Dissection of Mitsubishi’s Business Model | How Does Mitsubishi Make Money?

Harshit Verma Harshit Verma
Oct 11, 2021 7 min read
Dissection of Mitsubishi’s Business Model | How Does Mitsubishi Make Money?
Mitsubishi shoji kabushiki kaisha.

No, this is not a magic spell from Harry Potter's world. In English we call the above phrase ‘Mitsubishi corporation’ which is equally magical as a spell. This article is a dissection of the businesses they do, their business model and the philosophy they operate with. So, take your diving suits with you and get ready.

Headquartered in Tokyo, Japan. If we dive into the articles of this company we will find that it reflects quite a clear view of their working areas. It says that the company will be involved in diversified businesses including purchase, sale, manufacturing and development of products. Logistics, new business development, providing services in a broad range of fields, either through the company itself or with any other company in which they hold shares or interests. Okay, that is a lot of areas.

Thinking of one, Of all. – The tagline

Shoki Hoko (Corporate Responsibility to Society), Shoji Komei (Integrity and fairness) and Ritsugyo Boeki (Global Understanding Through Business) are the three prime philosophy pillars of this Global Brand.

About Mitsubishi
Mitsubishi Mission
Mitsubishi Facts
Mitsubishi Business Model
Mitsubishi Unique Aspects
How does Mitsubishi make money?
FAQs

About Mitsubishi

Mitsubishi logo
Mitsubishi logo

Mitsubishi is an Integrated business enterprise with offices and subsidiaries in 90 countries and approximately 1,700 group companies worldwide. Their 10 business groups are engaged in a wide range of businesses across virtually every industry, ranging from natural resources to the items used in everyday life. Mitsubishi manages a variety of operations in locations across the globe working to achieve sustainable growth for the company and Society.

Mitsubishi evolution

Mitsubishi Mission

Their mission is to provide optimal business solutions to societal needs. Their food and consumer goods businesses help provide a stable supply and resources for everyday life. Engaging in each link of the supply chain, from the production of raw materials to processing, logistics and sales, we provide products that are safe, secure and highly traceable. In the fields of mobility and infrastructure their operations support the sustainable growth of cities. These include Automotive business, airports and other businesses that facilitate the smooth flow of people, goods and data as well as dedicated urban development projects.

The company has vehicle manufacturing facilities in Japan, the Philippines, Thailand, and Indonesia, and 12 plants co-owned in partnership with others. Mitsubishi has had a 30-year-long association with actor Jackie Chan, who has used their vehicles almost exclusively in his movies throughout his career.

They also invest in mineral resources and metals projects which are vital in so many ways to the growth of prosperous cities. Energy and power essential for both quality-of-life and industrial development, Operations there include liquefied natural gas or LNG as well as wind power and other renewable energy businesses. By providing a stable supply of energy and power they are helping to realise Sustainable societies. Having their roots in trade, Mitsubishi Corporation has flexibly adapted their business models in line with the ever-changing needs of society. Once again we are in a new era, this one Defined by innovative digital technologies. In order to continually evolve as a company they are taking on new challenges in this space as well. Since their Foundation the three corporate principles have underpinned our commitment to create a new value hand in hand with society.

Mitsubishi Facts

  • The Mitsubishi logo was derived from the flag design of its shipping company predecessor. The three triangles are actually based on the shape of a water chestnut. In Japanese, the word for three is “mitsu,” and the word for water chestnut is “hishi.” However, “hishi” is pronounced as “bishi” when used in the second half of a word. The combination generated the name Mitsubishi.
  • The logo design, originally created for the shipbuilding company, was based on a blending of two family crests. It existed for many years before the automotive manufacturer’s version was trademarked in 1914.
  • Sold in over 160 countries around the world, Mitsubishi has established itself as the 16th largest automotive manufacturer in the world. Over the years, Mitsu has partnered with other leading brands including Volvo, Chrysler, and Hyundai to produce vehicles sold around the globe.
  • In 1976, Mitsubishi developed the Silent Shaft engine, reducing vibration in 4-cylinder setups. After patenting the groundbreaking technology, they then licensed it to several other big-name manufacturers including Porsche an Saab.
  • The Mitsubishi brand name was not introduced in the U.S. until 1982, when their sedan, the Tredia, and coupes, the Cordia and Starion, hit the scene. When sales started out, Mitsubishi’s cars were sold through 70 dealers in 22 states. But by the end of the ’80s, the company had run its first U.S. ad campaign and significantly increased its presence.
  • Speaking of Guinness Book records, Mitsubishi beat five of them in 24 hours in 2011. Taking their newly released Outlander and Outlander Sport to remote Canada, they racked up a series of unrivalled achievements in one day.
  • Greatest distance driven by a vehicle in reverse on snow in 30 seconds (300 meters)
  • Shortest braking distance by a vehicle on ice (56.2 meters)
  • Most vehicle figure eights on ice in two minutes (3 laps)
  • Fastest vehicle slalom relay on ice (1 minute, 11 seconds)
  • Fastest driven square lap (19 seconds)

Mitsubishi Business Model

Mitsubishi Corporate Strategy Model 2021
Mitsubishi Corporate Strategy Model 2021

Midterm corporate strategy 2021, showing business portfolio (Business management model)

This business portfolio shows clearly that the most business of the company comes from the mineral resources area and the second most investment balance is in motor vehicles, machinery and equipment and steel. Investments that show an upward trend in these times are

  • Mineral resources
  • Natural gas
  • Meat, Fish and Vegetables
  • Grains and Food raw materials

Mitsubishi Unique Aspects

The reason behind this up jump In investments can be the unprecedented times we all are facing, that is the pandemic. Also, the future lies in electricity and is going to be about sustainability development and natural resources. So, the company wants to invest in the future via the course available through their widespread businesses. We can also see a downward trend in the retail business because of the Covid-19.

Mitsubishi planning reorganisations across fields of its presence(Mitsubishi Midterm 2021)

The company revealed in the annual business portfolio that the company will be forming more business groups for the likes of natural gas, industrial materials, Petroleum and chemicals, Minerals etcetera. While the LNG demand is rising because it is the prime resource in the power and industrial sector in the Japanese market, Their mission is to tap this demand via adjustments or betterment in the present scenario to be in sync with the rising demands.

Industrial materials are an ever increasing competitive market and diversifying materials are likely to provide the opportunity of diversification. The company is planning to redefine the role that they play In this scene. The food industry faces challenges of diversifications. Mitsubishi plans to tap this trouble too by introducing more stable and sustainable business models around this field. To calm societal problems around supply chain management. With the same target to spearhead into solutions, Mitsubishi also plans to jump around some stuff here and there in the Consumer Industry, Power solutions and Urban development to make their existing businesses in these domains more efficient and well planned.

Consolidated Net Income 2021

How does Mitsubishi make money?

The Company is actually a group of group of companies stacked together in harmony, Including but not limited to these groups -

  • Natural Gas Group
  • Industrial Material Group
  • Petroleum and Chemical Solutions Group
  • Mineral resources group
  • Industrial infrastructure
  • Automotive-mobility
  • Food
  • Consumer
  • Power Solution
  • Urban development

One of the most prominent or major source of revenue for Mitsubishi is their automotive business, That is known to us as Mitsubishi Cars. They started manufacturing cars from 1917, a luxury vehicle for the government officials. They decided to jump into motorsport with the “Macau Grand Prix” In 1962. With an inception like this, Mitsubishi went through a long history of vehicles, made for everyone. They were sold in America, Japan and eventually spread out in the whole world. From that time, Their Automotive business became a major and prime source of the revenue.

In one of its leading places, North America, The company determined its initial target audience to be consumers under the age of 45, typically married, and with an annual household income above $55,000. Mitsubishi strategised about the best ways to reach this demographic group. The company's solution was to pitch the Galant as an antidote to the drab routines and responsibilities of adulthood. So they came up with a tagline "Wake Up and Drive". After cars this magnanimous giant corp is moving its legs to electric future. Yes, Mitsubishi Electric, a new sustainable approach to transportation that is matching the company's tagline of sustainable future. Truly Thinking of one, of all.

So, we see that the company is totally diversified to too many areas. Be it manufacturing, development, services, transport of all sorts and what not. Let’s look at some interesting data touch points in representation.

Conclusion

  • The company has established itself as a global brand with its strong position in different spheres.
  • It is a group of companies packed together for synergy.
  • It operates heavily on its Automobile business and invests primarily in various sustainable resources.
  • The philosophy of this Corporation has three edges Shoki Hoko (CSR), Shoji Komei (Integrity) and Ritsugyo Boeki (Understanding).
  • It plans to go with the aim of sustainable growth in future, meeting the current pandemic needs.

FAQs

What is Mitsubishi known for?

Mitsubishi is among the top automotive manufacturer that sold in over 160 countries around the world.

What country was Mitsubishi founded in?

Mitsubishi was founded in 1870, Tokyo, Japan.

How much money does Mitsubishi make a year?

Mitsubishi Corporation generated revenue amounted to around 15-16 trillion Japanese yen.

What products does Mitsubishi make?

Mitsubishi products include products in several industries that are:

  • Mining
  • Shipbuilding
  • Telecom
  • Financial services
  • Insurance
  • Electronics
  • Automotive
  • Construction
  • Oil and gas
  • Real estate
  • Foods and beverages
  • Chemicals
  • Steel
  • Aviation

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