International business strategy The Japanese Car Industry

Résumé du document

The Japanese Car Industry is aiming to expand its market share across the world. The major manufacturers operate on all continents with production facilities spread all over the world. They have expanded throughout the past 20 years with a combination of Greenfield Investments, Joint Ventures and Acquisitions. Although technology and design are still major factors in competitive advantage, there is a much greater level of cooperation from the top Japanese manufacturers with European and US firms. Most Japanese automotive firms lean towards a multinational structure, with manufacturing, sales and administration occurring in geographic areas, but usually with Japanese top management brought in from the head office. The Japanese have famously brought new work practices into the car industry such as quality circles and Just In Time, which have influenced other commercial organizations as well. Culture has been a key success factor for many Japanese firms, with a trend towards team work. This has proved extremely successful in the manufacturing sectors. However, not all Japanese firms have been successful; Nissan has been ?taken over' by Renault structurally. In this document, we will look into the various aspects as to how this will affect the strategy and have an impact on production and design. With the blend of two different organizations, the resulting hybrid will surely have a distinct character.

Extraits

[...] Long-Term Orientation (LTO) focuses on the degree the society embraces, or does not embrace long-term devotion to traditional, forward thinking values. High Long-Term Orientation ranking indicates the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today's hard work. However, business may take longer to develop in this society, particularly for an "outsider". A Low Long-Term Orientation ranking indicates the country does not reinforce the concept of long-term, traditional orientation. [...]

[...] The Japanese have famously brought new work practices into the car industry such as quality circles and JIT, which have influenced other commercial organisations. Culture has been a key success factor for many Japanese firms, with a trend towards team working. This has proved extremely successful in manufacturing sectors. Not all Japanese firms have been successful; Nissan has been ‘taken over' by Renault structurally. How this will affect the strategy and impact on production and design remains to be seen. As two different organisations, the resulting hybrid will surely have a distinct character. [...]

[...] In years to follow, the U.S would end up importing the very product it invented. Figure 3.1 : Vernon's Product Life Cycle We can utilise this theory in terms of the automobile industry. The US were firm leaders of the market until the Japanese adapted ideas from the British and American car producers in the 1960's, and then offered a superior yet cheaper product. This is why Japan used to import so many automobiles yet now has more of an advantage on exportation. [...]

[...] Nissan 6. Key Success Factors- Honda 1. Structure 2. Product Strategy 7. Conclusions 8. Appendices A PLEST B SWOT C Culture 9.0 References and Bibliography Executive Summary The Japanese Car Industry is increasing to take market share in all areas of the world. The major manufacturers operate on all continents with production facilities spread across the world. They have expanded throughout the past 20 years through a combination of Greenfield Investments, Joint Ventures and Acquisitions. [...]

[...] New Trade Theory 4. Porter's Diamond Theory 4. Potential Strategies for Servicing Foreign Markets 1. FDI 2. Exporting 3. Licensing 5. Producers Strategies and Structures 1. Toyota and Honda 2. [...]