Strategic Management Analysis: Asahi Glass Co., Ltd.

CHAPTER 1: INTRODUCTION

Asahi Glass Co., Ltd. also referred to as AGC Corp. that origins from Japan, is one of the biggest glassmakers in the global market. But the corporate is way beyond just a glassmaker. Their “business kingdom” are expanding to Electronics, Chemicals, and Ceramics. Some may expect that aspect of the company successful originated from its rich Japanese legacy and control, some may credit the some may ascribe the organization’s prosperity to Asahi Glass productivity and creation and one of a kind creation frameworks, which keeps on end up a portion of the powerful business. In any case, that is just a little aspect of the organization quality. Anyone who plan to imitate AGC’s prosperity must look past its organization and assembling framework. The numerous pieces that include the organization from applications to the board ways of thinking to items, consolidate to make a product development. Thusly, this report is completed to investigate the worldwide corporate methodologies received by AGC.

Founded in 1907, ahead of any other companies in Japan, AGC built a flat glass factory in Amagasaki, Hyogo Prefecture and started the production of flat glass in 1909. Expanding from glass company into Self-sufficient production of chemicals used in everyday life in early 1920. After world war II, the company are rising again as high demand of Glassware for a civil usage such as automotive, or television tube glass. After being a major glass company, or even top tier company in Japan, Asahi Group are expanding their business overseas, that started from India in early 1960, South East Asia in mid 1970, North America in mid 1980, or even challenging legendary glass industries in Europe, by acquiring Glaverbel, a long-established Belgian glass manufacturer and the master of glass manufacturing technology for AGC. Taking over a traditional management spirit to always keep an eye on the global market, AGC expanded its bases in Central, Eastern and Western Europe. Adapting with modernization era, AGC had started to developed a glass to support modern technology such as High Definition Glass, Pyrex Glass, and electronic tempered glass. Amid the collapse of Japan’s bubble economy, AGC aimed to grow into a truly global company. Asahi Glass Foundation established an international prize for the global environment, the Blue Planet Prize, and AGC start production of alternatives to chlorofluorocarbon products to address environmental problems. n 1992, an international prize for the global environment, the Blue Planet Prize was established to honor the works of individuals and organizations who contributed to solving global environmental problems. Over the years, Asahi Glass Foundation has continued to aid such endeavors. Asahi Group also facing the future challenge by having a vision for the company in 2025, that the AGC Group’s Core Businesses will serve as solid sources of earnings, and Strategic Businesses will become growth drivers and lead further earnings growth. In 2025, the AGC Group will continue being a highly profitable, leading global material and solution provider.

The AGC Group sets the group vision “Look Beyond” because the corporate philosophy on which all the business activities and external activities are founded. Also, within the the long-term management strategy “Vision 2025”, designed as Asahi Group’s vision envisioned by the incumbent executives, and also the strategy so as to attain it. The philosophy for the vision the longer term, having perspectives beyond the own fields of expertise, and pursue innovations, not becoming complacent with the established order. Through our philosophy of “Look Beyond”, AGC will still create value worldwide, demonstrating the vast potential of the Group’s entire organization. Moving to the corporate mission, that Asahi are expresses their value that management should offer to global market, and become the ambassador of the organization existence, and also sharing the values as the key ideas that every employee have to share as their core value for every decision take. The shared values given are innovation, diversity, environment, and integrity. The last one is about spirit, that this spirit of the corporate mission have to handed down from the high tier management – to the lower tier.

AGC Inc. is a multi-industry business that operates in many industrial segments. However, their Glassware industry remains the backbone of their operations. Their customers is not only in Japan, but also Global market customers that needed a glassware to their products. From that, Asahi made their company overseas, especially in South and Southeast Asian countries to fulfilled their glass material needs for Automotive, Constructions, and also Electronics. In Europe, AGC enters the market as a solution for European Industries that seeks an alternatives high-quality glass product with a cheaper price than European glassmaker. Asahi build their factory by open their factories there, after acquiring Glaverbel, a long-established Belgian glass manufacturer and the master of glass manufacturing technology for AGC. In general, their market target is a high-technology industry that using high quality glass as their part of material for their products. Named a company like Asus, Toshiba, Google pixel, xiaomi, and Samsung that using Asahi glass products for their LCD phone, and top tier car brand like Toyota, Honda, Mitsubishi, Nissan, Suzuki that using AGC glass for their automotive product in global market, and even non-Japanese car brand such as BMW, Mercedes-Benz, Chevrolet, Ford, SAIC China that use for Southeast Asia CKD market.

As mentioned before, AGC Inc. is a multinational company that based in Japan. Even though the group also expand their business overseas, or even making a Joint Venture partnership with a local industry on their destination country, the industry still bringing the AGC name into their business, and still counted as a Japanese company. From this, it can be concluded that Asahi automatically having their own advantage. Those Japanese brands are becoming their loyal customers due to the ethical business in Japan that called bushido, means that Japanese company must using Japanese products too as shown of support their fellow national company in overseas. This also become one of their marketing campaigns consider Japanese companies that implemented glass material as their component to their material are considerably high. For non-Japanese potential customers, a positive stigma that which has been embedded in the minds of many consumers is about their top-notch quality. Even come with higher price than their competitors, the quality product that Japanese brand offers, including AGC is no doubt about.

Being a living legend multinational company that exist for more than 100 years, doesn’t meant there is no competitor along with the company expansion. Even in Japan domestic market, AGC Inc. have to shares their market with Nippon Sheet Glass (NSG Group) for Glass Industry, including Automotive glass and architecture glass. The foreign competitor company is Saint-Gobain glass that came from France, which a leader for a glass market in Europe, following by Pilkington glass, UK glass company that a company member from NSG Group as their Europe market expansion. In Asia, there are several glass companies such as Hankook glass from South Korea, Fuyao Glass from China, even Mulia Glass that become Asahi competitor in Indonesia. On Chemical Industry, South Korean company, LG Chem, and also Sisecam Turkiye Chemical are Asahi Chemical major competitors. The reason that AGC Group still survive until present time, or even become one of the market leader in glassware industry because the company are expanding more compared to competitors, and also wider their business diversification.

CHAPTER 2: ANALYSIS AND DISCUSSION

      The five forces of competition model

The AGC Inc. strategic management firstly analyses with Using five forces of competition model perspective that uses Porter framework industrial (1979). The first aspect is talking about the bargaining power of supplier. Supplier as a vital component that supplies the raw material, or industrial part that will use for production having a differential bargaining power. The aspects that affecting for the bargaining power is about the supplier quantity, if the company using only one supplier, then the bargaining power for Asahi is low, and also vice versa. One of the strategy to made a supplier diversification that would affect the bargain power is about the location, while building the industrial complex in strategic area would made the supplier more compared to non-strategic area. For AGC Inc., that got a partnership with their supplier that comes from local industry from their factory, besides making good relationship with local economics trade, there is also possibility to make a lower cost due to location aspect that the shipping cost would be lower. An open tender system that made by the purchasing department also made the supplier lower the price, due to price competition between suppliers, while the supplier with cheapest offer are purchased by the department.

The next aspects is the bargaining power of buyer, because consumer plays the most importance role in business cycle. All of the organization income sources are from the buyer or customers, while the bargaining ability that buyer have affected by how many customers that the company have, and how significant the product for the consumers. Smaller and stronger consumer basis means that every consumers gains more power for bargaining with the company. About the customers, AGC have their loyal customers, which are fellow Japanese companies that having their ethical code of business, Bushido. That means Japanese company have to use Japanese products too as shown of support their national company in overseas. Majority of Japanese automotive and electronics brands use AGC Glass as their component for making their products.

Following by thread of new entrants, means that how difficult, or easy that new entrants come to this industry. The power from current company, in this case are heavily determined this aspect, a thread for new entrants is not only about customer shares, but also the product itself, material needed, human resources, and also legal aspects. Rivalry among the existing competitor is also counted for this aspect, that higher the competition inside the competitor, more higher the innovation that have to made. Asahi Glass itself is one of the pioneer on glassmaking brand, for more than 100 years, the company facing many threats from their new competitors. From European Glassmaker who offers finest quality of glass, to the recent Chinese competitors which sells below half price to the market. In Indonesia itself, AGC having face to face competition with Mulia Glass, a local company who sells the products with a decent price. Reasons that the company survive, or even defeat their competitors is because a mixture of high quality, and competitive price. Offering the market with more reasonable price than their European competitors, but also equalling their quality.

Lastly is substitute of product threat, that the competition is not only comes from new entrants or competitors, but also the industry that having a possibility for substitute AGC’s product. This substitute product have a same function with the current product, and have more effectiveness, efficiency, or more costs saver than the existing product. While talking about Glass, it is difficult to substitute, there is no material who even comparing the glass quality and capability, especially for construction, technology, or automotive. The nearest possible substitute is only the plastic glass that made of fibre, or chemical. That the quality of durability and outlook is far below of glass products.

Internal analysis

Internal analysis on strategic management is one in all the methods for measuring the corporate internal environment by assessing their competence, resources, and competitive advantage. Internal analysis is focusing for assess all aspects of the corporate, in this case, AGC Inc. Internal analysis method implementing SWOT aspects (strength, weakness, opportunity, and threats). Using SWOT model for doing internal analysis could be a suitable tool, for encourage wondering about your own organization. For analyzing Strength and Weakness, this aspect is completely internal-oriented focus, by ignoring the external factors like rivalry or economic trends, while Opportunities and Threat is really external oriented, but still needed for doing internal analyze using SWOT method. Purpose for doing internal analysis is identify the corporate strength and weakness, combining with other possible external things that might influence the internal aspects, and aids a strategic of management decision, resulting the execution process for implementing the choice. Aspects from the strength and opportunity are used for gaining internal power maximally, resulting a competitive advantage for the organization, the advantage are gain from the unique values, which the other companies are not have the values. Aspects from weakness and threat, also useful for identifying and minimalizing the company weakness, that implementing the successful ratio of business. By doing internal analysis, usually the company will combine it with external analysis, which measure the external environment by doing PESTLE mode for the organization. External and internal analysis could be a key for gain a holistic data for the organization’s environment. The first thing from internal analysis that using SWOT management is discussing the strength.

AGC having their strength for being a large corporate that can made many types of industry diversification, and also having a huge networking in a global market, that they can easily gain the customers, while the customers itself doesn’t need to ask the quality again, due to Asahi’s reputation for more than 100 year being a glass and chemical industry, and also become the company own brand statement. Moving to the weakness aspects, being a multinational corporate industry doesn’t mean to always an advantage. One of the disadvantages for being a corporate class industry is the decision making, while the bureaucracy of the structural management made the decision-making is slow compared to competitors that have smaller structural, so the bureaucracy for taking the strategic decision is considerably fast.

For the opportunity, third world countries, and also a developing country which is intensively carrying out development is a big deal for AGC. High demand of glass material for automotive and architecture company, but lack of offers from the glass manufacturer. This is the reasons for Asahi to build their glass and chemical factories in many of developing countries such as Southeast Asia, Africa, or South America. The last aspects is threat from competitors, that also following the AGC strategic management. Recently, many glassware companies that also opens their factories overseas as their global expansion plan. Besides that, a price rivalry between each competitor seems looks very fierce, especially from Chinese glass and South Korean chemicals manufacturer.

External analysis

In strategic management, it’s  a phase of the strategic planning process that focuses on factors such as the organization’s customer characteristics, market segments, positioning strategy, competitors, and therefore the company environment. External analysis means examining the environment outside the firm’s firm, including factors such as competitive structure, competitive position, dynamics, and history. On a macro scale, external analysis includes macroeconomic, global, political, social, demographic and technological analysis. Analysing the economic environment requires an assessment of the company’s industrial competitive structure, including the competitive position of the corporate and its major competitors. It also requires an analysis of the character, stages, dynamics and history of the industry. Since many markets are now global markets, analysing the commercial environment also means assessing the impact of globalization on competition within an industry. A country environmental analysis can raise the question: should the company move some of its production facilities to another country. Meanwhile, analysing the macro environment consists of examining macroeconomic, social, government, legal, international and technological factors that can affect companies and their industries. External analysis is importance for doing strategic management. By evaluating AGC Inc. target and their resources, looking the environment outside the organization is a must. Despite looking perfect in theory due to only using Internal is not enough, the organization have to be conscious for external forces that also determine the business cycle. The PESTLE model is uses for analysing external factors. This included Political, Economic, Sociocultural, Technological (Ward and Peppard, 2002), and also Legal plus Environmental. These crucial six factors are while analysing the business. The first aspect that determined is Political aspect, Political factor towards PESTEL is looking how  far a political that leads by government on economical aspect. Those things often included trade agreement, political stabilities, or economic policies on each countries.

Asahi group having their advantages in political aspect, this situation happens due to trade agreement from Japan to many countries, exceedingly towards developing countries, including Southeast Asian countries that become AGC major customers that become trade agreement considerably easier compared to their competitors who might not a Japan based corporate. Moving on to economic factor that having a significant role for a corporate business cycle. This factor includes the GDP growth, interest rate, exchange rate, or inflation rate. For Asahi group, the current situation due to COVID-19 made the company seems not exceeded their yearly target, due to lockdown that made nearly all of economic sector are fall that made a recession. Only few construction still going, and also automotive or technology industry that decrease their order.

The others is social factor that also include the demographic data, culture, and their psychological aspect. These factors are interesting because have a direct effect with the industry. If the company know this aspect perfectly, then the consumer will attached instantly. For AGC Inc., the demographic factor is more determined because of glassware is one of the component as modern humans primary needs. Increasing populations means that demands for housing, technological and vehicles are increase, that also Glass demand as the component for those industries also increase. The fourth aspect is technological factor, that this become the reason for modern industry to developing more product that following current technological trends. Asahi glass is a pioneer for a modern glass industry, with a technological adaptation from Belgian technique on early 20^th century, and still developing to made a tempered LCD glass, safety automotive glass, reusable chemicals, and many more.

Environmental factor also included to this analyse due to major issue about current environment issue such as global warming, animal abuse, pollution, and many more. AGC Inc. are totally concern about this, from that they made eco-friendly material for their products, even including their packaging. The corporate also signed the greenhouse effect agreement for preventing pollution that made a harmful environment. Last but not least, is about law factor that including any legal aspect in economic such as employment rights, consumers rights, copyrights or patents, or law firm. The corporate have to acknowledge the law of each aspect of their businesses, moreover the company is multinational. As a Japanese company, AGC Inc. having no issue about law aspect, this happened because Japan have very strict rule for their company, so they already accustomed with any legal aspect in their destination countries with assistance from their legal department.

Five business level strategy

For running a company, AGC needed the business level strategy to integrating and coordinating their strategies and action to gain a competitive advantage by emphasized core competencies on specific product. The importance of this because the strategies are used for the long term performances. More difficult and complexed the competition, the successful once is achieved is high. Another reasons to use business-level strategy is to make a differences between corporate and the competitors while running a same, or similar type of business. There are five types of business level strategy, while the first one is cost leadership strategy that having a budget, or low cost product that make a good deal for the customers, and also made a high quality rival difficult to compete. The others possibility is when the customers are ordering high amount of products quantity, or just a few customers that become a potential buyer to the products, will forced the company to uses this strategy. Cost leadership strategy typically oriented with a larger margins towards their competitors and infrequently tries to extend its margin by a low cost driving. The next one is differentiation strategy, that the organization having a loyal customers of the products, because the product offered is unique, or important for them. While become a loyal customers, they couldn’t be bothered for a higher price, or rising price offers from the company. Because the company using differentiation strategy for charging a higher price for its products, the quality also must provide in high-quality components. However, the company still gain a high-margin at last due to high cost for making the product, yet the profit margin. The third and fourth strategy is focused cost leadership, and focused differentiation strategy. While focused cost leadership strategy used to position the company comparative with the five powers of rivalry such that enables the firm to acquire better than expected returns like cost administration system. In the other hand, the usage of focused differentiation strategy is to comparative with the five powers of rivalry such that enables the firm to acquire better than expected returns like separation system. Lastly, integrated cost leadership, also known as Integrated differentiation strategy. An adaptability for the company is needed to finish essential value-chain activities and support the capacities that allow them to utilize the Integrated cost leadership in order to producing product differentiation while still consider about cost aspect. Adaptable assembling frameworks, data organizations, and absolute quality administration frameworks are three wellsprings of adaptability that are especially valuable for firms attempting to adjust the destinations of nonstop cost decreases and ceaseless upgrades to wellsprings of separation as called for by the integrated strategy.

In implementation, AGC Inc. strongly uses Integrated cost, that combining two of the elements into a hybrid strategy, while saving the cost for a cheaper product, the company also make a “special” product for a competitive advantage against the others. But for the implementation, many companies, including AGC Group are biased to one aspect compare to another aspect. For example, Asahi and their strongest competitor, Hankook Glass are implementing this hybrid strategy, but Hankook more likely to use Cost leadership, in contradiction AGC choose a differentiation strategy. The other possibilities are using focus cost leadership strategy, that this type of strategy is the company only use research and developing a product to a certain type, without using cost-down strategy at all, or expanding their product to wider market target. This type of strategy just only for a special customer and nearly impossible to expand, unless they adapt Integrated cost leadership and differentiation method.

Competitive dynamics

Competitive dynamics is a competitive movement made by the company to take a continuous action and response in taking time between the individual company and its competitors as well as a favourable market position. While competitive rivalry is an action or movement in response that is carried out continuously to take time between individual companies and their competitors as well as profitable market positions. Market conditions where the competitive advantage of the company is only partially protected from impersonation and impersonation is quite costly. This competitive and response action in this market is designed to find a large market to gain customer loyalty through brand names and carefully control the company’s operations in order to consistently provide the same positive long-term to customers. Impersonation in this market is relatively low and costs more than fast cycle markets. So the dynamics of competition in this market are between slow cycle and fast cycle markets. The main purpose from competitor analysis is to acknowledge and predicted a rivalry, or interactive market behaviour, between competition in businesses to achieve their competitive position in the industry (Caves, 1984). For analysing from competitive dynamics, there are certain aspects that divided into several specifications. The first is theoretical framework for competitor analyse, that include the market similarity, that explained whether the competitor having a similar, or even a same market that cause we have to share. Second things in here is the resources similarity, such as supplier, or raw material quality that will made the product types and quality will be nearly the same. Moving on to the second aspect, that is interfirm rivalry that include action and competitive responds. While the actions is determine the competitors management and act that become the corporate concerns, while response is to response the competitors action that become a threat for the organization.  The third one is AMC model that contains awareness, motivation, and capability model. Awareness model is from the company that aware from their consequence and threat when they running one business model, motivation is realizing their awareness to made another improvement or made a different decision. While capability is the company capable to running the strategy, if their actions still fitted towards the situation or not, or capability to handle the strategic management situation. The last three is a market similarities and competition between companies, resources similarities and competition between companies, and competitive asymmetry and interfirm rivalry that those variables don’t have any sub-variables.

From AGC Inc. implementation, the theoretical framework from competitor that the market similarity for Asahi group is from Japan, that expanding into global market. In the other hand, their competitor such as Hankook Glass, or Saint Gobain also using this strategy for expansion. For resources similarity, the source is slightly different, that some competitors are not taking their opportunity to build a factories in developing countries. From interfirm rivalry analysis that implemented action and competitive responds, is the rising of Chinese economics that makes plenty of Chinese company established for dominating the global market, this including the expansion of Chinese Glass Industrial (Fuyao Group) that planning to invest for a factory in overseas. And the expansion of AGC Inc. that started to build build subsidiaries overseas due to fulfilled the product demand in 1950s. This action makes the company automatically compete with any local producer on each destination countries. Especially in Chinese domestic market.

Talking about the AMC model, The awareness from side effects of Asahi Group ambitions for Global expansion is facing many companies who use similar strategies for expanding AGC. It could resulting a fatality if using wrong decision or failure of implementation. Realizing from the similar and tight market competition, because the segment of market is similar. From that, it could motivate the company to implementing unique value proposition, as a differentiator from the others. The response that explained before is a thought from this motivation of Asahi. For capability aspect, similar resources with competitors that needed for a market expansion could also determine the response strategy. While similar is not the same, AGC Group have to perform their Capability to survive, or dominating the competition. Market similarities is become the reason for a competitive.

For the last three aspects, market similarities that many companies want to enter due to large number of markets, or high demand from its market.  This competitive dynamic often happened to seize and find the market as many as possible. Defending their resource of the company, as the reason of AGC Inc. competitive advantage. Definitely the company are not letting the others, especially the competitors knows their resource from compete in advantage. If all of the company using a similar resource, then the company make another way different to each other for making difference. Even though both Asahi Group and their rival (Saint Gobain Glass, Fuyao Group, etc.) sharing similar market and resources. The interfirm rivalry makes all of the company run a different strategy. That’s why AGC Could be a Living legend company even compete with many others brand.

Type of diversification

AGC Inc. also known as Asahi Group is achieving its status as a one of the biggest flat glass and chemical company in Indonesia, and also one of the major glassware industries in global market with target expansion in South Asia, East Europe, and South America. Started to expand in global market since 1950,  Asahi Group are expanding their company worldwide by building a powerplant overseas. While becoming a pioneer in glass industry, Asahi Group also have some kind of industries diversification to enrich their revenue streams. From Chemicals, Electronics, Ceramics, multi material, or even an multi material businesses. From analysing AGC Group type of business, so it could be concluded that the company running related  constrained category of diversification type.

Main industry from AGC Group is making a glassware for industrial needs, from solar glass for architecture needs, automotive glass for car manufacturer, to flat glass for sub-industrial needs such as household or furniture. These types of commodity are their flagship due to their fine quality and with a more reasonable price compared to European glassware that made high demand of market needs. From 1961, their chemical industry had started by establishing their subsidiary company, AGC Chemical. Now it also supporting their own glass factory need such as propylene oxide and propylene glycol begins for making float glass. Other than that, Asahi Group also having new subsidiaries of AGC electronics, which is an electronic industry that sells their glassware products with additional from modern electronic components.

AGC Inc. is a public company that that enlisted on Tokyo stock exchange that joins on Nikkei 225 (N225) composite, with a code name TYO: 5201. Besides Japan, their subsidiary company in overseas also join inside local stock exchange. For example in Indonesia, PT. Asahimas Flat Glass Tbk. enlisted in Indonesia Stock Exchange with a code name: AMFG.  In June 30, 2020 stock information report, AGC Inc. is able to generate a market cap of JPY 5.616 Billion. As additional information, AGC Group also having partnership with other company in local and international. Being a glassware, chemicals, and electronic industry to manufacturing other company demands.

CHAPTER 3: SUMMARY AND SUGGESTIONS

Some may expect that aspect of the company successful originated from its rich Japanese legacy and control, some may credit the some may ascribe the organization’s prosperity to Asahi Glass productivity and creation and one of a kind creation frameworks, which keeps on end up a portion of the powerful business. Amid the collapse of Japan’s bubble economy, AGC aimed to grow into a truly global company. Is a multi-industry business that operates in many industrial segments. However, their Glassware industry remains the backbone of their operations. From that, Asahi made their company overseas, especially in South and Southeast Asian countries to fulfilled their glass material needs for Automotive, Constructions, and also Electronics. In general, their market target is a high-technology industry that using high quality glass as their part of material for their products. Named a company like Asus, Toshiba, Google pixel, xiaomi, and Samsung that using Asahi glass products for their LCD phone, and top tier car brand like Toyota, Honda, Mitsubishi, Nissan, Suzuki that using AGC glass for their automotive product in global market, and even non-Japanese car brand such as BMW, Mercedes-Benz, Chevrolet, Ford, SAIC China that use for Southeast Asia CKD market. Is a multinational company that based in Japan.

Even though the group also expand their business overseas, or even making a Joint Venture partnership with a local industry on their destination country, the industry still bringing the AGC name into their business, and still counted as a Japanese company. have to shares their market with Nippon Sheet Glass for Glass Industry, including Automotive glass and architecture glass. The foreign competitor company is Saint-Gobain glass that came from France, which a leader for a glass market in Europe, following by Pilkington glass, UK glass company that a company member from NSG Group as their Europe market expansion. On Chemical Industry, South Korean company, LG Chem, and also Sisecam Turkiye Chemical are Asahi Chemical major competitors. The reason that AGC Group still survive until present time, or even become one of the market leader in glassware industry because the company are expanding more compared to competitors, and also wider their business diversification.

From the five forces of competition model, is the aspects that affecting for the bargaining power is about the supplier quantity, if the company using only one supplier, then the bargaining power for Asahi is low, and also vice versa. That means Japanese company have to use Japanese products too as shown of support their national company in overseas. The power from current company, in this case are heavily determined this aspect, a thread for new entrants is not only about customer shares, but also the product itself, material needed, human resources, and also legal aspects. Asahi Glass itself is one of the pioneer on glassmaking brand, for more than 100 years, the company facing many threats from their new competitors. In Indonesia itself, AGC having face to face competition with Mulia Glass, a local company who sells the products with a decent price. Reasons that the company survive, or even defeat their competitors is because a mixture of high quality, and competitive price. While on the internal analysis, by doing internal analysis, usually the company will combine it with external analysis, which measure the external environment by doing PESTLE mode for the organization. AGC having their strength for being a large corporate that can made many types of industry diversification, and also having a huge networking in a global market, that they can easily gain the customers, while the customers itself doesn’t need to ask the quality again, due to Asahi’s reputation for more than 100 year being a glass and chemical industry, and also become the company own brand statement. Moving to the weakness aspects, being a multinational corporate industry doesn’t mean to always an advantage. One of the disadvantages for being a corporate class industry is the decision making, while the bureaucracy of the structural management made the decision-making is slow compared to competitors that have smaller structural, so the bureaucracy for taking the strategic decision is considerably fast.

Looking from external analysis, Analysing the economic environment requires an assessment of the company’s industrial competitive structure, including the competitive position of the corporate and its major competitors. It also requires an analysis of the character, stages, dynamics and history of the industry. Since many markets are now global markets, analysing the commercial environment also means assessing the impact of globalization on competition within an industry. Only few construction still going, and also automotive or technology industry that decrease their order. If the company know this aspect perfectly, then the consumer will attached instantly. The fourth aspect is technological factor, that this become the reason for modern industry to developing more product that following current technological trends. Asahi glass is a pioneer for a modern glass industry, with a technological adaptation from Belgian technique on early 20th century, and still developing to made a tempered LCD glass, safety automotive glass, reusable chemicals, and many more. As a Japanese company, AGC Inc. having no issue about law aspect, this happened because Japan have very strict rule for their company, so they already accustomed with any legal aspect in their destination countries with assistance from their legal department.

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