Japan Facsimile Essay

1399 WordsFeb 11, 20156 Pages
1) Porter Diamond Analysis: • Factor endowments: o Japan consisted of multiple specialized firms and suppliers that served the facsimile market. They were able to create the majority of their components through vertical integration keeping production costs minimal. o The ability to create components in house led to a mass production assembly line method. This decreased costs even further from $3,700 in 1977 to 1,400 in 1985 and to $940 in 1987 per unit. (p.4) o Many of the firms employed automated part selection along with the assembly line. This allowed inexpensive alterations in production for large manufacturers. Additionally, automation gave flexibility to change to local regulations and the changing facsimile industry. (p.5) o Japanese firms acquired joint ventures with companies in the United States to further increase technology. Other companies hired electronic engineers to develop fax machines, “by 1980 Japan was turning out more electronics engineers than any other nation”. (p.6) o The NTT, Japanese state-owned telecommunications company, invested heavily into the facsimile market by dedicating phone lines to fax machines. This allowed Japanese companies to communicate more effectively. (p.8) • Related and Supporting Industries: o Many of the Japanese firms were successful in electronic component industries, such as scanners, printer heads, and custom semiconductors. o Japan had sophisticated relationships with many types of channels from direct sales, office equipment dealers, and communication equipment dealers. (p.4) o Around 85% of the world’s thermal paper came from Japan. Thermal paper facsimile machines were cheaper than plain paper even in 1990, giving japan an edge to continue innovating machines that used thermal paper. (p.3) • Demand Conditions: o The cramped Japanese offices needed smaller machines; therefore the firms created

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