Professional Documents
Culture Documents
Prof S V Bidwai
Core Competence
at
and
Net Sales: 4652.6 billion yen (fiscal year ended March 31, 2007)
Consolidated Subsidiaries: 342 (as of March 31, 2007)
Present Logo
NECs Headquarters
Vision of NEC
Corporate Philosophy NEC strives through C&C to help advance societies worldwide toward deepened mutual understanding and the fulfillment of human potential
NECs Commitment
Attaining customer satisfaction Developing new technologies Conducting fair corporate activities Disclosing information Preserving the global environment Maintaining good relations with the community Conducting thoughtful corporate citizenship activities Protecting human rights Valuing employees Protecting intellectual property and personal information
Corporate Staff
Historical Milestones
Discovery of single walled carbon nano-tubes by Sumio Iijima
Creation of the Earth Simulator, the fastest supercomputer in the world at the tim World's first demonstration of the one-qubit rotation gate in solid state devices Invention of the widely used MUX-scan design-for-test methodology
The John M. Cowley Medal 2006 (The International Federation of Societies for Microscopy)- 03/09/2006
National commendation for Invention of a Synchronized Clock Generator for Optical Disc- 19/06/2006
The 2005 The Young Scientists' Prize, The Commendation for Science and Technology by the Minister of Education, Culture, Sports, Science and Technology 20/04/2005 19th Advanced Technology Award Fujisanke Business.i Prize- 04/07/2005
Products/Brands of NEC
NEC-Early Development
The partnership was established on August 31, 1898 by Kunihiko Iwadare and Takeshiro Maeda using facilities from Miyoshi Electrical Manufacturing Company Joint venture with US based Western Electric Company who had interest in Japanese phone market headed by Walter Tenney Carleton Revised treaty on 17th July, 1899 resulted in the birth of NEC Operations started with the production, sales and maintenance of telephones and switches Manufacturing plant was established at Mita Shikokumachi in 1901 Adoption of new technology (common battery switchboard) by the Ministry of Communications in 1903 Exported telephone sets to China in 1904
NEC-Early Development
Changes in Plant Management Policy In 1905, Iwadare visited Western Electric plant to see their management and production control Discontinued the Oyakata system of sub-contracting Inefficiency was removed from production process New accounting and cost controls were put in place Time clocks were installed Expansion of Japanese Telephone Market Number of telephone subscribers rose from 35000 to 95000 Entered the Chinese market in 1908 Established its first foreign sales office in Seoul (Korea) in January, 1908 Between 1907-1912, sales rose from 1.6 million yen to 2 million yen
NEC-Early Development
Setback by Ministry of Communications Delayed the third expansion plan of the phone service in March, 1913 Sales fell 60% between 1912 and 1915 During the interim, Iwadare imported appliances including electric fans, kitchen appliances, washing machines and vacuum cleaners to prop up company sales In 1916, the government resumed the delayed plan adding 75000 subscribers and 326000 km of new toll lines and successfully completed the installation of its own telephone lines in Hankow and Wuchang in China In 1919, NEC started its first association with Sumitomo Corporation The Great Kanto earthquake in 1923
NEC-Early Development
Stable growth
NEC was chosen to modify automatic telephone exchange equipment from European and US manufacturers
NEC started radio communications business and established a radio research unit in 1924 NEC started developing electron tubes in 1925 By 1930, it was manufacturing the first 500 W radio transmitter Developed photo-telegraphic equipment in 1928 It provided the Japans Ministry of Communications with the A-type switching system in 1929 In 1939, it made history by laying one of the worlds longest telephone cable lines; 3000 km from Tokyo, through Korea and into China
On December 22, 1941 the enemy property control law was passed
The Munitions Company Law was passed in October, 1943 Fire bombings affected both the plants reducing its capacity by 40%
Domestic Growth:
It began transistor research and development in 1950 It started exporting radio broadcast equipment to Korea in 1951
It established its first marketing subsidiary for communications equipment in North America in 1963
Operations in Latin America began in the 1960s with the sale of microwave communications systems
Entered the European market by shipping satellite communications earth stations and microwave communication systems
Began operations in Africa in the 1970s to promote economic development
It introduced its first digital switching system in 1977 for overseas market
In 1977, Japans National Space Development Agency launched the NECs geostationary meteorological satellite, named Himawari
In 1983, NEC stock was listed on the Basel, Geneva, Switzerland exchanges
NEC Information systems Inc started manufacturing computers and related products in US in 1984 In 1986, it delivered its SX-2 supercomputer to the Houstan Advanced Research Center In 1987, NEC Technologies (UK) Ltd was established to manufacture VCRs, printers and color TVs for Europe
especially how to co-ordinate diverse production skills and integrate multiple streams of technologies
- C.K Prahlad and Gary Hamel
3 Tests to identify a Core Competency It must have the potential to form the basis for entry into new product markets The competence must make a significant contribution to customer perceived value It should be difficult for competitors to imitate
C&C Architecture
Faced some challenges too in the same decade: Japanese economy came to a standstill NEC lost its status as the worlds largest semiconductor maker to Intel and was also behind Samsung and Hyundai electronics in the memory chip business Compact computer corporation (US) stunned the Japanese PC market by waging a price war
NEC- Financial Results for 2006-07 (fiscal year ended March 2007)
Profitability
Challenges in FY-2007
Reinforcement of growth strategy Steady execution of NGN business strategy
Change
+10
Percent Change
Currency Volume
+2.34%
YEN 8,474,000
NEC-Composition of Shareholders
NEC in INDIA
NEC strengthens its business capability in India through establishment of new company (NEC India Pvt Ltd) for IT/Network business NEC signs India-Sri Lanka contract NEC Solutions (US) joins hands with Niteo Partners Inc in Chennai to integrate offshore software delivery and BPO capabilities into its solutions business in the US NEC enters the Indian PC market in 2005 NEC and Sify form strategic partnership to promote thin client computing in India NEC enters into a joint venture with HCL (India)
Total Customers:
65.7 million
US markets served: 49 of top 50 Employees: Verizon Wireline: Wireline broadband connections: US Wireline Access Lines : 8.2 million 69000
41.4 million