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Study on the competitiveness of Japanese household electrical appliance industry based on Diamond Model

Author: ChangHaiShen
Tutor: LuYaQin
School: Yunnan University of Finance
Course: World economy
Keywords: Japanese Home Appliance Industry Diamond Model Competitiveness
CLC: F416.6
Type: Master's thesis
Year: 2013
Downloads: 54
Quote: 0
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Abstract


During the last decades, the Japanese home appliance industry stuck to gainmore and more market share around the world by putting high value on R&D and leanproduction, under the condition of homeland natural resource shortage. It createdmany world famous brands, such as Panasonic, SONY, Hitachi, Toshiba and manybrilliant business leaders, such as Matsushita Konosuke and Morita Akio. Not onlythe Japanese home appliance company earned the world market, but also spread itsbusiness culture around the world.The whole Japanese home appliance industry suffered big loss during the2010-2011fiscal year, many of them will split of bad assets. Actually the Japanesehome appliance industry started to comedown long time ago. Its market share hasbeen gradually given place to Korean and Chinese competitors. Nowadays, theJapanese home appliance industry has lost almost all the market share in householdappliances filed and television sector suffered big deficit, and this sector is too big tofall. In consumer electronics area, innovation degeneration caused lower marketdemand. Only the semi-conductor and electronic devices and components sector stillhas the world class competitive power.The falling down of the Japanese home appliance industry is complicate process.The concentrated syndicates have highly suppressed the development of smallenterprises and its inner innovation power. The former successful manufacturingexperience has restricted its process reengineering.20years ago, the Japanese homeappliance industry missed the digital revolution and they seem can hardly catch upwith the process of intelligence wave. The Japanese home appliance companies usedto be the imitative and pursuant objectives for Korean and Chinese competitors.Nowadays the falling of the Japanese competitor becomes well reference for them.This paper will use Michael Porter’s “Diamond Model” to analysis thecompetitive power of Japanese home appliance industry starting from production factors to demand conditions, enterprise strategy and structures, competitors, chancesand government behavior. At the same time, by comparing Japanese home appliancecompanies with their Korean and Chinese competitors and combining with the historyof international industry development, this paper indicate that there are many aspectsthat the Japanese home appliance industry lacking competitive power, such as highhuman cost, few-children in families, aged tendency of population, innovationenvironment worsening, low-profit competitive strategy, value hardware and scornsoftware, judge others by oneself and so on. According to this disadvantage, thispaper advises Japanese home appliance industry to carry out self-improvement, suchas actualize global industrial transfer, process reengineering and push industrialupgrading.Although the Japanese home appliance industry lost its global competitive powerin many fields, it still accumulated advanced technology and rich management skillsafter decades’ development. If the Japanese home appliance companies can resumethe spirit of overtaking advanced enterprise and keep the mind-set of modest learning,improve business process, borrow ideas from Korean and Chinese competitors, theymay gain long term global competitive power in high-end home appliance andconsumer electronics sectors.

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CLC: > Economic > Industrial economy > The world's industrial economy > Industrial sector economy > Electrical and electronics industry
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