News
Information
Porter Prize Winners 2024
Porter Prize Winners 2024 (in alphabetical order)
ADVANTEST CORPORATION
(A semiconductor test equipment manufacturer)
https://www.advantest.com/en/
Hulic Co., Ltd.
(A real estate holding, leasing, sales and brokerage company)
https://www.hulic.co.jp/en/
ISOWA CORPORATION
(A manufacturer of corrugated machinery)
https://www.isowa.com/
Japanet Holdings Co., Ltd.
(A mail order and TV shopping company)
https://corporate.japanet.co.jp/en/
ADVANTEST CORPORATION
Advantest Corporation is a global leader in automatic test equipment for the semiconductor industry. The company focuses on: (1) semiconductor and component test systems; (2) mechatronics (test handlers) and test system peripherals; and (3) services, customer support, and system-level test products, among other things. Advantest undertakes the manufacturing, sales, and R&D of semiconductor and component test systems, and provides maintenance and after-sales services to its customers.
The company, which specializes in the high-end segment, has been able to far outperform the competition in terms of sales by providing higher-value solutions than its competitors. This was achieved largely by leveraging the following four strengths. First, Advantest has led the steady evolution of testing equipment. This has required constant efforts to advance leading-edge technologies through a continuous commitment to research and development. From its earliest days, the company's key strategy has been to establish relationships with semiconductor companies (including startups) possessing expertise in cutting-edge technologies.
Second, Advantest promotes the modularization and platformization of its devices, thereby ensuring expandability and compatibility, while controlling the system's complexity, achieving customization, and providing long-term solutions for the customer. Third, the company can respond to global needs as well as horizontally divided customer segments. For many years now, Advantest has been building an operational structure that would allow for both cross-regional and cross-departmental collaboration, achieved primarily through the acquisition of companies through cross-border M&As and subsequent business integration.
Fourth, Advantest is a "one-stop shop" for test solutions. The company's test cells integrate peripheral devices with semiconductor test equipment, to improve testing precision and efficiency.
In addition to making long-term investments in cutting-edge research, the company keeps track of the marginal profit for each product and manages business divisions by focusing on the return on invested capital (ROIC). Consequently, the company has withdrawn from some businesses. With the aim of speeding up decision-making and execution, Advantest is promoting: (1) localization and the transfer of authority to the locally hired top executives of overseas subsidiaries; (2) the formation of global teams for internal functions; and (3) the multinationalization of management meetings.
Hulic Co., Ltd.
Hulic Co., Ltd. is engaged in the real estate business. The company focuses on medium-sized office buildings located within a five-minute walk to the nearest train station in Tokyo. Most of these office buildings are in Tokyo's five central wards. The main tenants of these medium-sized buildings are small and medium-sized enterprises. The vacancy rate of the company's office buildings has been consistently low because of Hulic's deep customer base and the favorable locations of its building. Even during the 2008 Financial Crisis and the coronavirus pandemic in Japan during 2020 -2022, the vacancy rate was significantly lower than the industry average. The company has acquired the highest-level environmental performance rating and a superior disaster response performance rating, achievements not often seen in medium-sized office buildings. It sets its own earthquake resistance standards, which surpass the level stipulated by the Building Standards Act. These indicators not only demonstrate a strong building performance, but also contribute to the competitiveness of the company's office buildings.
To build a good asset portfolio in its real estate business, the company places importance on speed. The ability to make quick investment decisions is possible because of Hulic's small organization (222 employees as of December 31, 2023), comprised of professional personnel who share easy-to-understand strategies and clear decision-making criteria.
One of the criteria the company uses to make investment decisions is productivity per employee. To maintain productivity at a high level, the company keeps to a minimum its engagement in peripheral businesses, like brokerage activities, facility management and facility operation. In addition, Hulic specializes in business-to-business (B2B), and does not get involved in the condominium business.
Another criterion for decision-making is related to the impact of demographic changes. Office buildings located close to train stations previously were at the heart of the company's focus strategy. In recent years, however, Hulic has begun investing in new types of assets, such as distribution centers that are near the center of Tokyo.
ISOWA CORPORATION
ISOWA Corporation specializes in the development, design, manufacturing, sales and maintenance of corrugated machinery. The company offers a wide range of products and has many patented technologies in the two major fields of corrugated sheet manufacturing machinery and corrugated box manufacturing machinery. ISOWA is a leader in the segment of small-lot, high-speed machines.
The strategy's main feature is its preventive maintenance services, which involve regularly scheduled maintenance calls. In the industry, customers would normally use their machines until they break down, and then have them fixed. ISOWA helps customers understand the value of preventative maintenance. The company explains the losses that are incurred as a result of sudden stoppages or long-term stoppages. ISOWA makes proposals to customers about ways to prevent production line stoppages. This service goes beyond the usual replacement of parts. The company has also changed its fee structure by raising its fee for emergency responses on weekdays and lowering its fee for scheduled repair and maintenance calls on weekends. Not only has ISOWA succeeded in increasing the number of customers that use scheduled maintenance services, it has also monetized maintenance services. The higher level of customer satisfaction achieved through the provision of maintenance services has also led to a growth in sales of new machines.
Usually, customer satisfaction with a service depends on the quality of the staff in charge. ISOWA introduced new initiatives to raise customer satisfaction. First, the company reformed its corporate culture. Next, ISOWA placed a greater emphasis on preventive maintenance services, with the aim of increasing the proportion of scheduled maintenance calls. Finally, in 2006, ISOWA announced the management philosophy of "Creating a company with the best corporate culture in the world that makes us and our families happy." In the new corporate culture: (1) Employees are expected to make proactive efforts to raise customer satisfaction; (2) employees agree to uphold "fairness" as a core value in the workplace; (3) employees are encouraged to take initiative and articulate their own views about the company's strategies; and (4) employees are responsible for identifying latent problems themselves. ISOWA says: "We maintain a corporate culture where everyone's opinion counts."
Japanet Holdings Co., Ltd.
Japanet is a leading mail order and TV shopping company. The company's mail-order business sells mainly household appliances. Japanet also offers a variety of services, including a service that provides water dispensers and scheduled deliveries of bottled mineral water; food distribution services; and a cruise business (Japanet plans and operates luxury cruise tours on chartered cruise ships). The company has no brick-and-mortar sales outlets and does not sell products through other retail stores.
Japanet attracts customers who value quality products, but who are reluctant to research and compare products themselves. The company's emphasis on product quality is the key to strong customer satisfaction. As evidence, Japanet points to the high number of repeat customers.
The first example of the company's uniqueness is its ability to offer a small selection of "best option" products. Japanet diligently searches for quality products on behalf of its customers. In each product segment, Japanet offers a much smaller assortment of products compared with large-scale consumer electronics retailers. The difference is that all items have been carefully selected. One of the benefits of intentionally limiting the number of products carried enables Japanet to offer customers more affordable prices.
The second unique feature is Japanet's multichannel communication strategy. The company utilizes TV, radio, catalogs, flyers, direct mail, and the internet, enabling customers with diverse lifestyles to obtain product information no matter where they are in the country. Japanet intentionally increases the number of points of contact with customers by sending an overwhelming volume of commercials and advertisements through these channels. By internalizing the production of commercials and ads, the company can immediately respond to changes in the market.
The third is the sense of security customers can get through interactions with company employees via phone and email. This is the same sense of security that face-to-face sales transactions would normally produce. Upon request, Japanet employees will provide product explanations and answer questions about how to operate the product after a purchase has been completed. Also, the company arranges consultations to address malfunctions and responds to requests for repair services.
The fourth unique feature is an exceptional level of customer convenience. Japanet makes it possible for customers to complete all transactions from their homes. The company has specially trained staff who make home visits to help customers with all procedures involved in the signing of a cell phone contract. Japanet's services clearly go far beyond the scope of usual mail-order sales businesses.