4. Realizing the Trillion-Yen Company
1971-
(1) A Substantive and Excellent Company
- 1979
- As our company began to navigate through the era of low economic growth, we formulated “DENSO Principle for the 1980s” in 1979, declaring our challenge to become a “Trillion-Yen Company.” While pursuing scale expansion, we remained committed to being a substantive and excellent company, striving to balance both quantity and quality.
During the 1970s, after enduring the oil shock and entering a period of low growth, we established new management system guidelines. Emphasizing the creation of “world-best products,” we aimed to sustain growth and were optimistic about concluding the decade with satisfactory performance.
As the 1980s approached, we faced the question of which management philosophy we should adopt. It was time to clarify our new vision for the company.
In September 1979, President Fubito Hirano unveiled “DENSO Principles for the 1980s.” This document set forth the ambitious slogan of achieving a “Trillion-Yen Company.” We declared our goal of reaching one trillion yen in sales by 1989 and securing a stable management foundation in the international market.
Reference：Overview of DENSO Principles for the 1980s
- Deep DiveSignificance of the Trillion-Yen Company
- The decision to set a quantitative target of “one trillion yen in sales” was made with the belief that this slogan would be the most appropriate to inspire and unite our employees as we entered the 1980s.
At that time, there were still few companies in Japan’s manufacturing sector that exceeded one trillion yen in sales. The term “trillion-yen club” was also in use, and becoming a trillion-yen company signified joining the ranks of highly prestigious companies.
However, this was not a reckless pursuit of expansion. The company's objectives within the guidelines emphasized our primary commitment to contributing to the development of domestic car manufacturers as a specialized automotive parts company.
- Deep DivePresident Hirano's Commitment
- The clear goal of becoming a “trillion-yen company” was not merely a pursuit of “quantity.” During the announcement of the guidelines, President Hirano emphasized, “A trillion yen without substance has no meaning. It must be a trillion yen accompanied by the emergence of new technologies, improved quality, cost reductions, and strengthened corporate structure.”
As we entered the 1980s, the societal demand for “harmonizing energy conservation with economic growth” became increasingly prominent. With this in mind, our growth strategies prioritized advancing development strategies that anticipated the technological trends required for energy-efficient automobiles.
To build a stable management foundation in the international market, we set a target of achieving a 20% sales ratio in overseas markets within ten years. To realize this goal, we also focused on the early development of personnel suitable for the international era through overseas assignments and training programs.