Not so invincible: electronics industry in Japan hits limits after spectacular rise; some markets get saturated, and many firms lag in creating new products: a profit decline for the pack

Article Abstract:

The electronics industry in Japan once appeared an unstoppable juggernaut, but the recent recession, coupled with Japanese companies' inability to create new products, is causing problems. Many major Japanese companies are reporting lower earnings for 1991. Among the casualties are JVC, which may post its first loss since 1951, Sony Corp, which will cut capital spending by 36 percent, and Hitachi, which will cut the pay of its top executives by 15 percent. Many of the major electronics companies have also seen their stocks plummet and their credit ratings could soon be reduced. Among the problems facing Japanese companies are market saturation, price competition between Japanese companies and new competition from Korea and Taiwan.

Electronic Components and Accessories, Consumer electronics, Electronics industry, Financial Analysis Software, Industry Analysis

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Compaq, hit by lagging sales at home, prepares to enter Japanese PC market

Article Abstract:

Compaq Computer Corp will enter the Japanese market early in 1992. Compaq has formed a sales subsidiary in Tokyo, appointing Masaru Murai, formerly with IBM, as the new company's president. The Commerce Department has selected Compaq, among 20 companies, to be included in a special program aimed to increase US exports to Japan. The US government will help with marketing plans and will monitor progress, meeting periodically with Japanese officials. The US wants to be sure that American companies do not encounter unfair competition in Japan. Both Apple Computer Inc and IBM plan to strengthen their operations in Japan. According to Dataquest Japan Ltd, US companies currently have about 10 percent of the market there.

Planning, Microcomputers, Compaq Computer Corp., CPQ, Marketing, International trade, Economic policy, Appointments, resignations and dismissals, United States economic conditions, International competition (Economics), United States. Department of Commerce, Microcomputer, Computer Industry, Japanese Competition, Market Entry, Murai, Masaru

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