Hitachi SWOT Analysis [Update 2022] ❤️

Hitachi SWOT Analysis 2022

Hitachi SWOT Analysis: Hitachi, which calls itself a social innovation company, is one of the most prominent manufacturers of consumer durables in the world. 

The Japanese conglomerate, headquartered in Tokyo has operations across a broad range of domains including information technology and consumer durables. It also offers high-function materials for healthcare and construction machinery.

Hitachi SWOT Analysis

It is also active in the development sector of social infrastructure. The company aims to create products to improve the day-to-day lives of people by providing water, power, and energy solutions. 

The company’s 2017 revenue was 9.2 trillion JPY. It has also been consistently ranked in Forbes’s most highly regarded brands. The company has a strong network and is present on all continents and countries.


Since its founding around the year, 1910 Hitachi has made strides a far way to reach the top spot within the Japanese consumer durables sector. 

It has been committed to introducing high-tech products that put Hitachi at the forefront of technological advancements. 

This focus on ongoing technological innovation and innovative products that have led Hitachi to be a global household brand.

Hitachi employs a broad range of solutions and technologies to meet the needs of customers economic and social needs which include fields that include Social Infrastructure, Digital Smart Society, Energy & Environment as well as Urban Development & Security. It is one of the largest in Japan and operates in more than 60 nations.

In the case studies in this study, we’ll explore in-depth the opportunities for marketing that are available to the electronics giant Hitachi as well as an in-depth review of its strengths as well as its weaknesses, opportunities, and threats.

Strengths In The SWOT Analysis Of  Hitachi 

The strengths of a business are the best things it does in its operations, which can help it gain an advantage over its competition. Hitachi’s strengths are listed below:

❤️ Core Hitachi is committed to a strong values system that is integrated into all of their activities and that is followed by everyone, from their leaders to their employees. These core values include honesty, fairness, and commitment to society and the environment, as well as respect for human rights, transparency, and ethical conduct.

❤️ Presence across multiple areas: Hitachi Group is strong in many areas of operation in such a manner that each business compliments the other. They are primarily focused on IT, power, industrial, and social infrastructure. Electronics, healthcare, defense system, finance, and automotive systems are their major areas.

❤️ High levels of commitment to society and the environment: Hitachi is known for its high level of dedication to society and the environment. It is one of the 113 brands that are part of the CDP’s Climate A list and has always produced compliant products. They have many social welfare programs that cater to Southeast Asian underprivileged communities in areas such as education, health, and women empowerment.

❤️ Building strong relationships with stakeholders Hitachi is committed to building lasting relationships with all stakeholders.

❤️ Global network The Hitachi Group is focused on creating a global network for partners and distributors. Through offices located in different parts of the world, including the Americas, Middle East, Asia, Oceania as well as Europe, they have a global presence.

 Weaknesses In The SWOT Analysis Of  Hitachi 

These are areas in which the brand or the business needs improvement. Hitachi’s key weaknesses include:

❤️ Too dependent on external suppliers: Hitachi sources all its raw materials from a variety of suppliers spread around the globe. It is difficult to coordinate with different suppliers and manage fluctuations in currency rates.

❤️ Long-term agreements: In areas such as construction and power, the company enters long-term deals with customers and vendors. The company must consider the effects of environmental changes.

❤️ A mismatch between demand and supply is In the consumer durables sector, there is a large gap in supply and demand. The current demand exceeds the supply, and there is an excess of products. This can adversely impact your business in the long term.

❤️ Excessive outbound growth: The company is involved in extensive expansion all over the world and it is becoming increasingly difficult to control the expanded scope of operations. Scaling up is also becoming more challenging.

 Opportunities In The SWOT Analysis Of  Hitachi 

Opportunities are those opportunities in the environment around a business that can be tapped to increase its return. These opportunities include:

❤️ Expanded opportunities in information technology: The IT market will reach 300 billion US dollars by 2020, with a cumulative growth rate of 9.9 percent. India is expected to become a major market for IT and ITES over the next decade, with a growth rate of 7.2 percent.

❤️ Infrastructure growth: Emerging economies have greater infrastructure needs. Many of these projects are funded by the government. Hitachi and other companies should work to build ties with emerging economies’ governments.

❤️ Cloud Computing: Hitachi is a prominent player in cloud computing. The cost-effectiveness of cloud-based services will drive the market for cloud computing to increase exponentially. This opportunity Hitachi should seize.

 Threats In The SWOT Analysis Of  Hitachi 

Threats are factors that can harm the business’ growth. These are some of the potential threats:

❤️ Competitor: Voltas is up against many other companies, including LG, Samsung, and Whirlpool.

❤️ Economic Trends: There have been constant problems in the economies around the world. This is likely to impact the company that has its main operations there.

Limitations of the SWOT Analysis for Hitachi Conglomerate

The SWOT analysis is a popular tool for strategic planning, but it does have some limitations.

  • Some capabilities or factors can be both a strength or a weakness of an organization. This is one of the main limitations of SWOT analysis. If the company is able to develop products faster than its competitors, changing environmental regulations could be a threat or a benefit.
  • SWOT is not a way to gain a competitive advantage. It should not be a goal in and of itself.
  • This matrix is only a starting point to discuss how strategies might be implemented. The matrix provided an evaluation window, but not an implementation plan. It was not based on the strategic competitiveness of Hitachi (Conglomerate).
  • SWOT is a static analysis – an analysis of the status quo that includes a few potential changes. The dynamics of a competitive landscape may change as circumstances, capabilities, threats, and strategies change.
  • The SWOT analysis could lead a firm to focus too much on one external or internal factor when formulating its strategies. SWOT analysis may not show the interrelationships between key internal and external factors. This could be important when devising strategies.

Weighted SWOT Analysis of Hitachi (Conglomerate)

Given the above-identified shortcomings of the SWOT analysis/ matrix, the corporate management has decided to assign the weightage to every internal strength and weakness of the business. 

They also consider the likeliness of future events happening in the near future and what the effect will be on the company’s performance.

This technique is known as a weighted SWOT analysis. It is superior to simple SWOT analysis since with the weighted SWOT analysis Hitachi (Conglomerate) Managers are able to concentrate on the most crucial elements and eliminate the less crucial ones. 

It also eliminates the long list issue that causes organizations to make a lengthy list but not addressing any is considered to be important.

References / Citations & Bibliography

  • M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
  • A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
  • O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
  • L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
  • R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)


To revive the business, Hitachi has been focusing on marketing and improving technological advancement. 

The business environment around Hitachi is evolving rapidly because of deregulation across industries as well as globalization in Japan. 

While these changes can create new opportunities for Hitachi, they present new problems that demand Hitachi to change and innovate.

The Japanese industrial firm, Hitachi, has been restructuring to ensure that it is back on the right track. The company is looking for new methods to connect with its employees and with the general public.

This will result in a new and exciting experience for everyone. While this transition was an uphill climb, Hitachi now seems ready to move forward.

Hitachi continues to create new products that can help people and businesses to improve their lives. 

The company is a creative lifesaver for the industry and is facing the challenge of decreasing market share in key sectors. 

Hitachi’s marketing strategies are meticulous efforts to connect with prospective customers in order to help in deciding on the best offer from the brand. 

While doing so, Hitachi is focusing on increasing its brand’s image and reputation by engaging in socially responsible efforts.

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