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Industry Review Japan: Consolidate or Lose!

In a new study, Hisaji Yoneda and Martin Tonko analyze the need for, and future of, consolidation in Japan2009 marks a year of change in Japan.

The effects of the ongoing economic crisis and the landslide election of a new government have vividly shown that pressing economic issues have to be addressed with more economic rationale than before. The need for change is apparent.Declining competitiveness.

Population decline, ongoing globalization and increasing competitiveness of other Asian countries like China and Korea, place a heavy burden on Japan's industry.In fact, apart from large Japanese tier I corporations like Toyota, the competitiveness of other Japanese enterprises has largely fallen back. Decades of organic growth and corporate "live and let live" mentality have left whole industry sectors overcrowded with unprofitable companies.

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