Foster Electric 20 Years of Reform and Leadership
Foster Electric
20 Years of Reform and Leadership
(October 2013) Foster Electric is presently approaching its greater growth period in its 65 year history. For Fiscal year ending in March 2014, sales are expected to be a record 159 billion yen with profits of 4.8 billion yen. However, the path to achieving these stellar results has not been easy. Harsh times have included the bursting of the economic bubble in Japan, severe cost competition, and other impediments. The question becomes what enabled Foster to overcome these adversities. Was it globalization and successful cost reductions? Was it strong leadership within the company? Or, a combination of both or something else? Can Foster continue to be a winner in the face of stiff competition from Chinese and Korean competitors? If so, how? There is great interest among stakeholders regarding Foster’s future direction.
Foster Electric (Founding to early 1990) Foster today is an OEM (Original Equipment Manufacturer) of loudspeakers and audio equipment. It began in June of 1949 in the Shibuya district of Tokyo where Mr. S.
Nishimura and Mr. H. Shinohara established the Shinano Onkyo Institute to manufacture speakers. In the 1950’s, Foster’s (still Shinano Onkyo) reputation for its technical abilities shot higher as Foster manufactured speakers for transistor radios which were being mass produced at the time, especially the Sony TR-55. In 1962, production began on microphones and earphones. In May of the same year, Foster listed on the Second Section of the Tokyo Stock Exchange. In 1963, Foster began production of circuits for 8 transistor radios and of headphones the following year (1964), solidly establishing Foster as an OEM manufacturer. Concentrating on the production of speakers, microphones, earphones, headphones and circuit products, Foster enjoyed steady growth in sales from the 1960’s through the 1980’s. Business with GM especially
20 Years of Reform and Leadership
(October 2013) Foster Electric is presently approaching its greater growth period in its 65 year history. For Fiscal year ending in March 2014, sales are expected to be a record 159 billion yen with profits of 4.8 billion yen. However, the path to achieving these stellar results has not been easy. Harsh times have included the bursting of the economic bubble in Japan, severe cost competition, and other impediments. The question becomes what enabled Foster to overcome these adversities. Was it globalization and successful cost reductions? Was it strong leadership within the company? Or, a combination of both or something else? Can Foster continue to be a winner in the face of stiff competition from Chinese and Korean competitors? If so, how? There is great interest among stakeholders regarding Foster’s future direction.
Foster Electric (Founding to early 1990) Foster today is an OEM (Original Equipment Manufacturer) of loudspeakers and audio equipment. It began in June of 1949 in the Shibuya district of Tokyo where Mr. S.
Nishimura and Mr. H. Shinohara established the Shinano Onkyo Institute to manufacture speakers. In the 1950’s, Foster’s (still Shinano Onkyo) reputation for its technical abilities shot higher as Foster manufactured speakers for transistor radios which were being mass produced at the time, especially the Sony TR-55. In 1962, production began on microphones and earphones. In May of the same year, Foster listed on the Second Section of the Tokyo Stock Exchange. In 1963, Foster began production of circuits for 8 transistor radios and of headphones the following year (1964), solidly establishing Foster as an OEM manufacturer. Concentrating on the production of speakers, microphones, earphones, headphones and circuit products, Foster enjoyed steady growth in sales from the 1960’s through the 1980’s. Business with GM especially