Comperative study of the Japan-America distribution system in the Electronic Industry

1994 Fiscal Year Final Research Report Summary

• Project/Area Number: 05630062
• Research Category: Grant-in-Aid for General Scientific Research (C)
• Allocation Type: Single-year Grants
• Research Field: Commerce
• Research Institution: KYOTO UNIVERSITY
• Principal Investigator: KONDO Fumio Kyoto University Faculty of Economics, Professor, 経済学部, 教授 (40066676)
• Co-Investigator(Kenkyū-buntansha): WAKABAYASHI Yasunaga Kyoto University Faculty of Ecomonics Assistant Professor, 経済学部, 助教授 (70240447)
• Project Period (FY): 1993 – 1994
• Keywords: Consumer Electronics / Global Marketing / International Marketing / Competative Advantage / Export Marketing / Distribution channel / PB strategy / OEMStrategy

Research Abstract

This research is related to the Global marketing strategy of the Japanese consumer Electronic industry in the American market from the historical prespective. How the the Japanese consumer electronic firms entered into the American marked? What was their marketing strategy for that purpose? How the Japanese firms developed the American consumer electronic market for their own interest? These vital issues will be analyzed from the marketing point of view. Marketing point of view. Japanese firms realized that for competitative strength cost and quality is the two most importent factors, however to maintain that compititative advantage for longer time, distribution channel have a very significant role. In stage one, surplus commodity were exported. Those commodities were produced without any regard to the export market customers needs and wants. At that time American importers and the American distributors were used to reach the customers. However, in the subsequent stage the strategy was expanding the market with low cost products and mass selling. Here Japanese firms interacted with the American retailers and makers. Private brand (PB) goods were produced with the cooperation of the American national retailers and OEM with the cooperation of American makers. When they entered in the third stage they maintained their PB and OEM strategy moreover they took up their own brand strategy. At this stage the Japanese firms follow the dual channel strategy for distribution of their products. One for the GMS,Catagolog show room, Warehouse and other mass retailers and the other one is selective channel only for the speciallity stores. Gradually the selective channel got more preference and the fims shifted towards the speciallity stores. In this way they continued their effort to increase the product loyality. In the forth stage when the compitition in the global market came sever, then the Japanese firms in the American market with the help of the parent company cooperate with their Asian counterparts. Parts were brought from different part of the world and assembled in America. Those products were not only sold in the American market rather exported to Japan, Asia and Europen countries. At the same time as the cut throat compitition in the American domestic market became more sever the main big retailers transaction pattern was revolutionized with the influence of information technology. On the other hand this information technology help the makers to squize their product cost and formulate profit oriented strategy.