Asahi Glass
Asahi Glass
Asahi Glass
Company History
1. From Start Up to World War II (1907 1945)
1907: Founded by Toshiya Iwasaki
Company History
2. From World War II to Oil Crises (1945 1973)
1950: Float Glass was invented; Asahi Glass got license to the
Float Glass process
1954: Got licensed from corning glass work, started to produce
TV glass bulb Fiber Glass
1956: Entered fabricated automobile (safety) glass business
Borosilicate Glass
Company History
3. From Oil Crises through early 1990s (1973 1990s)
1970s: Revenue from glass and construction business accounted
for more than 50% of total revenue
1976 : Began building electronic business to produce Liquid
Crystal Display (LCD)
1981 : Began producing Optical Lenses, both glass and plastic
lenses.
Assignment Questions
1.
2.
3.
4.
DIVERSIFICATIONS
Its original domestic glass business had matured, while the rapid
globalization of its activities into Europe and North America
challenged its management practices
Business Line
Diversification
Reason
Sub Reason
Value creating
(Related)
Economies of scope
Market power
Chemicals
Value creating
(Related)
Economies of scope
Ceramics and
Refractories
Value creating
(Related)
Financial economies
Value creating
(Unrelated)
Financial economies
DIVERSIFICATION STRATEGY
75% of Asahi business line were related into each other
Glass &
Constructi
on
Electronics
Profit Share:
Chemicals
Ceramics
Yes it did,
Diversifying into
New Businesses
Acquisition
Internal Growth
Joint venture
Division
Chemicals
Joint Venture
Internal Growth
Joint Venture
The company should not focused in TFT & films head electronic
division.
The firms could not compete with other rivals in which they
have more expertise and experience in electronics market
AGC
Corporate
Strategy
+
Like its glass business, Asahi Glass' chemical business rapidly
added new products and markets after the war.
Asahi Glass Company:
Glass and
related
business
Chemicals
Ceramics
Electronic
Typical US Firms
Asahi Glass Company was being the market leader with an exceptional
quality control record and distinguished technology