Case report on Japanese facsimile industry
1. Japan had started using facsimile machine in 1960’s to facilitate usage, Japanese companies started manufacturing the machines. Japanese tradition required the machines to be accurate as the pages transmitted were hand written given the complexity of the language, Japanese manufacturing companies had to have the most advance technologies to make the transmission as accurate as possible. There was little interest in USA for machines as it was more depended on telexes and typewriters, also courier services helped deliver typed documents. So there was less incentive for an US company to develop facsimile machines. Europe was even less interested in the machines as they had invested heavily in telex infrastructure. When CCITT developed a standard for facsimile machines, Japanese were the first to respond to the requirements and were quick in acquiring the new technologies from USA companies. They understood the importance of facsimile machine in the business world. They were also quick to understand the importance of manufacturing in foreign countries, which would reduce their cost of manufacturing. They were also quick to introduce new products every six month. When the standard was developed and regulation was relaxed Japanese companies where in the best position to take advantage of the situation. This all factors helped Japanese companies become the world leaders in the facsimile industries.
2. USA and European companies need to invest heavily in R & D facilities. Instead of selling their products to large companies with large accounts they should start leasing their machines. They should start manufacturing in foreign countries to offset their price. USA companies have a technological advancement in electronic goods; they should use this advancement to their advantage. Korean firms were late to enter facsimile industry, but were able to get some market share. They have experience of manufacturing facsimile...