On Mon, Feb 11, 2002 at 11:47:21AM -0500, Chris Beggy wrote:
>
> It's the canonical business school answer, "If you do what we
> say, you will succeed!"
>
> I haven't read it, but here's a blurb from an HBS review:
>
> "The task before the Japanese government, the authors conclude,
> is to stop trying to manage the competitive process and start
> providing a dynamic context for it. Their recommendations include
> reinvigorating antitrust policy, opening up trade, lifting
> restraints on foreign investments, creating greater corporate
> accountability, and improving the research capabilities of the
> country's universities. In addition, the Japanese government must
> promote the modernization of inefficient domestic sectors such as
> retailing and wholesaling, while encouraging economic development
> beyond the overcrowded confines of Tokyo and Osaka.
>
> "Meanwhile, Japanese companies need to rethink their fundamental
> approach to competition. In short, they must begin using strategy
> to carve out true competitive advantages. "Some newer companies
> that are outside the interrelated networks of the keiretsu system
> are already doing this by competing with truly distinctive
> strategies," says Porter. "They illustrate the advantage that
> firms can create by combining a clear strategy and profit
> orientation-rather than a philosophy of
> dominant-market-share-at-any-cost-with traditional Japanese
> strengths such as setting long time horizons and treating
> employees as assets."
>
> FWIW, this is a pretty stale prescription. I've heard this since
> at least 1986, when trade friction was the problem, then in 1993,
> when the high yen was the problem, and recently in 2000, when
> stagnation is the problem. I hope the book explains why it
> hasn't been tried.
>
> As Porter mentions, some firms have changed their approach. He's
> a detail-oriented guy (/Competitive Strategy/), with a great
> perspective on firms in the context of industry groups, and how
> to distinguish them from governments and countries.
>
> Chris
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu