Foundation: 1910
Headquarters: Chiyoda Ward, Tokyo
President: Toshiaki Higashihara
Executive Summary: Hitachi is a highly diversified conglomerate operating across various sectors including telecommunications, financial services, power systems, electronics, transportation, and digital media. The company’s roots trace back to 1910 when its founder, Namihei Odaira, started an electrical repair shop in a copper mine northeast of Tokyo. The name “Hitachi” comes from the town where Odaira made his first sale. He repaired mine machinery and experimented with his own electrical designs, successfully producing Japan’s first domestically manufactured five-horsepower electric motor, which was superior to imported models in terms of durability and efficiency.
Initially, Hitachi concentrated on heavy electrical equipment and industrial machinery. Its sales surged after World War I when a major power company, unable to import German turbines, turned to Hitachi. This led to further contracts with other industries facing similar supply issues. By acquiring other companies, Hitachi became Japan’s largest supplier of pumps, blowers, and other mechanical equipment. In 1924, Hitachi constructed Japan’s first electric train.
During the Pacific War, under pressure from the military, Odaira was compelled to produce radar and sonar equipment for the Imperial Navy, though Hitachi did not manufacture weapons. The company’s factories were extensively damaged in Allied bombing raids, and post-war, US occupation forces initially sought to disband Hitachi entirely. Odaira was removed from leadership, and it took three years of negotiations to retain the manufacturing plants. A labor strike in 1950 further complicated recovery, but the Korean War provided a revival through US defense contracts.
Under Chikara Kurata, Odaira’s successor, Hitachi entered a phase of market expansion, forging technology partnerships with General Electric and RCA, which enabled global competition through licensing agreements. A significant strategic move was investment in computer technology, with Hitachi’s first computer developed in 1957, eventually becoming the world’s largest producer of analogue computers essential for scientific research.
In the 1960s, Hitachi ventured into consumer goods, launching household appliances. The company received substantial backing from Japan’s Ministry of International Trade and Industry to close the competitive gap with the United States. However, Hitachi faced a setback in 1982 when employees were caught purchasing technical secrets from IBM, tarnishing the company’s reputation.
More recently, under former President Katsushige Mita, Hitachi underwent reorganization with increased automation and investment in R&D. Today, Hitachi’s annual consolidated revenue is in the range of US$90 billion.
