*I've heard my share of moaning about the Japanese economy, but that's a new one.
*A new one and a scary one, because what are you s'posed to do if you want to
buy some quality electronics?
http://search.japantimes.co.jp/cgi-bin/nn20110101f1.html
(...)
"Japanese firms have watched their dominance plunge across the board, from more than 80 percent in the global LCD panel market in 1997 to 10 percent by 2005, from over 80 percent in DVD players in 1998 to 20 percent in 2006, from 90 percent in car navigation systems in 2004 to 20 percent in 2007, and from 50 percent in solar panels in 2005 to 20 percent in 2007, the report released in June said.
"This is not only about particular companies or industries. (Japanese firms) have lost in every single competition, one after another," METI said in the report.
"Rather, this phenomenon should be recognized as a business model problem shared by many (Japanese) companies. And the speed of the downfall is even accelerating," METI warned.
"The report, titled "Industrial Structure Vision," caught the eye of several analysts in Japan for the frank way METI — the champion of Japan's blazing postwar reconstruction — admitted to the structural problems being created by the technology-oriented and bureaucratic nature of Japanese manufacturers.
"According to the report, Japanese firms manage to grab substantial market share in the initial stage of marketing because their products boast a technological edge. But when it comes to marketing digital products, particularly in emerging economies, (((oh dear – "the Chinese model of development"))) those advantages quickly evaporate.
"The Japanese drew strength from their vertically integrated manufacturing processes, from product design to parts production and assembly. This closed model, supported by Japan's mammoth pyramid-style group firms, was successful at improving product quality and established a high reputation for the "Made in Japan" label all over the world.
"But from the 1990s, the core technologies for many electronic products, including computers, TVs and DVD players, went digital, and with modular components.
"The priorities for gadget makers today are now quick software design, global module procurement, and the ability to assemble a product in any country where cheap labor is available.
"This has rapidly eaten into the relative competitiveness of Japan's pyramid-style manufacturing groups, METI said.
"The pyramid model remains successful in only a handful of fields, most notably automobiles and single-lens reflex cameras, METI said.
"In these two particular industries, the total integration of sophisticated technologies, rather than module assembly, remains critically important — the apparent reason Japanese automakers like Toyota Motor Corp. are maintaining their competitiveness against foreign rivals, the report said...."
