Abstract

Corporate customers account for the largest share of Fujitsu's notebook PC sales. In Japan, product quality and brand image play a very important part in both corporate and consumer procurement. This is why overseas vendors have found it so hard to increase their Japanese market share.

As regards the potential for outsourcing production to Taiwan makers, Japanese vendors have not placed orders comparable with those from US vendors, making it difficult for them to reduce prices significantly. Japanese vendors' emphasis on product quality has also put them at a disadvantage when negotiating with contract makers, and there have been possible concerns about maintaining the yield rate.

Fujitsu has therefore decided to concentrate on optimizing the production at its Shimane plant in Japan, seeking improvement in product quality, customer service, and brand image. Fujitsu's aggressive implementation of the unified management and the Cell+Line production model have enabled the company to reduce lead time and improve overall production efficiency. At the same time, the extensive use of automated production equipment has helped it reduce personnel costs. By leveraging its comprehensive distribution and after-sales service network in Japan, Fujitsu has succeeded in enhancing its competitiveness in the Japanese domestic market. Fujitsu's strategy would appear to offer useful lessons for other notebook PC vendors.

Appendix

List of Companies