2007/9/2 23：59
The toughest competitor, the Samsung 分類なし
During the WW2, Japan's "ZERO-Fighter" was an awful enemy for American Fighters. After the end of the WW2, the GHQ prohibited Japan to develop and manufacture airplanes.
After while, Japan developed the post-WW2 first civil purpose passenger plane "YS-11."
But YS-11 wasn't soled so well around the world, and Japan argued "we succeeded technologically, but failed commercially." Such argument is nothing more than self-satisfaction or self-deception.
Now, we can hear similar logic as Japan's firms are inferior against South Korea's firms such as the Samsung Group and Hyundai Motor Company.
Although Samsung, a South Korea's flagship business conglomerate whose sales account for around 20% of South Korea's GDP, is commercially overwhelming Japan's competitors, there are some Japanese who argue as follows;
- Since diplomatic ties were normalized in 1965, South Korea has been continuously posting trade deficits with Japan because South Korea need to import parts, components, basic materials, technology, machine tools, plant equipments and so on from Japan for the sake of manufacturing.
- Actually, South Korea is nothing more than an assembler because its export industries still rely heavily on Japan. The more South Korea exports industrial products, its deficit with Japan increases.
- For example, South Korea's trade deficit with Japan hit an all-time high of $25.3 billion in 2006 while it had a trade surplus of $20.9 billion with China in the same period -- effectively paying the money it earned from China to Japan.
- The most obvious example of such South Korea's firm is the the Samsung Group. Samsung is manufacturing utilizing Japan's plant equipments, parts, components and other technology so that it is not a rival of Japan.
Even though above mentioned arguments are correct, they are also nothing more than self-satisfaction or self-deception -- in other words, "masturbation" because profit does matter for profit-making enterprises.
Even if Japan's electronics firms are superior than Samsung in terms of technology, Samsung is posting overwhelming profits than Japan's firms.
It means that Japan lacks ability to let its technology produce profits. There is no doubt that Japan lacks something.
The decision-makers -- customers -- think "Samsung-products are better than Japan's." Customers purchase Samsung-products rather than Japan's. That's all.
It may be true that Samsung purchases and installs made-in-Japan machine tools and equipments in its plants, and purchase made-in-Japan parts, components, basic materials for manufacturing.
But even so, it is customers who select the Samsung-products rather than Japan's. Japan should accept the fact of "we are losing against Samsung."
It seems that Samsung is better than Japan's competitors in decision-making of investment and product-injection into market.
Namely, even if it is inferior with Japan in terms of technology, Samsung is superior in terms of "operational skill" and "management" to realize what customers wants timely and affordable prices.
If it continues above mentioned "masturbation," Japan won't be able to take necessary countermeasure, and further loses against Samsung.
For the sake of effective counterattack, Japan should review management priorities to seek out new fields that will serve as main commercial engine.
For example, which kind of products will be more attractive in the China's market, "highly priced products with premier quality" or "more affordable priced one with moderate quality"?
It is likely that many Chinese will prefer later one. If Japan argues that "Our products are made with the best technology. Our products have the best quality and function," what does matter is "cost-performance."
If Japan fails to stop technological "masturbation," Japan's firms could face tough competition not only against Samsung but also newly rising China's competitors.
And if Japan fails to sense the urgency, the whole country will face and suffer extremely difficult conditions in near future.
Japan should not despise Samsung as "nothing more than an assembler," but respect and follow its ability and managerial skill.
For your ref.>Samsung's woes
>"SOUTH KOREAN JOURNALIST SYMPOSIUM. China's rise may force Tokyo, Seoul to reassess business tie-ups"
After while, Japan developed the post-WW2 first civil purpose passenger plane "YS-11."
But YS-11 wasn't soled so well around the world, and Japan argued "we succeeded technologically, but failed commercially." Such argument is nothing more than self-satisfaction or self-deception.
Now, we can hear similar logic as Japan's firms are inferior against South Korea's firms such as the Samsung Group and Hyundai Motor Company.
Although Samsung, a South Korea's flagship business conglomerate whose sales account for around 20% of South Korea's GDP, is commercially overwhelming Japan's competitors, there are some Japanese who argue as follows;
- Since diplomatic ties were normalized in 1965, South Korea has been continuously posting trade deficits with Japan because South Korea need to import parts, components, basic materials, technology, machine tools, plant equipments and so on from Japan for the sake of manufacturing.
- Actually, South Korea is nothing more than an assembler because its export industries still rely heavily on Japan. The more South Korea exports industrial products, its deficit with Japan increases.
- For example, South Korea's trade deficit with Japan hit an all-time high of $25.3 billion in 2006 while it had a trade surplus of $20.9 billion with China in the same period -- effectively paying the money it earned from China to Japan.
- The most obvious example of such South Korea's firm is the the Samsung Group. Samsung is manufacturing utilizing Japan's plant equipments, parts, components and other technology so that it is not a rival of Japan.
Even though above mentioned arguments are correct, they are also nothing more than self-satisfaction or self-deception -- in other words, "masturbation" because profit does matter for profit-making enterprises.
Even if Japan's electronics firms are superior than Samsung in terms of technology, Samsung is posting overwhelming profits than Japan's firms.
It means that Japan lacks ability to let its technology produce profits. There is no doubt that Japan lacks something.
The decision-makers -- customers -- think "Samsung-products are better than Japan's." Customers purchase Samsung-products rather than Japan's. That's all.
It may be true that Samsung purchases and installs made-in-Japan machine tools and equipments in its plants, and purchase made-in-Japan parts, components, basic materials for manufacturing.
But even so, it is customers who select the Samsung-products rather than Japan's. Japan should accept the fact of "we are losing against Samsung."
It seems that Samsung is better than Japan's competitors in decision-making of investment and product-injection into market.
Namely, even if it is inferior with Japan in terms of technology, Samsung is superior in terms of "operational skill" and "management" to realize what customers wants timely and affordable prices.
If it continues above mentioned "masturbation," Japan won't be able to take necessary countermeasure, and further loses against Samsung.
For the sake of effective counterattack, Japan should review management priorities to seek out new fields that will serve as main commercial engine.
For example, which kind of products will be more attractive in the China's market, "highly priced products with premier quality" or "more affordable priced one with moderate quality"?
It is likely that many Chinese will prefer later one. If Japan argues that "Our products are made with the best technology. Our products have the best quality and function," what does matter is "cost-performance."
If Japan fails to stop technological "masturbation," Japan's firms could face tough competition not only against Samsung but also newly rising China's competitors.
And if Japan fails to sense the urgency, the whole country will face and suffer extremely difficult conditions in near future.
Japan should not despise Samsung as "nothing more than an assembler," but respect and follow its ability and managerial skill.
For your ref.>Samsung's woes
>"SOUTH KOREAN JOURNALIST SYMPOSIUM. China's rise may force Tokyo, Seoul to reassess business tie-ups"
