00:00Those are IT services and consulting, which accounts for around half of their revenue.
00:05Their second biggest category is their device business, which accounts for around 25% of their
00:11total revenue. After that, we have their electronic components business, then finally their mobile
00:17business. I should also mention that Fujitsu isn't just a Japanese company. They operate globally.
00:22Right now, they have over 100 locations worldwide with over 140,000 employees.
00:28So now that we know what they sell and what their history is, let's go ahead and talk about
00:34the Fujitsu business model. The first thing that I want to talk about is how they compete
00:39against other companies. I mean, there's really no question about it. Fujitsu competes in highly
00:44competitive industries, whether it's the mobile carrier industry in Japan or the IT services
00:50industry. So in order to succeed, they need to have some kind of competitive advantage.
00:55What they have chosen to do is leverage their size. You see, it's very expensive to start
01:00a mobile network from scratch. It requires billions of dollars worth of investments to
01:05build all of the infrastructure. And this is why there are only a handful of mobile carriers
01:10in any given country. There's just no room for many small players. Same thing applies to
01:16the IT services industry. You need to have huge teams of engineers and consultants to service
01:21big enterprise clients. Again, not much room for small players. So leveraging their massive size,
01:27both in terms of resources and expertise, has allowed them to survive in such competitive markets.
01:34Next, I want to talk about something that I noticed while reading about Fujitsu,
01:38and that is that they have made great efforts to become more customer-centric over the years.
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