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vs.

Group A
Mayur Chamaria, Bharti, Tania Garg,
Venkatesh Dunna and Karthik Arumugham

Company Overview
S.N. Asahi Glass
Company
Pilkington Plc (NSG)
1. Turnover (in Million
Yen)
1,579,077 552,223
2. Profits (in Million
Yen)
57,183 (1,749)
3. Company
Headquarters
Tokyo, Japan Tokyo, Japan
4. Manufacturing
Capabilities
Across 30 countries Across 30 Countries
4. Operating Income
(in Million Yen)
108,437 4,386
5.

Employee strength 51,448 27, 000
6. R&D Expenditure
(on average)
3-4% of sales 3-4% of sales
Company
Overview
Value chain &
Sourcing
Manufacturing
& Distribution
R & D
Emerging
Markets
Organizational
Structure
Future Strategy
Value Chain
Design
Launch
Supply
Development
Mfg. Distribution Customer Sales
Voice of Customer
Fulfilment Supply Chain
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Suppliers
CE
Generic raw materials from suppliers

Low supplier involvement

High customer involvement in design
and development (enterprise customers -
building, automotive, electronics etc.)
Sourcing
Vertical
Integration
Standardized
Transactions
Detailed,
Unique
Contracts
Detailed
Standardized
Contracts
Asset Specificity
High Low





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H
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h

Raw Materials 32.1% & Fuel and Energy 42.6% of total
production costs
Asahi Glass Co. Integrated
Uses soda ash and refractory materials for furnaces from AGC
ceramics
Mining leases for high quality silica in India
Pilkington
Importing raw materials, Contractual relationships with
suppliers
JV- Pilkington UK and Gruppo Minerali Maffei to supply sand

Company
Overview
Value chain &
Sourcing
Manufacturing
& Distribution
R & D
Emerging
Markets
Organizational
Structure
Future Strategy
Manufacturing & Distribution
Manufacturing:
AGC: Float glass, Automotive glass & FPD glass substrates
Focus on customers plants close to manufacturing units
Pilkington : OE glass, aftermarket replacement glass and products
for specialized transport
Focus on risk diversification - Extensive international presence reduces
exposure to factors such as labor strikes, etc.


Distribution :


Industry trend: Companies operate in satellite facilities (captive supplier) to
cater to the demand of automobile companies
This is more integral to the business strategy of AGC who have expanded
Geographically with their automobile partners

Company
Overview
Value chain &
Sourcing
Manufacturing
& Distribution
R & D
Emerging
Markets
Organizational
Structure
Future Strategy
Research & Development
Company
Overview
Value chain &
Sourcing
Manufacturing
& Distribution
R & D
Emerging
Markets
Organizational
Structure
Future Strategy

Own R&D centre for each in-
house unit (glass, chemicals,
electronics and ceramics )
Product Dev. & Production Tech.

Centralized Research Centre
and Engineering Centre
integrated into General
Technology Division

Driven by core technologies -
glass integration, glass materials,
coating, ceramic materials,
fluorine and chemistry

Enhance and leverage core
technologies across business to
produce innovative products

Focus on Tech. Development

Structure

Globally run R&D centre for each
business line building products,
automotive & technical glass

Centralized R&D Centre in Japan

Centralized Technology and
Engineering Divisions

Driven by market- functional
needs of customers or market
trends

Technology and processes
subsequently developed to
achieve required product
specifications and performance

Focus on Product Development
Process
Driver
Asahi Glass

NSG (Pilkington)

Emerging Markets
China biggest consumer in the world (50% plus)
South America and India economies showing high potential
Asahi Glass Company
Localization strategy of growth with automobile companies
Leader in automotive glass in India
Trying to expand in emerging markets
Pilkington
Globalization Strategy of overseas expansion by collaboration
Focus on developing growing markets
Significant presence in China and South America

Company
Overview
Value chain &
Sourcing
Manufacturing
& Distribution
R & D
Emerging
Markets
Organizational
Structure
Future Strategy
Organizational Structure
Asahi Glass Company
Various organizational reforms during last decade
2009- Automotive and architectural glass under AGC glass and
technological glass under AGC electronics
AGC Glass has three regions- Americas, Europe, Japan & Asia
2013- Regional division changed into the business categories: Building &
Industrial and Automotive Division

NSG (Pilkington Plc)
Product wise division at the HQ level, regional heads reporting to product
heads
Centralized structure- to manage units and have economies of scale)
2006- Pilkington merged to NSG, and Pilkington head appointed as
automotive head
Brands Pilkington for automotive and architectural glasses and NSG group
as technical slides

Company
Overview
Value chain &
Sourcing
Manufacturing
& Distribution
R & D
Emerging
Markets
Organizational
Structure
Future Strategy
Future Growth Strategy
Asahi Glass Company
Shifting focus to Safety, higher quality and clean energy
Second round of globalization
Focus on core technologies
Combining technologies across glass and chemicals to
offer new solutions

Pilkington
Focus on expanding value-based business
New products like low e-glass, IR-cut to drive growth
Expand capacities in growing markets like India

Company
Overview
Value chain &
Sourcing
Manufacturing
& Distribution
R & D
Emerging
Markets
Organizational
Structure
Future Strategy

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