Influence of Globalization on Japanese Industry

Globalization influences every state and Japan is not the exception. Despite the fact that Japan is one of the richest countries in the world and is economically successful, still it has unsolved issues concerning working conditions. It is important to note that there are differences in payments, conditions of work at small and large companies in Japan. This model does not coincide with the model in Western developed countries. In Japan companies are oriented at the export market. The Japanese salary amount depends on the company size and region. Part-time workers, usually women, receive a minimum salary.

Earlier, the Japanese economy was aimed at the level of the USA and Europe. In the 1960s there was a period of high increase in economy. The industrial growth assumed nearly 0% unemployment. However, with years the unemployment percent increased. It is obvious that the Japanese economy undergoes structural development which causes a high unemployment pattern. These modifications evoke new working patters and industrial models. At present Japan has a difficult period in economy as there are problems with unemployment and working patterns in Japan. These changes are mainly the result of globalization, global changes that has covered all countries and continents.

Japan companies and even small firms have many methods for being competitive in the conditions of globalization. At the meeting in Tokyo researchers discussed the problem of globalization and they drew a conclusion that there are multiple ways to manage with the issues of globalization. Some companies are relying on outsourcing that is not good. Globalization makes people closer uniting markets, thus, it changes usual production systems and wipes the borders between societies. Earlier, a company organized everything within it, but nowadays every function can be performed by a different person, state or company. For instance, the iPod video player produced by Apple Inc. is designed in the USA, using Japanese elements for manufacturing and it is assembled in China. This ‘multinational product’ is of high quality and is very successful. So, we can see a shift toward multinational design, manufacturing and distribution of a product. Of course, these changes affect people who work at companies and their working conditions.

There is no general table what a company keeps within it and what outsources. There is information that in the industry of personal computers ‘Dell’ does not produce components and has little manufacturing. Thus, Dell is successful. Besides, Samsung uses components for computers produced by the company, and Sony buys almost half of components for computers in Nagano. The only way to be competitive in a globalized world is to produce components or services that are really unique and get the benefit from them. Placing manufacturing in another country is a tendency of today’s world. In this way a company saves much money hiring low-wages workers. Nevertheless, this method is not effective as a company needs to relocate its manufacturing all the time because competitors will go further and further to win. Outsourcing is a dangerous method as it can create competitors.

Japanese companies have had an experience of outsourcing the manufacturing in Korean and other countries that has lead to a creation of competitors. So, some firms prefer built plants in Korea and China – to produce and sell the products in these countries. This is a good strategy that works. However, other ones prefer to keep the manufacturing or, at least, some operations, within the company and the country. This or that way Japanese companies get profits from their business having used to a changing international market. Since 2004, Japanese industry feels the growth. For example, Japanese electronics moved its manufacturing to the country. Indeed, such a tendency of placing manufacturing capabilities within the country stays the major purpose of industry in Japan. Kenwood Corporation became one of the first companies returning its manufacturing line back to Japan. The thing is that the return to Japan caused the cut of worker staff in former manufacturing place - Malaysia and Yamagata. Another issue of a globalization is that in a changeable market conditions a company can raise the cost for components and you cannot flexibly answer to these changes relying on outsourcing and outside manufacturers. Moreover, outsourcing assumes a cutting of working staff, usually experienced that leads to the loss of competitiveness and dependence on outside factors.

For instance, Sony’s plants in Japan are main place of worldwide operations. Sony’s plants in Japan are responsible for about half of its world production amount, while China’s ones are responsible for about 20%. Sony’s strategy is to produce its equipment in China where there is a great market and Sony sells more than 10% of all sales annually. The Japanese plants are oriented on the product and development of new product lines, promotion of manufacturing technology. Another famous Japanese electronics company, Hitachi Ltd., also adjusts to changing global market continuing production of goods in the global environment and restructuring the company. Moreover, Hitachi is creating a new manufacturing system with greater profitability where the key roles play: innovations in working patterns, application of new technologies, use of outsourcing, management of human resources according to world’s standards, changes in employment patterns and working conditions.

Summarizing, there are various companies who use different strategies to achieve success. Analyzing the globalization process at a macroeconomic level, one must point out that some companies – successful ones – will survive, while others will experience the declining process. However, Japanese companies do the necessary changes for achieving good result. These companies will continue growing and this process will have a positive effect on the working patterns. In general, globalization is an inevitable process with its problems and Japanese industry sector must develop in the right way.