Why Are Japan 3 Electronic Tycoons On The Wane?

560 million, 470 million and 980 million are the losses in 2011 of three giants in the Japanese electronics industry: Sony, Sharp and Panasonic

. The total $ 20 billion loss has marked once the industry big giants were lost. But its competitors Samsung and Apple's net profits for the same period was as high as $ 14.45 billion and $ 16.63 billion.

Why do Japan electronic industry walk on the wane?

Deterioration of Competitive Environment

The fierce competition in the global appliance market result in declined prices may be one of the reasons. This makes Sharp which has technical leading advantage has also declared $ 4.66 billion loss in 2011 mainly due to its difficulty in LCD panel and TV business.

In addition to intense competition, in the financial statement of 2011, Sony believed that the deterioration of market in developed countries is the main reason for its earnings difficulties. Its TV business was affected by deterioration of the market in Japan, Europe and North America, thus, the number of sales units and sales revenue declined.

Adverse external factors also included natural disasters. Sony, Sharp and Panasonic factories discontinued in Japan earthquake disaster area last year and the supply chain was interrupted. Meanwhile, as one of Sony's current production centers is Thailand, the country's 70-year return floods also makes the electronics giant badly damaged.

Monetary Factors

The continued strength of yen and relative depreciation of the Korean won seems to explain some market advantages for Samsung. Sony mentioned in the financial statement, by the negative impact of exchange rates computers and digital imaging products declined in sales revenue. Panasonic said in the announcement of the 2011 annual report for the appreciation of yen has greater resistance to the company's profitability. Reported by the BBC, the contrast between strong yen and weak won was also regarded as important reason of loss Japanese companies and profitable Korean enterprises.

Has Technology Leadership Disappeared?

Sony Walkman was once a typical source of innovation. Sharp invented home video camerathe View Cam in 1992 and Panasonic appliances are used to be popular grade of choice. But since the advent of Apple, global electronic field source innovation keeps away from Japanese enterprises. Neither source innovators, nor could Sony, Sharp and Panasonic even keep up with comprehensive function of electronic product trend caused by Apple series.

Performance VS Big Company Disease

Maybe it is able to use another word to explain why Japanese electronics companies have now difficulty in source innovation: big company disease.

Common problems that widespread product line is too long can be found in Sony, Sharp and Panasonic, resulting in a fuzzy focus and unknown direction. Mr. Hasegawa, in the diagnosis of Japanese electronics companies, listed putting too long products life line which delayed the launch of new products as one of the reasons they are in financial difficulties.

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by:meishan

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