In order to avert the effects of such disasters, Daikin announced the implementation of FUSION15 in June 2011. FUSION15 is a management strategy that focuses on increasing sales in large markets such as China, the US and Japan while significantly expanding the sales in emerging markets such as Turkey, Vietnam and India. Daikin’s chemical business in China was accelerated to produce the highest possible sales and earn the highest possible income.
As sales are increased, Daikin developed management strategies to maintain high profitability by implementing measures that would absorb the increasing prices of raw materials, minimize the adverse effect of East Japan’s earthquake, and reduce the fixed costs to correspond to the declining demand for air conditioning units in Europe. These management strategies kept Daikin’s sales and profits high.
Future recovery is still uncertain, so Daikin focused on short-term profits for 2012 while FUSION15 takes care of all the other management issues. The main strategy is still increased revenue and increased profit on towards 2013. For 2013, Daikin has set the goal of ¥130 billion in operating income through the implementation of FUSION15.
The other management issues faced by Daikin are how to sustain and expand the air conditioning business in China and Europe and how to take advantage of the potential of emerging markets. Furthermore, Daikin will continue to capture volume markets where the company has been doing well in recent years.
Daikin’s chemical business is also set to accelerate, gain momentum, and advance globally as demands are created in China. The goal is to be number one in the world as production is increased in order to serve the Chinese and US markets.