The tendency of the organizational structure of main industries towards dispersion has been an invariable characteristic of the Chinese economy before and after the adoption of the policy of reform and opening up to the outside world. Starting from this remarkable feature, and from a historical point of view, this article explains the formation of the Chinese industrial organization with local state-owned enterprises as the leading actors and the mechanisms for this industrial organization's changes.
China had adopted an economic system in which administrative power of the State Government was decentralized, and this had given rise to scattered industrial organizations in the mainstay industries among many localities. In the early 1970s, the “five tiny industries” - iron and steel, chemical fertilizers, farm machinery, power and cement industries - were composed mainly of local state-owned enterprises at the county level, which existed as major suppliers of capital goods for local economies. This decentralized industrial strategy in favor of local enterprises was closely associated with China's geographical allocation of resources and its worsening international relations characterized by the escalation of the Vietnam War in the 1960s and the Sino-Soviet Armed Confrontation of 1969.
The scattered local industrial organizations which had taken shape before the 1980s had a certain technological foundation, strategic resources and market shares regionally and were a continuation of the historical stock of capital to the period of the Reform and Opening Up era. The tendency of various industrial organizations towards dispersion has remained despite the series of economic reform measures and the industrial policy.

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The consumer electronic industry of China accomplished rapid growth as “Factory of the world” on the boundary of WTO (World Trade Organization) joining at the end of 2001.
The power of pulling growth was the foreign capital enterprises including overseas Chinese such as Hong Kong/Taiwan capital rather than Chinese local enterprises.
For example, a huge EMS (Electronics Manufacturing Service) enterprise “Foxconn”, the overseas subsidiary of Taiwan Company, is employing 400,000 to 500,000 people in the South China Region, and plays the role as “Factory of the world”. However, as pointed out by many people, the production process in China was rather low value process of the assembling/test.
In this paper, I would like to clarify recent trend of the consumer electronic industry in China, and analyse the structural problems and changes left under the prosperity.
In addition, I will refer to the dilemma of the Propaganda “Technology Innovation” policy executed under the 11th 5-year plan, as well as the poliey 7 the itention to global standard.

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China's auto industry has seen rapid growth in recent years. In 2009, China produced 13.79 million units of automobiles and became the world's top automobile maker and automobile market—This rapid expansion of the automobile industry in China continued in 2010 and both sales and production topped 18 million units. This paper focuses on the factors that led China to become an enormous automobile-producing country and analyzes ongoing changes in Chinese automobile industry. Special attention is given to the rise of Chinese domestic manufacturers and projections for their future performance. China is an exceptional country in the world in which domestic companies one after another are launching into the automobile industry, and the article shows that governmental industrial policy and recent structural changes in automobile consumption are promoting such behavior. Nevertheless, raising the level of product development and improving parts manufacturing capacity still remains problem for Chinese domestic auto manufacturers.

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This paper focuses on the marketing strategy for Japanese automobile manufacturers in emerging countries.
Firstly, we confirm that Japanese makers place importance on middle and high price range vehicles in developing countries, and they employ retail policy and strategy suited for sales of middle and high grade vehicles. They have not yet lost their market share very much. Therefore we consider why and how Japanese makers can employ such strategy, and, from a long term perspective, how long they will keep this strategy. We think that Japanese manufacturers should not enter the A segment in emerging markets.
Secondly, in terms of product life cycle theory, automobile markets in emerging countries are still in the Introduction phase, and have not yet matured or been saturated. As a worldwide market, the automobile market has been expanding. Moreover, innovation in technology has been continuing. It will take several years, perhaps as many as ten years, before the automobile markets in emerging countries reach the Matured phase. During the Introduction and Growing phases, automobile manufacturers of developed countries can use the above strategy in emerging countries.
Thirdly, we can infer that most of the entry users of automobiles in emerging countries are family households. And they are relatively elder people. On the other hand, most of the entry users in developed countries are younger and unmarried people.

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The semiconductor is the core component used in electronic products and is referred to as “rice” for manufacturing industries in Japan. The Japanese semiconductor industry has developed by supplying a variety of semiconductor products. However, regarding the highly profitable semiconductors that are used as the core components of advanced electronic devices, overseas competitors have dominated the market. Regrettably, Japanese companies have been complacent with the unprofitable peripheral circuit support business.
To overcome this difficult situation, it is necessary for Japanese companies to develop their business globally by adopting aggressive strategies. To do so, it is imperative for them to end their dependency on brand manufacturers and establish the ability to operate the semiconductor business. If Japanese companies can acquire domestic and overseas manufacturers that produce applications with growth potential, a path to the future will definitely open up for them.
In order to realize this, cross-company strategies must be implemented. All companies in the industry must pull together with an unwavering resolution to win over overseas manufacturers.
Without revitalization of the semiconductor industry, it will be impossible for Japan's manufacturing industries to prosper.

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The Association of Southeast Asian Nations (ASEAN) has been the representative of regional economic cooperation and integration in East Asia. ASEAN has promoted deepening and widening of regional cooperation. The five original members in 1967--Indonesia, Malaysia, the Philippines, Singapore, and Thailand-- welcomed Brunei in 1984, Vietnam in 1995, Myanmar and Laos in 1997, and Cambodia in 1999. Consequently, ASEAN presently extends throughout Southeast Asia.
ASEAN has implemented intra-regional economic cooperation since 1976. The ASEAN Free Trade Area (AFTA) was approved at the 5th ASEAN Summit in 1992 and established by the six original member countries in 2003. Today, ASEAN has a new goal: the ASEAN Economic Community (AEC), which includes AFTA and other methods.
Auto parts complementation scheme had a very important role in ASEAN economic cooperation, because firstly auto parts complementation scheme was one of the oldest policies of ASEAN economic cooperation policies, secondly automotive industries were one of the most important and strategic industries for ASEAN countries.
The Brand to Brand Complementation (BBC), the ASEAN Industrial Cooperation (AICO) and AFTA supported auto parts and automobile complementation in ASEAN, especially by Japanese automakers. ASEAN region was one of the most important production bases and markets for Japanese automakers, which had the important positions in ASEAN automotive industries.
BBC was proposed by Mitsubishi Motor Corporation and approved by ASEAN in 1988. BBC supported auto parts complementation by automakers including Japanese automakers. Furthermore AICO, which was the developed scheme of BBC and was approved in 1996, and AFTA supported auto parts and automobile complementation by Japanese automakers in ASEAN.
This paper examines ASEAN economic cooperation policies (BBC, AICO and AFTA) and auto parts complementation. Furthermore, this paper examines the typical cooperative case between ASEAN economic cooperation policies and Auto parts complementation or production network building. It is the Innovative International Multipurpose Vehicle (IMV) project by Toyota Motor Corporation.

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Growth of non-state enterprises has been one of the key factors for China's economic development sustained for more than thirty years. It was achieved by deregulation under the economic transition towards market economy. Some describe this process as “State backward, private forward”. However, in recent years, especially after the global economic crisis in 2008, it is observed that Chinese government represented policy change reversely to enhancing regulation, what is called, “State forward, private backward” at least in some industries, especially in basic materials industries. This article analyzes the background of this policy change and discusses how this policy can be evaluated through case studies of coal and cement industries. The conclusion of the analysis is as follows. Deregulation in coal and cement industries brought forth the entry of huge number of enterprises into market, which made rapid and large growth of production possible. However, in parallel, those problems had occurred as what we call, externality, including resource degradation, increased fatal accidents and environmental problems caused by small enterprises(most of which are non-state enterprises). Chinese government is promoting “State forward, private backward” policy, more concretely enhancing M&A of non-state enterprises by state enterprises by setting production scale standard. This article concludes Chinese government's preference to compulsory elimination of small scale enterprises by rigid standard of production scale cannot be justified and specific policy to internalize externality, such as energy efficiency or environmental standard, shall be recommended to resolve externality problems.

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China is the largest coal producer and consumer in the world, with the most serious coal accidents. This paper studies coal enterprise modernization, which focuses on the safety issues by forms of business enterprise in China.
This study reveals the following results: (1) According to different forms of business enterprise, the occurrence of coal accidents is quite different. Analyzing from safety level, stateowned enterprises (SOEs) is obviously higher than township and village enterprises (TVEs). As the leader of technical progress, SOEs have promoted the coal mechanization since 1978. However TVEs are still facing seriously safety issues on low safety level, technical level and mechanization rate. (2) From 1990 to 2005, SOEs got efficiency production followed by positive technical progress, but safety management level had not been improved. While since 2005, SOEs' safety management has been improving radically, along with development of enterprise reform. (3) For TVEs, technology development and technical support are necessary factors on how to use coal resource more safely and effectively.

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The purpose of this paper is to clarify the universal tendency of the diffusion speed of a new product, and price transition “before sale commencement” by analyzing the development process of new consumer electronics products. Generally, diffusion prediction of the new product is performed using various kinds of tools of analysis based on the sales result in the market just after a sale commencement. However, since it was after a sale commencement, when diffusion and price decline stepped at higher speed which was not in the former, the company decision of strategy operation being delayed and losing competitive power was able to see a lot. It is a very important subject to predict the diffusion speed of the product and price transition before a new product sale beginning, when a company carries out the strategy with sufficient timing and secures competitive power.
In this paper its attention was paid to the distinctive phenomenon in which the innovative new consumer electronics products become popularized. The phenomenon is the following three steps. (1) In most cases, it fell into the slump of sale just after the sale beginning for the heavy price. (2) After that, by the result of the cost reduction activity, the selling price fell and the quantity sold increased gradually. (3) Finally, when the selling price fell till a certain place, big capital investment was made, mass production started at once, the further cost reduction and enhancement of supply capacity were attained, and full-scale diffusion progressed.
Actually, it focused in the period until a penetration rate for households will be 20% from the sale beginning of new consumer electronics product, and diffusion speed and price transition were quantitatively analyzed as compared with progress of each product development. As a result, it became clear that the diffusion speed and price transition of the each product during this period had a clear relationship to the development speed of the key device in the products. Furthermore, the relationship was able to be expressed to the pattern. It became possible to predict that diffusion speed and price transition by applying this pattern to the new consumer electronics products which will appear from now on.

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After the Lehman Shock in 2008, the rules of the world economy have changed drastically. On the one hand, there is still a strong concern of double-dip, thought will ease their survey, in developed economies; on the other hand, basing on the faster recovery from the crisis, emerging economies have been set to become the main global growth engine. Although, there are also numbers of uncertainties about emerging economies, such as growing domestic inflation pressures or overheating pressures partly due to resurgent capital inflows, the exports to emerging economies and the movement of production relocation in emerging economies have been spurred globally.
The same change also can be observed in Chinese auto market. In 2010, China's auto sales grow up 32% to hit 18.06 million and refreshed the world sales record hit by the U.S. market as 17 million. Therefor, China is expected to be the world's largest automotive market with hypercompetition across each segment. Actually, however, we can find a meaningful phenomenon that in last 10 years, most of the so-called succeed automakers, such as Volkswagen or Hyundai even General Motors, has suffered sluggish sales in China and recovered through a series of organizational transformations in local management. These cases give us an elementary understanding on how important that to lead corporate to grow by adapting to the comprtitive environment in emerging markets.
In this paper, we focus on Independent Chinese Auto Manufacturers, from the same viewing point which to achieve the growth by adapting to the comprtitive environment. We try to clarify the relationship between their growth and a series of organizational transformations they made in their management. In this preliminary exploration, we will give more attention to their subjects about succession on organizational capabilities.

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The purpose of this study is to clarify through the example of SUBARU “LEGACY” that their products have their original strength after purchasing.
Based on researches done mainly by case studies, it is showed that customers keep being interested in perception of the product not only before but even after purchasing, and demonstrates that efforts made by a manufacturer producing parts for racing cars. greatly contributed to improve the perceived value of the product.
The author examines that these qualities are evidences of sustainable advantage and additionally, he points out that corporate activities made by other companies than the manufacturer itself has importance in co-create of value.

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IBM, HP, Fujitsu, Hitachi and NEC are the major IT manufacturers that represent the IT industry in the United States and Japan. These IT manufacturers have been primarily running a product business based on providing hardware and software products.
However, these IT manufacturers are attempting to shift their business focus from products to services. They are doing this in order to respond to the diversification of IT technologies and to the loss in revenue of the hardware product business caused by commoditization. The U.S. IT manufacturers are also starting to transform their business structures to the comprehensive business model that is characteristic of the Japanese IT manufacturers. However, the comprehensive business model of the U.S. IT manufacturers and the Japanese IT manufacturers is turning out to be different.
The U.S. IT manufacturers are building a business model called a “strategic” comprehensive business model based on combining the strong products business and services business. On the other hand, the Japanese IT manufacturers had to focus on dealing with Japanese customers' expectations and solving their problems in the Japanese market. Therefore, their business model evolved into a so called “inevitable” comprehensive business model. These differences were brought about by the change in business structure from vertical integration to horizontal specialization in the IT industry during the Open System Computing era.
This change in the business structure created a gap in the competitiveness between the U.S and the Japanese IT manufacturers which also contributed to the differences in the comprehensive business models. The result of the differences between comprehensive business models led the U.S. IT manufacturers to maintain a high market share and a strong position in all categories of IT business.
In this paper, I will describe the reason for the shift to services of IT manufacturers. Then, I will analyze the differences between US and Japanese comprehensive business models. Finally, I will propose an action that Japanese IT manufacturers should consider concerning the future business model.

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Among two similar industrial districts, what causes one to sustain and the other to fail? Alternatively, why and how did the districts that sustained maintain their competitive strength, and why and how did the districts that failed lose their competitive strength? This paper aims to examine the strategies of industrial districts by comparing and contrasting the long-term trends in industrial district that sustain and industrial district that fail in order to determine the factors behind sustainability and failure.
As a result, the following conclusions were drawn.
The Japanese sandal manufacturers at the industrial district in Sango-cho, Nara Prefecture manufactured products that responded to the market's needs and changed its business model to fit the customer, and the industrial district in Sango-cho has sustained.
The Japanese sandal manufacturers at the industrial district in Kanmaki-cho, Nara Prefecture attempted to manufacture large quantities of low-priced products, but were ultimately unable to compete on price and lost its competitive advantage. Thus, the manufacturers in the industrial district in Kanmaki-cho failed.
The conclusion drawn from the results of this study is that the factors behind the sustainability of industrial districts where small- and medium-sized enterprises produce daily consumer goods (Japanese sandals) depend on the cluster of enterprises that possess a strong business risk and employ a product differentiation strategy (i.e. pursuing a niche market that does not compete with large- and medium-sized enterprises, understanding market needs, and creating products that respond to these needs). Due to this strategy, they consistently pursued competition on a non-price basis and their products possessed unique competitive power. This differs for each enterprise, but generally consists of competitive advantages with the following factors: 1) sandal thong technology, 2) product planning, and 3) brand power.

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