Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

Hitachi, Ltd. Is a Japanese multinational corporation specialising in high technology and services that makes everything from rice cookers to nuclear reactors. Founded in 1910 as an electrical equipment repair and manufacturing facility, Hitachi now has over 360,000 employees worldwide and the third highest revenue of any tech company in 2009.

Hitachi seems to be at a pivotal moment in their history after a bittersweet year. Built on the continued success of their quality electronics, the corporation managed to turn its first net profit in five years. Further, rumours have surfaced that a merger with Japanese industrial juggernaut Mitsubishi is on the cards. However, it is not all rosy for the giant Japanese conglomerate. The Tsunami in 2011 and the following Fukushima incident may have irreparably damaged not only the Japanese economy, but one of Hitachi’s core businesses – nuclear power. It is also rumoured that Hitachi are looking to close their domestic TV arm, having joined the 3D revolution late.

These things coupled with a high cost structure could mean a merger with Mitsubishi, who are also struggling to turn a profit, may be their saving grace – if it goes ahead. It will be interesting to see if Hitachi can regain ground on its competitors in the following year. Merger or not, this year could be make or break.

Hitachi-Mitsubishi merger rumoured to be in the works

Two of Japan’s oldest conglomerates are rumoured to be in talks of a groundbreaking merger. It would be Japan’s biggest domestic merger, signalling the start of a long awaited shake-up of the nation’s industrial giants. Mergers are traditionally seen by the Japanese public as the last resort for a failing firm, however this partnership would be a good chance to cut costs, combat the rising value of the Yen and increase their competitive scale. Further, the two companies would no longer be competing for projects abroad creating potential to boost Japan’s faltering economy.

With a combined history of over 200 years to draw on there is undoubtedly huge potential behind merging two of Japan’s most established brands. However any combination the two distinct brands would not be without danger of eroding each other’s core values.

New SSD released by Hitachi faster and cheaper

Hitachi GST have introduced a multi-level cell SSD that’s surprisingly faster than its single level cell product as well as being expectedly cheaper. This could be a sign of Hitachi become a big player in the SSD market taking on the likes of Intel.

Hitachi to donate an electron microscope to five universities in Indonesia

In August 2011, it was reported that Hitachi will donate an electron microscope to five universities in Indonesia. This will help expand its positive brand values in the region and reinforces the Hitachi brand statement, ‘Inspire the Next’.

2011’s Tsunami damages Hitachi’s core nuclear business

After the Fukushima incident the perception of nuclear power has taken a knock, with many large economies seemingly making moves away from it as a viable power source. Hitachi, that consider nuclear power a part of their core business, are expected to see their revenues fall in this area. Further, their brand may have been damaged by its links to nuclear power and in particular Japanese nuclear power – despite no obvious direct link itself to the incident itself.

Hitachi rumoured to sell its domestic TV production 

With Hitachi’s late arrival onto the 3D TV scene, the tech giant may be about to pack it in altogether. The new, 50-inch p50-GP08 may be Hitachi’s last as it looks to extract itself from TV market. With stiff competition from local rivals Sony and Samsung, Hitachi is facing an uphill battle to make their TV arm viable.

 

 

Last changed September 5, 2011

League tables

Hitachi appears in the following brand league tables:

Rank 44 in the Global 500 2012.
Rank 54 in the Global 500 2011.
Rank 54 in the Global 500 2011.
Rank 82 in the Global 500 2010.
Rank 46 in the Global 500 2009.
Rank 66 in the Global 500 2008.
Rank 74 in the Global 250 2007.