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Posted by Dan Bieler on November 19, 2011
During its Fujitsu Forum, which was attended by over 10,000 customers and partners, Fujitsu presented itself as a company in transformation from a fairly disjointed business to a more streamlined international business. Fujitsu’s new strategy has three main components:
Fujitsu is a significant global ICT player. Fujitsu had a turnover of US$55 billion in 2010, US$19 billion of which was generated outside Japan, and a net income of about US$ 660 million and 172,000 employees. The company intends to generate half of its sales by 2015 outside Japan, up from one-third today. Half of Fujitsu’s turnover is coming from services; a quarter from PCs and mobile devices; networks and components accounting for the remainder.
Given this scale, it is all the more surprising how poor brand awareness of Fujitsu is outside Japan. As a sign of its international commitment, Fujitsu transferred the headquarters for its hardware business from Japan to Germany, including all related R&D activities. Fujitsu can already point to tangible progress. For instance, it is running out of capacity in its Augsburg factory, where it had to add night and weekend shifts to meet demand.
But Fujitsu is still underplaying its hand, especially in Europe. In our view, it is missing the “alternative to US-centric IT services providers” pitch. Fujitsu is strong in Europe, given its Siemens heritage. In addition, Fujitsu is making little usage of its Asian origin. It should cater more to both these regions as a “regional” player. Huawei has just announced that it will also pitch to enterprise users and consumers in Europe — via its telco channel partners. As a channel-based business, Fujitsu should take notice of the self-confidence its Chinese neighbor demonstrates in Europe. There is some road to travel for Fujitsu . . .
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