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Case Study

Overcoming adversity through innovation – Daikin at 100 (B): Sustainability lessons

By Kazuo Ichijo and Yunfei Feng

9 pages

December 2024

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Reference: IMD-7-2619

This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.

Learning Objective

Develop effective globalization strategies: Understand the principles of successful globalization strategies and how companies can apply a multi-faceted approach to enter and thrive in diverse international markets.
Customer-centricity: Learn how adopting a customer-centric approach can drive innovation and responsiveness, enabling businesses to better meet the needs of local markets and enhance customer loyalty.
Integrate sustainability into business strategy: Examine the importance of sustainability initiatives in today’s market and how companies can capitalize on environmental trends to strengthen their brand and comply with regulatory demands.
Anticipate and navigate external challenges: Develop frameworks for identifying and addressing external challenges such as economic fluctuations and geopolitical risks, allowing companies to create resilient strategies that ensure long-term success.

Keywords

Global Business, Strategy, Sustainability, Globalization, Innovation, Responsible Leadership, General Management

Settings

World/global, Japan
Daikin Industries, Consumer Goods, Home Appliances
1924-2024

Type

Published Sources

Available Languages

English

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This case study is part of a series

Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons
Overcoming adversity through innovation – Daikin at 100 (B): Sustainability lessons
Overcoming adversity through innovation – Daikin at 100 (C): China market lessons

This case study is part of a series

Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons
Overcoming adversity through innovation – Daikin at 100 (B): Sustainability lessons
Overcoming adversity through innovation – Daikin at 100 (C): China market lessons

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