>Once were?< Same time zone it seems... here is my reply.
>>> I think this year is the first year in many, many years that Toyota's domestic market shrank. Profit's
per vehicle must be shrinking as well. IMO, the edge these companies had in the late 80's is
disappearing. Yes, they are healthy companies, and will remain so -- but the market for Hondas or
Toyotas is not expanding like it once was.<<<
First on the market share. Domestic market share is shrinking but it is shrinking to domestic companies... I do not have the exact numbers but foreign car companies (aside from Mazda owned 36 % by Ford) are down overall also. Secondly, Toyota is not expanding as much as it once was, well, sure so is Microsoft if you look at the early years...
>So what makes them less competitive, with a weaker yen and higher value added product, excellent
quality and incredible brand recognition, they are as strong as ever.
>>>Again, Toyota and Honda are gradually losing their domestic market. IMO this is significant.<<<
See my comment above, not to foreign competition is my point.
>Increasingly irrelevant now as most progressive companies are moving to open the field to any
suppliers, part of keiretsu or not.
>>> Whenever a Japanese company tries to improve suppliers in the US, they help their competitors as
well. Honda and Toyota are not growing profits like they did in the past.<<<
First point is somewhat a given. Especially for automobiles, (but aeronautics and computers as well) transferring technology and generally higher demands for parts standard is going to strengthen your competitors as well since they most likely sell to them. This is the global economy and the tendency to develop better and more efficient products which should in the long term increase wealth. The second argument has been answered above i think.
>This is nothing new Peter
>>>Japan took an early, aggressive stance in key high-tech industries and became a powerhouse. Now
other countries have followed in her footsteps and created overcapacity of high-tech goods, which
drives down profits. <<<
Right . The imbalances will correct themselves over time. My bet is that Honda, Toyota, Sony and some of the other bluest of the bluest will still be around.
>>>Because Japan has few natural resources, Japan is particularly vulnerable.<<<
To a complete collapse of the world economies or economic system. If you believe that we are all going back to caves or that unprecedented upheavals on a global scale is impending than Japan, with relatively few resources is quite vulnerable.
sg |
