And the decline of the electronics industry, the decline of the automobile industry in Japan

I now just read the September Hitotsubashi University Business Review, "it said a lot about electronics industry's decline ".

I thought a little after I read it.
Price and Profite is not absolute, heavily influenced by competition.
Japanese Electronics industry, in 1990 or later, competes vigorously with Korea and Taiwan, and reduced the monetary value.
LCD industry, from around 2000, reduced the monetary value as well.
In contrast, the automobile industry doesn't competes vigorously with Korea and Taiwan. Korea Hyndai,Kia was not big riavls. Rivals for japan were American"the Big Three which is so full of problems" and Europe "workers do not work for a long" .

However, since around 2010, the environment is likely to change significantly.
China become the world's largest market, as production plants in the world in 2010 is likely.
The Nisusan began production in Thailand, and Others also are getting production in Southeast Asia.
Automotive industry will be subject to serious challenge for the first time from developing countris.

[Japanese companies plant - in Thailand VS in Japanese ]
Of a very nasty fight this time, Japanese companies factories and plants in Japan compete with ones in Thailand or Chaina .
At last, a company thrive.but a nation might perish.

 The Taiwan company is rapidly catching up.Japanese companies have teamed up with Taiwan companies and provided the technology to Taiwan firms aggressively

Japanese companies provided the technology to their factories in Thailand and China to compete with other's factories in Thailand and China. We will notice that factories in Japan and Thailand are not big differences .

[ Dilemma of Innovation from the lower models]

Toyota earned much in the U.S. market with the luxury Lexus. Toyota now became a company which makes luxury cars instead of a cheap car . Once these companies become as it, it is difficult to make a cheap car.

Toyota creating a high performance car such as the Prius. but But it is within expectations. They can not avoid the innovation dilemma . Toyota will suffer from the cheap ,lower model car as a scenario of innovation dilemma .

[Luxury goods - the business cycle - the width of a large]

Toyota is shifting the source of the profit to the luxury market.but the luxury goods business cycle is larger in width.

It will be booming. some people shift to middle goods from cheap goods, some people shift to cheap goods from non buy.
Total, plus or minus is offset. the magnitude of the variation is small.

In Recession . more people can't buy.but some people shift to cheap goods from middle goods.
Total, plus or minus is offset. the magnitude of the variation is small.

In booming,Luxury goods sells is very good.but in Recession, it became very worse.

Total, plus or minus is not offset. the magnitude of the variation is greater than the width of market.

Toyota people are unaware of the risk "a much larger magnitude of the variation in sales" which be due to changes in their business.

英語の練習も兼ねて、書いてみました。