Chapter 18, Problem 18CR

Summary Introduction

Case Summary:

Japanese electronics firms including Sony, pioneers of the industry, once on the pinnacle are now hardly making any profits and finding it difficult to stay in the race. Failure to- innovate, adapt to global changes, bring in cultural change are found to be reasons for this. Change is required for the Japanese companies to survive.

Characters in the case:

Sony electronics, Apple are a few companies discussed in the case.

Former Sony executive Yoshiaki Sakito is also cited here.

Adequate Information:

In the period from the 1970s to 1990s, Japan was introducing new innovations every year in the field of consumer electronics. Abundant, inexpensive labor was available which helped keep costs low and prices competitive.

Since 2000, by more than half Japan’s share of electronic goods and services in the global market has reduced. Sony though mastered the digital music player technology before Apple, could not introduce it to the market before the iPod.

To Determine:

The reason why the Japanese electronics industry is no longer successful.