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Onoken co.,ltd.
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Strategy for Growth
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Outstanding distribution network enabling rapid delivery of a wide range of products
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The customer-first principle: To deal sincerely with a client, whether the order is large or small
   Onoken's stockyards, which store a wide range of iron and steel products as well as construction materials, are administered under its own management. Upon receipt of an order, the flexible distribution system starts working through alliances with exclusively contracted transporters. Ten-ton trucks depart from the stockyards each day, delivering orders that may start at a single bar of steel. To ensure a conscientious level of service, delivery of an order is given priority over receiving supplies at the yard.
   Our competitive advantage stems from our extensive product range and our ability to make favorable product proposals. The stockyard and distribution systems enable us to combine these two strengths effectively. Exploiting these strengths has enabled flexible export and import strategies in response to global conditions; a broad product portfolio including construction materials; a wide-ranging ability to gather information; locally rooted sales forces; cost reductions through large-volume purchasing; and a supermarket-type business format that Onoken is now promoting. We are endeavoring to promote an image as a general store of steel and construction materials. We acquire our strong presence from our reputation. Our clients will say: "Why not go to Onoken? You can get everything there."
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Onoken focuses on boosting market share in its existing territories.
Market share trends in the Kyushu region
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   Onoken exploits its well-provisioned stockyards and distribution system to prioritize expanding market share and sales territories.
   We aim to increase market share in the Kyushu and Chugoku regions, where we have maintained a client base for many years. Specific actions will include cultivating user markets with a strategic downstream approach, promoting sales of surface-treated and stainless steel plates (areas we have not focused on previously), and increasing value-added sales of fabricated items. By taking these actions, the current goal is to raise market share in the Kyushu region. It is our large-scale stockyards that make this strategic development feasible.
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Expanding sales territories in East Japan around the hub of the Urayasu Center
   Tokyo branch's Urayasu Center was established in 2001 as a base for expanding business into East Japan. By 2004, it had moved deep into adjoining regions, and a stockyard was completed with a total floor area of 16,000 square meters-one of the biggest in Japan. The Kawasaki Center opened in 2010, becoming the second stockyard in the Kanto Plain. The greatest feature of both centers is that they can stock a wide range of high-volume products to cater to the small-scale user. In the future, too, we aim to exploit this advantage and actively undertake expansion north of the Kanto plain. In metropolitan areas we will mainly cultivate demand from large-scale users and expand company functions through alliances with manufacturers. In the Tohoku, Hokuriku, and Hokkaido regions, we aim to pursue existing customers and enhance performance and trust, thus further promoting sales. We will pursue deeper customer relations in Tokyo, and expand north of Tokyo. This is the basic strategy of our expansion into East Japan.
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East Area
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All contents copyright 2011.Onoken co.,ltd.
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