Toshiba's Revival Strategies

This assignment analyzes Toshiba's business strategies in reviving their growth. The company needs to implement a suitable placing strategy, including e-commerce facilities and retail outlets. A low pricing strategy is initially required, followed by price skimming for innovative products. Promotional activities like brand campaigns on social media platforms are also crucial. The analysis highlights the importance of these strategies in Toshiba's recovery from past setbacks.

Running head: MANAGEMENT ENQUIRY IN TOSHIBA
MANAGEMENT ENQUIRY IN TOSHIBA
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Business strengths and weakness.................................................................................................2
Strengths......................................................................................................................................2
Weaknesses..................................................................................................................................3
2. Development of new product and services..................................................................................4
3. Competitors..................................................................................................................................5
4. Marketing strategies.....................................................................................................................6
References........................................................................................................................................9
Spreadsheet....................................................................................................................................10
1. Overall growth revenue of Toshiba in last five years (2013-2017).......................................10
2. Sales Growth of Toshiba in last five years (2013-2017).......................................................10

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1. Business strengths and weakness
Toshiba is one of the leading electronic companies of Japan, who deals with different
product line in international market. The reputation of the company and their business expansion
came into news long before the new competitors had emerged (Salah 2015). The values their
products and customers’ trust trembled in recent few years, where the international business
arena was curtailed in a decreasing manner and business of Toshiba get huge threat from the
market. In this scenario, strength and weakness of the company is the major concern for
evaluating the mistakes and determine the problem situation faced by the company in last few
years.
Strengths
 Toshiba is the leading power transmission and distribution company in the global market.
They have supplied their power energies in a different technologies’ sector in all over the
world. Good amount of revenue thus earned by that process and that help the companies’
infrastructure to grow.
 Toshiba spends most of their sales revenue in research and development sector so that
qualities of the product will satisfy customers’ desire.
 Toshiba got patented a large number of their products in America, a huge profit can be
earned through this nation. 300 billion dollars has been invested by the company in R&D
to get 2500 patent in the US (Toshiba.co.jp 2017). The company is considered as the
technological leader at this time, however, in case of modern product innovation and
marketing arena, the company is lagging behind.

3MANAGEMENT ENQUIRY IN TOSHIBA
 The company has diversified range of electronic products which enhances the revenue
level of the company. The product portfolio is huge for the company and electrical and
computer accessories are the most important products among them.
 The brand value of the company is essential also for an extended stretch in the
international market. In terms of the global brand standard published by Forbes, the
company is ranked in 727 of all global products (Toshiba.co.jp 2017).
 Consistent marketing performance is the main USP for the company and that will help in
case of promoting the company in large scale and delivering the quality products for
customers.
 The company is re-branding their business opportunities and eliminating risks in the
global nuclear power business. Toshiba Nuclear Energy Holding (UK) process
deconsolidated 2016 full year results and that encouraged business options for Toshiba to
formulate the process in a safe way.
Weaknesses
 Toshiba energy concentration rate is very less and the company does not manufacture
green machines. The concept of the green machines lies in the less consumption of
energy and more productiveness from this energy, but Toshiba is not able to meet that
prospect that the US wants from that (Toshiba.co.jp 2017). The management considers
this fact as one of the major drawbacks for them but the infrastructure needed for changes
this entire setup is not affordable for the management of Toshiba.
 The financial debt is a big concern for the company and that will downgrade the financial
aspect as well as the market value of the company. In case of Japan and US, Toshiba is

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facing some debt issues so new strategic implementations will be needed for the
development of the financial aspect of the company.
 The stagnant company growth since last few years is noticed in their revenue process
and the sales growth aspect. The income flow is not constant also and that is the reason
revenue is not generating in a right manner.
 Toshiba needs to perform as a whole, which is not attainable by them. There are some
sections in Toshiba, which are doing their level best to achieve the target and other
sectors are mere spectators in that case as they are not generating enough review for the
company.
 Transformation of products innovation are not addressed in a relevant way and company
like Toshiba, this is an unsatisfactory factor for the company to positioning themselves in
the market.
 The company has a limited market share and shareholders are not investing their money
in new projects and for that reason, Toshiba is facing problem in total equity and assets.
Drop down in asset and equity continues in 2016 and 2017 also and these figures will be
impacted by the company’s revenue and market involvement process (Toshiba.co.jp
2017).
2. Development of new product and services
Toshiba has different sections of products and services like semiconductor, social
infrastructure, home appliances, computer hardware, lighting, office equipment, medical
equipment, elevators and escalators, and electronics. All these sections are controlled by the
parental company Toshiba. Some of the new products are also coming in the market like Fujitsu
Toshiba IS12T smartphone, Toshiba Super Color Vision screen use and some ultrasound

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equipment and x-ray equipment’ all these are new innovations for Toshiba. They have invested
their money for electricity turbines, nuclear reactors, and fuel cells (Toshiba.co.jp 2017). Power
transmission process and distribution system are the prime aspects of the company and that is the
reason they have concentrated their technological research and development as well.
However, the promotion and trust form the people are not quite effective towards the
company and the products and services are lagging in downturn rate (Stark 2015). Cash flow and
growth in revenue all are lagging behind and other companies are taking this advantage to
promote their brand and provide quality service to people. Some of the digital products are
coming from them are very good in quality but the market for their innovation has got a threat by
other competitor companies (Trappolini 2014). The target market is not recognized by the
company and that will set them back for another few years to come back on the track of success.
3. Competitors
Sony, Olympus, and Hitachi are from the same industry; still, they are doing their
business in an effective way. Market economy and targeting the right people with the innovation
is the correct way of transforming the business. The sense of competition examined by the
management also and Toshiba also get neglected by people for this reason (Tukker and Tischner
2017). Localize companies and international companies both segregate Toshiba’s market and as
the company is not doing enough business in last few years people are not involving with the
company in that manner. Some of the electronic goods with high specifications are sold at
reasonable prices. In this modernize culture, people love to see innovation from the company and
continuo lack and affecting arenas are persisted in this sector of Toshiba (Miyazaki and Nishida

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2015). Fujitsu Limited, NEC Corporation, Texas Instruments, Accenture, Dell, Samsung, Apple,
Oracle, Hewlett-Packard, and Smart Global Holding are the extensive competitors of Toshiba.
Figure 1: Product manufacture rate of companies
(Source: Toshiba.co.jp 2017)
These companies are doing business as they are genuinely leading towards the
innovation. Toshiba has the tagline associated with the innovation but the company is lagging
behind in terms of fulfilling the tagline vision (Prasetyo and Purwantini 2017). Less revenue
generation is the outcome of this process and that will highlight the market position of the
company in terms of revenue.

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4. Marketing strategies
4P’s of marketing strategy needs to be implemented by Toshiba so that they can gain a
better position in this competitive market. Product, Place, Price, and Promotion are the four
important strategies need to be followed by Toshiba.
At first, product strategy needs to be changed for Toshiba so that customers’ can re-gain
their attraction towards those products (Kew and Stredwick 2016). Innovative storage system
and device solution of Toshiba are the key factors that will enhance the market position of the
company. Infrastructure system and energy consumption strategy need to take by the company so
that product will be high on quality and that encourage the production growth rate as well.
Headquarter of Toshiba is in Tokyo, Japan and they have a good field in the US as well.
However, the company has to cover the entire Asia Pacific, Europe, and the Middle East and
Africa for their enhancement of production (Toshiba.co.jp 2017). R&D process needs to be
strong so that company can enhance their productive policy as well. E-commerce facility and
retail outlet process are the main placing strategy that they need to formulate.
Pricing strategy is another important strategy that focuses on the quality of product and
attaining customer s’ trust from that product. As for the situation of Toshiba, they need to
implement low pricing strategy at the time of the re-starting their business (Fossum 2013). After
the initial time has gone then they have to move in favor of price skimming strategy, where some
of the products that launched by them will be more efficient in terms of innovation, must contain
high price. The pricing strategy is important for company’s growth, thus it needs to be executed
in a proper manner.

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Promotional strategy is the last strategic change that needs to be introduced by Toshiba.
A brand campaign like “Bring Life Forward” is a business to a business promotional strategy
where e-marketing promotional activities are done by Facebook, Twitter, snapdeal, Flipkart,
amazons and other online portals. Rugby world cup 2015 was organized by Toshiba and these
promotional activities are important for Toshiba to bring them back on track where the company
can make a suitable balance in growth and revenue generation (Toshiba.co.jp 2017).

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References
Fossum, E.R., 2013. Camera-on-A-chip: Technology transfer from saturn to your cell
phone. Technology & Innovation, 15(3), pp.197-209.
Kew, J. and Stredwick, J., 2016. Human resource management in a business context. Kogan
Page Publishers.
Miyazaki, K. and Nishida, K., 2015. Technology strategies of the main actors and the strategies
towards standards: the case of the diffusion of smart houses in Japan.
Prasetyo, E.T. and Purwantini, S., 2017. An influence analysis of product quality, brand image,
and price on the decision to buy toshiba laptop (A Study on Students of Economics Faculty of
Semarang University). Economics and Business Solutions Journal, 1(2), pp.11-18.
Salah, K., 2015, December. A SWOT analysis of TSV: Strengths, weaknesses, opportunities, and
threats. In Microelectronics (ICM), 2015 27th International Conference on(pp. 214-217). IEEE.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume
1) (pp. 1-29). Springer, Cham.
Toshiba.co.jp 2017 Annual Report retrieved from:
https://www.toshiba.co.jp/about/ir/en/finance/ar/ar2017/tar2017e_or.pdf [Accessed on 12th
March, 2018]
Trappolini, D., 2014. A Tale of Three Companies: The Survival Strategies of Sony, Hitachi, and
Canon. In Case Studies in Asian Management (pp. 119-145).
Tukker, A. and Tischner, U. eds., 2017. New business for old Europe: product-service
development, competitiveness and sustainability. Routledge.

10MANAGEMENT ENQUIRY IN TOSHIBA
Spreadsheet
1. Overall growth revenue of Toshiba in last five years (2013-2017)
2013 2014 2015 2016 2017
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
5,935,259 6,489,702 6,114,682
5,154,838 4,870,773
Revenue
Year
Figure 2: Overall growth revenue of Toshiba in last five years
(Source: Toshiba.co.jp 2017)
2. Sales Growth of Toshiba in last five years (2013-2017)
2013 2014 2015 2016 2017
-20%
-15%
-10%
-5%
0%
5%
10%
15%
9%
-6%
-16%
-6%
Sales Growth
Sales
Growth

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Figure 3: Sales Growth of Toshiba in last five years
(Source: Toshiba.co.jp 2017)