The Early Stage Competition in the Japanese Online Securities Industry

Research Based on Case Studies of Leading Companies

Abstract

In the early stages of the online securities industry in Japan, combined factors of expectation based on the precedent in United States created a “dominant perception" that the customer base of the industry would dramatically increase. Based on this perception, companies other than Matsui Securities continued to participate in endless and morass price competitions. These companies shared sufficient knowledge on Matsui Securities' strategies as well as Matsui Securities' performance. However, at least for two years, they underestimated Matsui Securities as “a niche company" and did not seek to its strategies. Thus, Matsui Securities were able to enjoy overwhelming performance and establish a solid position in the initial stages of the industry without being imitated by others.