Case study

Introduction

Johnson Controls–Hitachi Air Conditioning was established on

October 1st, 2015 as a joint venture between Hitachi Appliances,
Inc. (now Hitachi Global Life Solutions, Inc.) and Johnson Controls,
Inc. Hitachi Appliances carved out and contributed its air
conditioning business to the Joint Venture. Johnson Controls
acquired a 60% stake of the carved-out business and Hitachi Global
Life Solutions, Inc. continues as a 40% shareholder of this venture.

Hitachi exceed customer expectations with the most diverse range of

HVAC products in the world – from ductless solutions to chillers to HVAC
room air conditioning systems, fueled by industry-leading technology and
innovation.

With the joint venture of Johnson controls and Hitachi, two rich,
100-year-old cultures and histories have come together to create
one exciting new company, serving combined customers with the
most diverse product portfolio in the air conditioning industry.
Vision
 A safe, comfortable and sustainable world.

Mission
 Honesty and transparency.
 Hitachi upholds the highest standards of integrity and honor
the commitments that it makes.

Portfolio
 Residential ac
 Commercial ac and refrigerator
 Large tonnage ac
 Compressor

Initiatives on environmental protection

and improvement
Japan

We received the Environment Minister's Award for Global Warming

Prevention Activities 2016 by the Ministry of the Environment of
Japan for developing FLEXMULTI air-cooled multi-split air
conditioning system for buildings (high efficiency type), which
reduces CO2 emissions with leading energy-saving technology.

India

Johnson Controls and Johnson Controls-Hitachi Air Conditioning

India Ltd. jointly participated in The Indian Green Building Council’s
flagship event “Green Building Congress 2016” in Mumbai. Our
booth attracted around 5,000 visitors during the 3-day event
Taiwan(2018)

many employees from Johnson Controls-Hitachi Air Conditioning

Taiwan Co., Ltd. gathered with their family members at the beach
near the Pushin Creek estuary in Taoyuan City, Taiwan. Participants
collected a total of 970 kilograms of trash and 1,690 kilograms of
recyclable garbage together with distributors, community volunteers
and their family members.
Johnson Controls-Hitachi Air Conditioning conducts a variety of sustainability activities in pursuit of its
vision of “a safe, comfortable and sustainable world
Johnson Controls-Hitachi Air Conditioning works on various activities to contribute to society internally

and externally, globally and locally. Our activit ies include diversity enhancement, disater relief,

charitable donations, education and more.

Challenges faced by Hitachi in modern retail

outlet:
 In multi brand outlets it was difficult to sell Hitachi ac as its pricing
was higher than the other brands.
 Customer service is the most important part of sales so it couldn’t
cope up with the customers demand.
 Customers do not get easily convinced for Hitachi because of its
price.
 Since it is a premium brand it is not easily affordable by middle class
people.
 It has few number of service outlets.
 Due to lack of stock Hitachi loose customers at the time of
main season.

 Display models are less as compared to other brands.

 Solutions

Their problem was solved because of certain steps taken by

the company:

 Proper training to employees

.
 During the season it offered good discount offers
 To solve the problem of installation they hired more
technicians/engineers so customer do not need to wait for
number of days
 Display models were increased by mailing to cluster manager
of store.

After making these changes, the output was good. Sales were
increased by 40% which is profitable for the company Hitachi.
Customers have given positive feedback and moreover they
were happy from the services of Hitachi.