An Essay on the Ultra Cost-Reduction Strategy for the Japanese Auto-Industry

Abstract

In this paper, we argue how Japanese auto-industry can enhance cost competitiveness in emerging markets in order to they maintain international competitive advantage. We submit that the incremental innovation, Japanese auto - industry has consolidated for a long time, interrupts themselves to adapt emerging markets flexibly. The main facts why Japanese corporations face difficulties in emerging markets are as follows. Firstly, almost every Japanese corporation might recognize their products possess superior quality to which emerging markets never prefer. Secondary, Japanese corporations have been caught in their own trap to observe their intra-firm institution, i.e. design criterion, strictly.