Munehiko Itoh

Product competitive advantage and product architecture: value creation and value capture in the digital camera industry

With a focus on the digital camera industry, which of all IT devices Japan has high industry competitive advantage, we discuss what product strategy did companies employ to create and capture value as the market developed, and how product architecture has changed. To meet the different needs of customers, the digital camera industry is made up of two different vectors of successive and destructive technology which each take either a modular or integrated approach to product architecture. It is an industry where the opposing industrial constructs of vertical integration and horizontal specialization are intermixed. Furthermore, the de-integration that has occurred for the supply of for core modules such as CCD and the industry reliance on a few specialized companies shows how competitors are dividing into three camps adopting one of three strategies: vertical integration, horizontal specialization or core module supply.

Factors that Can Impact the Behavior of Manufacturing Employees in Japan, Thailand, and China

To address the issue of international HRM adaptability, we need to conduct a comparison of various ASEAN Plus Three countries, including Japan. In other words, to have employees actively engage in behaviors that are desirable for their companies, we must determine the most effective means of implementing HRM by identifying the differences between each region through conducting by-country analysis. Accordingly, in this study, we will focus on three countries by looking at Japan as the home country, and considering Thailand and China as Japanese companies’ main foreign investment countries. By targeting local employees of Japanese companies in these countries, we will attempt to find a solution to determine the type of HRM practices that are needed to promote employee behaviors required to run efficient SCM operations, and to identify the differences between these countries.

Outline of Automobile Production in Thailand

This study investigates the competitiveness of Japanese automobile makers by focusing on how supply chains are constructed. Recently, out of rapidly growing automobile market in ASEAN members, analysis was done on Japanese automobile makers’ supply chain in Thailand, which is also the biggest market. From the analysis, it was discovered that Japanese automobile makers not only localize automobile manufacturers but also train the local suppliers in order to increase the quality and productivity. Furthermore, investigation was done on multi-supplier companies, who despite being KEIRETSU still provided parts for other automobile makers.

Discussion and Implications for the Future

This study examines the patterns for building automotive supply chains in high-growth member countries of the Association of Southeast Asian Nations (ASEAN) in recent years and ways to effectively manage them. In particular, the study focuses on transactional supply chain relationships in the automotive industry. It also (1) identifies supply chain partnerships from the perspective of sales and service and not just production; (2) explains the supply chain localization process; (3) explicates trade practices within supply chains; and (4) examines, from three perspectives, the differences among country factors that impact the behavior of manufacturing industry employees. Currently, the expansion of automotive markets in ASEAN countries is causing major changes in how supply chains are created in the automotive industry, including for Japanese firms. At the end of the study, we offer thoughts on management on the basis of supply chain survey results from the automotive industry in Thailand, a major auto-making country.

Supplier Development of Japanese Automotive Parts Suppliers—Purchasing Strategy of Denso in ASEAN

The purpose of this study is to examine the supplier development (SD) of Japanese automobile suppliers in ASEAN. The globalization of automobile supply chain is progressing rapidly in recent years. With this globalization of the supply chain, it becomes necessary for Japanese automobile manufacturers to implement SD overseas. This applies not only to the relationship between automobile manufacturers and tier-1 suppliers but also to the relationship between tier-1 suppliers and tier-2 suppliers. However, it is difficult to execute SD effectively for tier-2 suppliers who are small and medium-sized companies. We indicated that the Japanese supplier Denso is strengthening its SD by combining SD by headquarters and SD by local initiative. While tier-1 suppliers tend to enforce SD unilaterally on tier-2 suppliers from start to finish, it is preferable for tier-1 suppliers to encourage the voluntary efforts of tier-2 suppliers and to execute SD sustainably.

Review of Preceding Studies

In the previous chapter, we gave an overview of the formation of automobile supply chain in ASEAN, particularly in Thailand. In this chapter, we will analyze the characteristics of automobile supply chain in ASEAN. In this analysis, we will focus on the characteristics of Japanese automotive industry and special attributes of ASEAN region. Specifically, we will analyze the relationship between automobile manufacturers and their parts suppliers, particularly on a special relationship called “KEIRETSU”. Beyond just providing technical guidance, a wide range of relationships such as human resource training has been constructed in KEIRETSU. In this chapter, we will review related preceding studies in conducting this analysis.

Localization Process of Japanese Automobile Companies in ASEAN—The Role of Local Parts Development Division at Toyota

Based on previous studies on knowledge transfer, we examined how Toyota has been advancing localization of supply chain in ASEAN, especially in Thailand. In particular, we revealed that Toyota has been providing technical support to its suppliers by establishing a new specialized department in charge of technical support called the “Local Parts Development Division”. Developing the suppliers is necessary in developing countries such as ASEAN countries where industrial competitiveness is not yet well developed. However, most of the previous studies did not shed light on how Japanese companies have been building their supply chain in developing countries. This study is significant in that, and it examined how the Japanese automobile company “Toyota” recognized the industrial competitiveness in developing countries and built its supply chain.

System architecture and innovation - software and hardware integration in car navigation systems

This paper attempts to clarify how the integration of software and hardware is related to product systems and product development organization in the IT age. As a framework for analyzing the effect of integration, we will examine the influence of software on product functions, product development organization and product innovation by introducing the concept of system architecture, which represents the nature of a system, and is defined as a combination of hardware and software. As a particular case, Japanese car navigation market is analyzed. We discuss how both software and hardware have open architecture dynamics, how those dynamics have several trajectories, and have a major impact not only on cooperation between product development structure and external organization, but also on innovation.