Gartner Research

SWOT: Toshiba HDD Division, Worldwide

Published: 19 February 2010

ID: G00174030

Analyst(s): John Monroe


With the recent acquisition of Fujitsu's HDD division, Toshiba has become the world's fourth largest overall producer of hard-disk drives and was the largest producer of mobile HDDs during 3Q09. This analysis examines key factors that will impact Toshiba during the next 12 months.

Table Of Contents
  • Introduction
  • Company Overview
    • Toshiba HDD Division
  • SWOT Analysis
  • Strengths
    • "Captive" Alliances With Other Toshiba Divisions and Access to Toshiba Cash Reserves
    • Solid Designs, Willingness to Take Design Risks to Create New Markets
    • Consistent Execution, Strong Alliances With Major OEMs, Global Brand Presence
    • TDK/SAE as Strategic ODM, Reducing Fixed, In-House Manufacturing Costs
    • Toshiba's Semiconductor Memory Division as a Partner Supplier of NAND Flash Media
  • Weaknesses
    • Limited Product Offerings, Limited Range of Addressable Markets (Toshiba is Working to Correct This)
    • Too Great a Dependence on Too Few Customers, Limited Internal Manufacturing, Increasing Dependence on TDK/SAE as ODM
    • No Vertical Component Integration, Creating a Higher Cost Structure and Less Cost-Effective Control Over Evolving Technologies
    • Inflexible HDD Manufacturing, Both Internally and at ODM Partner Sites
  • Opportunities
    • Extend TDK/SAE Alliance in Strategic Head Supply and Manufacturing Services
    • Extend Presence in 1.8-Inch and 2.5-Inch Mobile Markets
    • Expand Product Portfolio to Include High-End, Near-Line 3.5-Inch HDDs
    • Expand Product Portfolio to Include Enterprise-Grade HDDs (With the Fujitsu Acquisition) and Enterprise-Grade SSDs (in Cooperation With Toshiba's Semiconductor Memory Division)
  • Threats
    • Senior Toshiba Management Limits or Withdraws Support (Unlikely in the Near Term, Given the Recent Fujitsu Acquisition)
    • Increasingly Competent Competition on All Fronts
    • Failure to Profitably Execute on Technology Transitions
    • Emerging New Technologies Displacing HDDs in Key Applications
  • Implication for Toshiba HDD Division
  • Methodology

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