In the second half of 2006 Company J asked Hitachi High-Technologies to handle sales of hard disk drives meeting automotive specifications to Japanese and overseas manufacturers of vehicle navigation systems. Taking advantage of this opportunity, a marketing initiative was launched, with the Head Office, Kansai Branch Office, Chubu Branch Office, and Hitachi High-Technologies Europe GmbH (HTE) playing the central roles. Initially, it was difficult to prize away market share from existing suppliers, but the products offered by Company J were competitive in price and quality, and the business began to turn a profit in fiscal 2010. That year the sales efforts of Hitachi High-Technologies aimed at Japanese and overseas manufacturers bore fruit, and the automotive hard disk drive market share of Company J exceeded 40%, up from a little over 10% in fiscal 2006. In addition, the portion handled by Hitachi High-Technologies grew from less than 10% to nearly 30%.
In fiscal 2008 efforts to boost sales of hard disk drives to manufacturers of vehicle navigation systems for German automobiles got underway. This also took the form of procurement from a single supplier. Based on an initiative by Hitachi High-Technologies, a global project team was put together, including people from the overseas facilities of Hitachi High-Technologies, and efforts were made to convince the customer of the need to avoid the BCP risk associated with natural disasters such as earthquakes and fl oods, and to put in place a system that would provide close follow-up with customers. Hitachi High-Technologies explained to the management of Company J the scale of stable business with the customer over the long term and the need for strategic pricing. Once this was accomplished, it was possible to break through the defenses of the competition. The share of the global market for automotive hard disk drives handled by Hitachi High-Technologies is expected to exceed 50% in fiscal 2015.
This is a good example of how the domestic and international network of Hitachi High-Technologies makes it possible to increase sales in a short period of time.