Mabuchi Motor Case Analysis

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FOUNDATION UNIVERSITY
DUMAGUETE CITY
COLLEGE OF BUSINESS ADMINISTRATION

Topic: Mabuchi Motor Co., LTD. (Case Analysis)

In Partial Fulfillment for the Requirement in MAN12 (PRINCIPLES OF BUSINESS ORGANIZATION AND MANAGEMENT)

Submitted to:
ENGR. Ma. Carol P. Tubog, MM
March 19, 2013

Fortich, Kimberly M.
Salma, Mae Jenan I.
Villegas, Jeany S.

EXECUTIVE SUMMARY
Kenichi Mabuchi invented the world’s first high performance horseshoe-shaped magnetic motor. In 1954, Kenichi and his brother, Takaichi Mabuchi, set up a workshop within a toy company to begin production of small electric motors under the name of Tokyo Science Industrial Co. for the Japanese toy industry. In an effort to diversify from the toy business and into emerging markets for small motors, the Mabuchi brothers established their own trading company in 1957 under the name of Mabuchi Shoji Co., LTD. In the following decade, the market for small motors grew significantly in Europe, U.S, and Japan. Continue its expansion in Hong Kong, Taiwan, Germany, North America and China. Mabuchi continued to expand production with a focus on China in order to take advantage of the low cost of Chinese labor. They relied on Chinese operation to supply over 40 per cent of its total output of small motors. In the 1950s and 1960s, the main markets for small electric motors were toys and games including racing cars and model airplanes although, towards the end of this period, the audio and timepiece markets were beginning to merge. In the 1970s, new applications for small electric motors were being found in household electronics. Despite its strong worldwide position, Johnson Electric also a well-established and successful family-owned business, was an aggressive competitor absorbing the 35 to 40 per cent balance of market share not occupied by Mabuchi. Throughout its history, Mabuchi’s head office had always firmly controlled the activities of its subsidiaries setting standards for both product...
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