Could the reason be "Plaza Accord"? http://en.wikipedia.org/wiki/Plaza_Accord
Now the new PM wants to devalue Yen. I am looking forward to buying a Lexus when it becomes cheaper than a Hyndai. The quality is no comparison :-)
Dunno, I continue to think that too much is being made of past popular myths. What made Japanese CE and auto companies famous, in the 1970s and 1980s, was production of good quality mass market products. Emphasis on "mass market." Not true innovation, and not state-of-the-art design either. But the products tended to work well at their intended functions, because they were conservatively designed and well screwed together.
In the popular culture, this might become blown out of proportion. Which is why laymen might have thought of Sony or Honda as producing something spectacular. And the popular myth takes on a life of its own. But it's still a myth.
While I agree that spending too much on "quality" might price a company out of competition, it's not entirely clear to me that this is the major effect going on here.
The emphasis was on "mass market" products, from Japan Inc. But that "mass market" always demands the lowest possible production costs. And that's why this manufacturing has migrated to Korea, to China, and I'm thinking eventually to India and perhaps Africa? when the quality of life rises, so do those production costs.
Japan might have to reinvent itself, like Germany, as the producer of what the popular culture will accept as being luxury items.
I worked in Nihon TI in the 90's making DRAM. We had a development JV with Hitachi. For sure Hitachi had a very hierarchical management structure, and initiative by engineers was not really encouraged. Hitachi had a lot of money and state-of-the-art equipment then. I don't think it was possible for Hitachi or any of the Japanese DRAM makers to compete with Samsung after the asian financial crisis of '97. The Korean won was so cheap there was no way that Japanese manufacturing could compete. For sure the Japanese culture of avoiding risk and change at the time hurt very badly. The giant paternal Japanese corporation was a good thing when it allowed long-term investment to happen. It was a bad thing when the corporate inertia prevented the radical changes necessary for them to continue to thrive.
I owned Samsung phone may years ago, and I hated the quality of it. I have never bought a Samsung product again.
I have owned Sony products, Apple products, japanese cars etc. I do love the things that last. I owned apple phones for many years, never had a issue with it. I don't mind paying a few extra bucks for peace of mind,
@Junko: I'd add a couple of other factors: the nature of the marketplace and the intersection with Japanese culture.
Consumer electronics are a textbook capital intensive business. The biggest portion of the cost of the device you make is an allocated share of the debt you took on to build that factory to produce it. So you are encouraged to target high volume markets, because the more devices you make and sell, the smaller the allocated overhead slice on each will be and the cheaper you can price the product.
Consumer electronics also follow a standard business cycle. Consider the once ubiquitious PDA. The original Palm Pilot created a market, and a PDA became everyone's must have accessory. Palm couldn't make them fast enough, and Handspring (formed by ex-Palm execs) Sony and others jumped in. The market rapidly became saturated. The PDA went from high-margin must-have to commodity with commodity pricing and razor thin margins. Sony exited the business because while it was profitable, it wasn't profitable *enough*, and they could make a better return placing corporate funds elsewhere. Palm no longer exists.
The PDA simply recapitulated, and order of magnitude faster, what had already happened in the PC market.
The ballyhooed problems of Sharp, Sony, and Panasonic in big-screen TVs are simply one more example - they became commodities where the lowest cost producer wins, and Japan *can't* be the lowest cost producer. There is too much overhead from simply being located in Japan, in the same way that being in the US makes various business uneconomic for US companies. It simply costs too much to be in the US, and they can't recoup the costs in their pricing.
Sharp, Panasonic, and Sony failed to foresee the inevitable, and continued in the big-screen TV market well after it was possible to make money at it. They should have anticipated the issue and had a plan to exit the TV business before that point.
@Junko: Next, consider Japanese culture. Japanese management style is consensual. US companies doing business with Japanese partners have been known to complain about the time involved to get a joint venture up and running. That's because Japanese management style tends to be bottom up.
In a US company with a top-down style, top management will decide on a course of action and expect compliance. There will be friction because everyone won't agree on the action, and some will see their interests adversely affected. There will be speed bumps on the road to making it happen.
When a decision is made to do a joint venture, the Japanese side undergoes an extensive process of selling it internally. There may be several waves of Japanese coming to visit the US partner, each of whom will need to have it all explained to them. They represent different sets of stakeholders on the Japanese side, who must buy in to the idea.
Once the buy-in has occurred, the Japanese partner can *implement* with blinding speed, because everyone on their side understands what the company wants to do and what their part is in making it happen.
But the difference in style makes it harder for Japanese companies to react quickly to changing market conditions, to stop doing existing things, and to start doing new things. Getting the agreement that those changes need to happen can be laborious, and may not happen.
Every time I see "Yoshida in .." in the title. I'm just so looking forward to reading it. This time, I find it more fascinating. I just can't help agreeing most if not all.
By following Yoshida's article, a picture started forming in my head. Japanese's value of quality was building her name in the 80's and 90's. Which brands of car that will last at much as 250k miles with only regular maintenance. They are "Made in Japan". Japanese electronics and appliances last at least 10 years. The quality of Japanese product is no doubt one of the best.
Nothing comes w/o a price. Just like Yoshida said, a good quality means more process. More process means high cost. In addition to long QA process, I'm pretty sure there is a long design process and decision process. I was luck enough to work as an intern in one of the major Japanese electronic brands in my senior year. The meeting to decide a go of a product takes weeks of multiple meeting in a smoky conference room. Imagine what it takes for the design, validation and improvement. Every detail, e.g. whether glue should be used and what size of screw should be, are examined. That's the recipe for success.
Nowadays, the world has changed. Efficiency is everything. The regular product life cycle, taking smartphone as an example, is 2-3 years. Consumer starts asking why I need a product lasts 5+ years. In addition, a lot of people, engineers included, believe anything can be upgraded. A conversation carried the other day, "In the future, I will receive an email from Tesla saying they will upgrade the firmware of my car tonight. I will get 50 more horsepower after the upgrade." When upgrade is possible, bug can be fixed later.
Well! I guess the world is changing.
@Junko: Last, consider the notion of "face", which applies to individuals and organizations. Preserving face is paramount.
A US CEO whose performance doesn't meet the board's requirements can be removed. The common public announcement is "Resigned to pursue other interests", but everyone knows that means "Didn't measure up and was fired." I think you'll find a lot more circumspection in Japan, and the last thing anyone will do is say "He was fired because he wasn't good enough", even if that was the actual cause for the executive's departure.
And face applies to companies and by extension to Japan itself. I think part of the problem faced by Sharp, Panasonic, Sony and the Japanese government is that confronting the underlying problems requires admitting that they made decisions with poor long-term consequences, and damage of reputation has occured for the companies and Japan as a result.
While the excuses you mention given by Japanese companies are all valid, I don't believe they are enough to explain Japan's problems, and I think Japan would still be facing these problems if those events never happened.
I think Bert22306 was exactly right when he said "Japan might have to reinvent itself, like Germany, as the producer of what the popular culture will accept as being luxury items." It can't make money selling commodities because it can't get production costs low enough. It needs to focus on higher end products with better margins.
And it needs to accept that various Japanese firms will have to shrink to be sized for the markets they can address, and that large numbers of Japanese workers will be displaced in the process. Japan is undergoing the same changes as the US, for the same reasons.
What are the engineering and design challenges in creating successful IoT devices? These devices are usually small, resource-constrained electronics designed to sense, collect, send, and/or interpret data. Some of the devices need to be smart enough to act upon data in real time, 24/7. Are the design challenges the same as with embedded systems, but with a little developer- and IT-skills added in? What do engineers need to know? Rick Merritt talks with two experts about the tools and best options for designing IoT devices in 2016. Specifically the guests will discuss sensors, security, and lessons from IoT deployments.