Is the keiretsu system in Japan's automobile industry really losing importance?
Heinz Oyrer
Strategic Partnerships & Business Development - Rethinking Traditional Roles and Adopting an Ecosystem Mind-set! ??
Basically no global parts or material supplier that is serious about selling big to the auto industry can ignore the potential of selling to the Japanese. So, how does this effect the Automotive industry - Japan’s largest and internationally most competitive industry?
Despite the new openness to foreign suppliers, generating new business from Toyota & Co. will neither come easy nor overnight. Yes, the keiretsu system is losing importance and foreign suppliers are making greater inroads into automobiles — However, though the new approach is breaking old bonds of loyalty, there are still barriers. Standards in Japan are often different, and quality, response and service requirements are typically higher than in other countries. Therefore in many cases Western companies must redesign or redevelop products in order to succeed with Japanese customers, and develop higher levels of service and response and quality.
Japan's keiretsu suppliers at risk in a new reality
"The profile of our customer base is changing. We cannot survive if we just stick to our conventional business style." Toshiyuki Mizushima, Aisin executive vice-president
Sourcing
8 年Das Auto
Innovation and Competitive Edge through Purchasing | International Leader in Procurement & Supply Chain
8 年If I remember well, the REAL trigger, the one starting to make Japanese OEM’s really serious about considering alternative sources, was the 2011 tsunami hitting Japan. Because then they suffered a basic supply-chain risk, and they realized their supply-chain could be hit by a phenomenon that would lay down ALL suppliers simultaneously. And that why they started to consider geographically diversified sources.
Strategic Partnerships & Business Development - Rethinking Traditional Roles and Adopting an Ecosystem Mind-set! ??
8 年Thank you Peter. Let's see if this also happens that fast in Automotive with a lot of safety and legal challenges. But I would agree that retaining on a conventional business style would certainly result in a competitive disadvantage.
CEO . Professional Inventor
8 年The smallest virus of new technology OF ANY KIND no matter if it is high tech, low tech, that has a universal competitive advantage in universal application, serving new utility to the consumers want, need or desire, and most importantly has so many positives it creates no unseen negatives must not be negated by conventional prejudicial business style. The technology of today is moving so fast that new choices must be made and those that do not accept choices will fail or seriously weaken any enterprise.