There are many previous studies describing the connections between urban areas, but the majority of these are described based on secondary demands such as work and school commuting. In this paper, we try to describe connections among urban areas based on intrinsic demands such as trading or financial relationships. Consequently, the monopolar concentration in the Tokyo metropolitan area was clearly seen while regional centers like Osaka and Fukuoka also have a level of measurable centrality. Focusing on trading networks, there are a significant differences between centralities in order receiving and ordering in regional cities such as Fukuoka and Sendai. Looking at financing networks, there are relatively stronger connections with adjacent areas while those links are relatively weak when compared to large cities. Also, the networks of small and medium enterprises tend to be scattered.

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    This paper aims to clarify the producers’ and distributors’ thoughts on the tradition of Kendo, an ethnic sport in Japan. It also looks at the changes in the production and distribution systems of Kendo protectors. The major findings are as follows.
    Most retailers and manufacturers of protectors for Kendo had to adopt low cost operations due to a strong customer preference for cheaper products. The manufacturers built mass production systems across Asia. In addition, they used artificial materials that are cheaper than natural ones. These changes have caused a problem for suppliers in Japan who specialize in natural materials. Most suppliers are planning to discontinue their current products and produce new products including martial arts supplies, traditional crafts, and processed parts, seeing these areas as those of growth and business stability.
    There are consumers and business operators who want to emphasize the tradition of Kendo protectors while maintaining a low price-oriented basis. For that reason, two types of production and distribution systems for Kendo protectors coexist currently in Japan. The first is a modern system for consumers and retailers who require cheaper protectors and manufacturers and material suppliers who have adopted a more modern production system. The second is a traditional system for consumers and business operators who emphasize tradition. These two systems have not been built strategically for each product or location. They have emerged as a result of decisions made on the concept of tradition by individual business operators. The manufacturers who adopt low-cost operations and mass-production systems purchase materials from material suppliers who compliment the manufacturers’ strategies, outsource production to overseas plants, and sell their products to mass retailers. The manufacturers who emphasize the traditional aspects of protectors purchase materials from material suppliers who share their values, and they sell their products to retailers and consumers who share their thoughts on traditional Kendo protectors.

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    This research deals with the mechanism for regional expansion and chain store control of a Chinese shoe company. It focuses on the following three points: 1) the history and background of the expansion of the chain store’s network via a franchise system, 2) management and support mechanisms that made it possible for franchisees to achieve high sales quotas, and 3) the relationship between the chain headquarters and franchisees and the changes in this relationship.
    Our research method was to interview four executives at Company A’s headquarters and its regional agency, and to interview 18 owners of Company A franchises. We investigated the process of how people became owners, the contract conditions and arrangements between headquarters and owners at the time of procurement of goods, the support which the owners received from headquarters, and the changes in this support.
    In its nationwide expansion, Company A signed franchise agreements with wholesalers and retailers, and it set up specialty stores that only handled its products. This company eased the financial burden of franchisees by relaxing payment terms, offering incentives based on sales, and supporting part of the startup fund by delegating some decision-making to the regional agency in Wenzhou, the city where Company A originated. In addition, it provided storeowners with training and knowhow on store operations.
    Many people in China have a high sense of business entrepreneurship, and they manage companies and stores. A distinct feature of Company A’s expansion has been its speed and effectiveness in mobilizing the entrepreneurial talents of these persons. Over a period of about 15 years in which it introduced its franchise system, the company rapidly expanded its network to 4,000 stores. On the other hand, looking at the relationship between the headquarters and franchisees, headquarters had previously provided full support to distributors. However, Company A’s headquarters has recently been strengthening its control over franchisees, and support for franchisees has decreased. In other words, due to stalled sales, difficulties with profit distribution has become evident.

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