The Great Fall of Japanese as Electronics Poineers

Posted By : Kishore B.S

Hi Friends,

It was an era when people across the world use to wait for technological innovations and product launches from Japanese electronics giants.   If it was Sony or Panasonic for rest of the world, it was Sharp for Japan who was always leaders in Innovation.

With invent of Korean companies like Samsung and LG and with American Company Apple coming into the electronic space with more path breaking technologies and features along with cost benefit up to an certain extent, started eating away the market share of the Japanese Giants.

The Koreans were known for replicating the innovations of Japanese companies, with mass production and quick launches of the upgrades in no time, it kept people on their toes to buy their products, this did the work of catalyst to expand their market share specially Samsung.  Before last 10 years products of Samsung or LG were considered as good for lacking features and quality which Japanese use to provide in their products.

It all started with the LCD Tv’s, went further with LED TV’s and now happening in space of mobile phones with latest features, designs and path breaking product innovations.

Three of the majors who have been ruling the markets now, i.e. Apple, Samsung and LG have been fighting with each other and the Japanese big wigs for Patents Infringing and violation of technology sharing terms and conditions.  With this there is lot of competition in form of adding more innovations and addition of new products on periodical basis.

Now three of the major brands of Japan are on cost saving spree and are eliminating total of 29000 jobs across the world.

The Japanese companies are having tough time because of:

Appreciation of Yen

Competition from Samsung, LG & Apple

Loss of Market Share


The Mistake:

Sony, Panasonic and Sharp were slow to realize that Apple and Samsung were turning up the heat on many fronts.

Now Sharp expects a net loss of 450 billion yen in the year ending March 31, while Panasonic projects a loss of 765 billion yen & Sony reported a loss of 15.5 billion yen for quarter of July and September 2012 post its sale of Chemical Business.

Only way out for Japanese electronics giants is they must develop next-generation products that enthral consumers once again, rather than playing catch-up to companies like Apple and Samsung on already available technologies.

For now all the Japanese companies are busy lying off their employees, selling off their assets and busy negotiating with other companies outside Japan for a stake sale.

So at end of the day evolving as per the changes around you makes you the survivor and not just the vision.

(Inputs: Mr. Kishore B.S, Program Director & CTO, Stock Market Institute, Bangalore)


Team SMI

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