In this study I shall examine the forward integration of distribution (in the perspective of wholesaler-hansha-) focusing on Matsushita Electric corporation during the high growth period in Japan. In the foregoing chapters I have examined selected aspects of intrabrand competition and interbrand competition. In the second section, I discuss the establishment of the first stage of hansha and examine the principle of operation. In the third section. I look at the first stage of hansha to the process of the expansion of the hansha system. In the fourth section, I analyse the relationship between Matsushita and hansha (including existing wholesalers) from the point of view of capital and manager. In the fifth section, I examine the changing functions of the sales offices. Throughout this study it has been clearly observed that (1) Hansha refers to an exclusive dealer who sells certain maker's goods only in certain territories. The former can exclude the competition of multiple makers in the existing dealer system (interbrand competition). The later can remove the intrabrand competition of a certain maker in the same area. Matsushita owns the wholesale channels, most of which came into existence through the use of separation of top level dealers with a long history and accumulated capability to operate. I studied changes that have taken place within the hansha system, the first stage of the development of hansha, and the second stage of the spreading of hansha nation-wide, to the third stage of the restructing of hansha. In particular, in 1961, the second stage of the expansion of hansha can be seen as the turning point. (2) In 1951, Matsushita announced regulation of the hansha, whereby Matsushita was to invest over 50% of capital and to send managers to the hansha. Until 1974, they were unable to reach that goal. (3) Prior to the hansha system, Matsushita was in contact with wholesalers through the sales offices. After the hansha system was instituted, however the sales offices' functions changed, as they attmpted to encourage the hansha, and increase their strength through exclusive dealing and Keiretsu of the dealer shop.
The purpose of this paper is to examine how the foreign affiliated companies contributed to the Japanese modernization of management system in production, marketing and employment mechanism in the pre-war period. In production, the Japanese companies studied production technology, mass production system and Taylor system. In marketing, the Japanese companies studied franchise system and sales in installment system. In employment mechanism, the Japanese companies did away with subcontract system and introduced the direct employment. In conclusion, the Japanese modernization of business management has been done throughout the transfer of business system that the foreign affiliated companies had introduced. At the same time, both the Japanese companies and the foreign affiliated companies have taken a positive attitude to R & D.