Professor Elam

WednesdayAugust 15, 2012

How Japan Lost Its Electronics Crown is an all too familiar story of how winners lose their way. 

Let me take you back a few decades. Soldiers returning from Viet Nam in the1960s and 1970s often brought back  fancy component stereos made by Sansui or Yamaha or Kenwood. The only thing comparable in the US was either the expensive but high quality MacIntosh or the assemble it yourself Dynakit.  Sony made the best television at that time, with its three color gun Trinitron. And so the idea that Japan equalled quality became embedded  in the American buyer. American dealers were aghast when Sony announced it would start building the Trinitron in the US to better meet demand. The US dealers were certain quality would suffer. 

Now fast forward a few decades. Samsung, a Korean company, is  a major player. Hyundai and Kia produce startling designs looking for all the world like the much more expensive Mercedes sedans. 

We study such concepts in managerial cost accounting. Now Ford GM Chrysler are catching up in both quality, power, and fuel economy with Honda and Toyota. 

As George Jones might say, the race is on.