The company grew rapidly and became a market leader in the electrical and electronic industry. However, the organization became more bureaucratic. The company continued to be innovative in the early years, producing many firsts in the industry. However, It lost its innovator image in the 70’s . Numerous leading products in the electrical and electronics areas. Examples includes Japan’s first vacuum cleaner, first fluorescent lamp, first radar, etc. Two Japanese electrical equipment manufacturers merged in 1939 to create Toshiba. We, the Toshiba Group companies, based on our total commitment to people and to the future, are determined to help create a higher quality of life for all people, and to do our part to help ensure that progress continues within the world community" Technological innovation accounted for the companies’ successes. One of the founders was the so-called Edison of Japan. Main products included transformers, electric motors, light bulbs, radio receivers, and cathode-ray tubes. Toshiba shifted direction by investing heavily in IT segment. The organization became increasingly global, employing 190,000 employees world-wide with annual sales over ¥ 5 trillion. IT focus, diversification, innovation and globalization are four key elements of Toshiba’s corporate strategy. Toshiba is intensively focusing on IT-related business (i.e. telecom and internet), meanwhile, leveraging its legacy businesses to generate stable income Founded as a joint venture in 1996, construction was completed in 1997. Conducted accurate market forecast and implemented just in order inventory management. Inventory turn-over less than two days. Made profit the next year. Focused on high profit margin PJTV segment, and competed on technology, service and management rather than price. Strengthened customer service Revenue and profit grew 50% annually. Became the No. 1 market share leader in PJTV segment.   Toshiba decided to relocate its digital TV production to Dalian and invested ¥300 million to expand capacity from one million units to 1.5 million units exported 800,000 units to Japan. Zero in on the high end, high profit segment of CRT TV market with a strong brand able to command price premiums Not in a strong presence in unit market share, but the top brand when consumers respond for the brand quality and reliability Corporate philosophy unwilling to sacrifice profits for larger market share (vast different from Chinese players) Future target focused on higher end, cutting edge technology TVs e.g. PJTV, Digital TV, LCD and PDP which have significantly higher profit margins.