Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (1348)	8/16/1998 8:06:00 AM
From: chirodoc	Read Replies (1) \| Respond to of 3902

To: chirodoc (1347 ) From: Peter Futerko Sunday, Aug 16 1998 4:57AM ET Reply # of 1348 Hong Kong Government Buys Stock In New Move That Spurs 8.5% Rally... cbs.marketwatch.com. cbs.marketwatch.com These two markets may offer some good short sell candidates in the near term. >do not tell me that sony honda toyota and matshushita are not world class companies; >>>>>>How can Honda and Toyota become again what they once were when: 1) Competing companies have modeled their business strategies after them......honda and toyota are strong in almost all markets they have entered--they have only recently set sights on europe and china--they will blow most competitors away in asia when it rebounds in 1-2 years 2) Japan is losing it's domestic market.......deregulaion and tax cuts will change that in a year or two. 3) The tight keiretsu system can not be duplicated outside of Japan......than why do they dominate with products produced OUTSIDE japan? .......remember all the articles about how US had lost their competitiveness forever to the japanese? .......give them 1-2 more years of deregulation and tax cuts--if it produces the same results in virtually all countries where it has been tried, why not japan--look at their financial/investment sector--they are now fans of mutual funds! curtis curtis Japan has few natural resources, is heavily populated, is it's once protected domestic market is being penetrated by foreign companies. It will be a struggle for some time to come.

To: fut_trade who wrote (1348)	8/16/1998 9:50:00 PM
From: Step1	Read Replies (1) \| Respond to of 3902

Peter, on this one, I just had to put my two yen worth although others have already commented... >>> How can Honda and Toyota become again what they once were when:<<< Once were? Honda just beat sales performance in US market and has introduced very succesful models in the last year. The have a return on assets of 15%, comparable to any world leader in the field. Toyota has introduced the first commercially viable (ok they lose money on it right now, but as a test for marketing, distribution, fine tuning, you cannot beat that) hybrid vehicle, th Prius. >>>1) Competing companies have modeled their business strategies after them<<< 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. You picked the strongest of the lot, I would understand if you looked at Mitsubishi or Nissan but Honda and Toyota... >>> 2) Japan is losing it's domestic market<<< I assume you are not talking about cars here, in which case it it true that there have been incursions by foreign firms. Desirable if you ask me . It is not losing its domestic market, new ones are being created and naturally doors are open to new entrants ... >>> 3) The tight keiretsu system can not be duplicated outside of Japan<<< Increasingly irrelevant now as most progressive companies are moving to open the field to any suppliers, part of keiretsu or not. Other companies just can not afford to rescue some of their keiretsu breathens. (nissan insurance went down and Nissan Cars did nothing. I suppose they just wrote off their share of the investment) >>> Japan has few natural resources, is heavily populated, <<< This is nothing new Peter, it has always been there and in some way has been the part of the explanation for the tremendous growth after the war ( i say part here ... many other reasons contributed) >>>is it's once protected domestic market is being penetrated by foreign companies. <<< Precisely because the market is there. Japanese companies are not going to sit there and just watch. They are either buying the talent and tools they need to compete, laying off people (sometimes not officially, as there are many ways to lay off in Japan) or are partnering up with foreign companies. The weak ones will die off. >>>It will be a struggle for some time to come.<<< The only point we agree on here. later sg