Nidec Corporation - Strategic Management

CELINO, JONATHAN R.
GS245- STRATEGIC MANAGEMENT
On July 23, 1973, Shigenobu Nagamori was working for a precision machinery maker
known as Yamashina Seiki when his boss called off the development of the miniature motor
project Nagamori was spearheading. Nagamori had been researching the development of
precision motors since his high school days and was determined to pursue opportunities in the
field. Consequently, he quit his job and, at the age of 28, started Nidec--originally known as
Nippon Densan Corporation--from a small building behind his house in Kyoto. Three engineers
from his former employer joined him. The four-person firm, with no startup capital except for
Nagamori's life savings, began researching precision motors.
Nagamori had no success finding customers at the large electronics manufacturers in
Japan. All they wanted to know "was how old I was and how many staff I employed," he told
Business Week in May 1999. Nagamori lacked connections to Japan's large industrial groups,
known as keiretsu, and in Japan's business climate small startup companies were only able to get
subcontracts. Nagamori did not want to play second fiddle to anyone. Thus he set off for the
United States, where he made cold calls to the companies he found in the Yellow Pages. He
managed to set up a meeting at 3M headquarters in St. Paul, Minnesota and won a contract worth
$2,000. That contract grew into regular orders for precision motors that 3M used in high-speed
cassette duplicators and so on.
Nidec Corporation now counted as one of Forbes: The World’s Most Innovative
Companies and is a Japanese manufacturer of electric motors. Development, manufacturing, and
sales of small precision motors, automotive motors, home appliance motors, commercial and
industrial motors, motors for machinery, electronic and optical components, and other related
products. Their products are found in hard-disk drives, electric appliances, automobiles, and
commercial and manufacturing equipment. The company has the largest global market share for
the tiny spindle motors that power hard-disk drives. It specializes and handles motor application
products based on "everything that spins and moves," centering on a motor business that
comprises an expansive product line from small precision to supersized motors.
With a passion to "become the world's No.1 Company," Nidec started business in a small
prefabricated shed with only four employees. With Nidec's motto, "Do it now, do it without fail,
do it until completed" exhorts employees to thrive on challenges. Fueled by independent
determination, flexible thinking and bold commitment to action, Nidec continues to be dedicated
to global leadership in its core competence of "turning & moving" products.
Since its founding in 1973, Nidec has grown rapidly through numerous mergers and
acquisitions. The company's founder, CEO and President Shigenobu Nagamori is known for his
competitive drive and his willingness to go against conventional Japanese business practices.
With more than three dozen subsidiaries, Nidec's production network stretches across Asia. The
company has factories in China, Thailand, Philippines, Indonesia, Singapore, and Vietnam, as
CELINO, JONATHAN R.
well as in the United States. Nidec's research and development capabilities have helped it remain
a leader in precision motor technology, enabling it to thrive amid the constantly advancing
information technology industry.
Nidec set up sales and procurement offices in Singapore, Taiwan, and Hong Kong in
1989, 1992, and 1993, respectively. The company also began locating factories outside of Japan
to take advantage of cheaper labor. Nidec Electronics (Thailand) Co., Ltd. was established in
1990 and Nidec (Dalian) Ltd., in 1992. Nidec built a plant in the northern Chinese city of Dalian
in 1994 in a joint venture with Koyo Seiko Co., Ltd., a leading Japanese manufacturer of
bearings. The drive to move production offshore gained momentum in the mid-1990s as Nidec
suffered from its exposure to exchange rate fluctuations. The company lost over ¥1.3 billion in
the fiscal year ending March 1995 because of the strong yen. In the following years, Nidec
increasingly transferred production to plants in Thailand, Singapore, China, and the Philippines.
The company established Nidec Philippines Corp. in late 1995 and invested ¥4.5 billion in a
large plant there to make spindle motors for hard disk drives. As manufacturing jobs were
transferred out of Japan, the domestic subsidiaries were converted into research and development
centers.
Vision
On the four pillars of "Small precision motors", "Automotive motors", "Motors for home
appliances, commercial use and industrial use", and "Other product groups", Nidec Group
accelerates its growth with self-supporting growth and a positive M&A strategy.
PARAMETER YES/NO WHY?

Does the company's vision Nidec aims to accelerate its growth with
answer the question "What do Yes self-supporting growth and a positive M&A
we want to become?" strategy.
The vision statement is inspirational with
Is it concise enough yet the desirable goal of creating success for
No
inspirational? the organization but it must be concise and
easy to read.
Nidec’s vision is very clear and attainable,
which seeks for self-supporting growth and
Is it aspirational? Yes
lead them to future advancement with the
use of a positive M&A strategy.
CELINO, JONATHAN R.
Mission
Nidec Corporation's mission is to contribute to the development of society and welfare of the
general public around the world. Nidec aims to do so by supplying the highest quality products.
Our company is sincerely and enthusiastically dedicated to the trinity of technology, expertise,
and modern science. Thereby, Nidec strives to promote the prosperity of our society, our
company, and all our employees.
PARAMETER YES/NO WHY?

Nidec aims to contribute to the development of society and the
welfare of the general public around the world. It means that they
Customers Yes want to cater their products to people globally and build a good
relationship in order to promote the development and welfare of
society.
Nidec aims to supply high-quality motor products to the market,

Products and which means they will provide an available supply of highest
Yes quality, indispensable,
Services
and widely desired products for the common good of all
Nidec's market was obviously stated in their mission statement
Markets Yes "...general public around the world...” which is the global market.
Nidec is enthusiastically dedicated to the improvement of its

technology, which means that the company is independent of
Technology Yes undertaking research and development on its own and from
participating in production and sales operations on its own,
without relying on other firms.
Nidec is sincerely and enthusiastically dedicated to the trinity of
Concern for technology, expertise, and modern science, which means the
Yes Company, is thriving for the continuous advancement of the
survival
company through the aforementioned trinity.
Nidec strives to promote the prosperity of our society, our

company, and all our employees, which means the Company
Philosophy Yes wanted to work in collaboration with the society and its
employees for its growth and advancement, not only for the
company but also for the world.
CELINO, JONATHAN R.

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CELINO, JONATHAN R.

GS245- STRATEGIC MANAGEMENT

PARAMETER YES/NO WHY?

PARAMETER YES/NO WHY?

Nidec aims to supply high-quality motor products to the market,

Nidec is enthusiastically dedicated to the improvement of its

Nidec strives to promote the prosperity of our society, our

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