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Japan PESTEL & Porter's National Diamond Analysis

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Rosie Peace

on 8 January 2014

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Transcript of Japan PESTEL & Porter's National Diamond Analysis

Political Landscape
Prime Minister - Shinzo Abe
Aging & shrinking population
Japan is one of the leading nations in the fields of:
-Scientific research
-Medical research
Porter's National Diamond Consumer Electronics Industry
By Rosie Peace
Social Landscape
Image by Tom Mooring
Japan PESTEL & Porter's National Diamond Analysis
Environmental Landscape
Previous reliance on nuclear energy
Legal Landscape
Slow legal procedures
Economic Landscape
World's 3rd largest economy
Technological Landscape
Japan is a democratic country
Constitutional Monarchy
Political Instability due to different governing bodies of The House of Representatives and The Upper House
Major aid donor
Vital source of global capital and credit
Well developed
Technologically advanced
Manufacturing- 27.3% GDP (2011)
Services- 71% GDP (2011)
Strong electronics industries
Decrease in global demand and exports resulted in a recession in 2008
Economy contracted again when earthquake in 2011 disrupted manufacturing
Long term challenges for Japan:
-Continuous deflation
-Aging/shrinking population
-Reliance on exports to drive growth
Low fertility rates
Minimal net immigration
Growth rate to decline by 25% -2050
Government encourages birth rates by offering benefits to employees
3rd largest budget for research and development
Following tsunami and nuclear meltdown more use of fossil fuels
2012- Government implements policies to promote reuse and recycling of all resources
shortage of land fill sites
Illegal waste dumping

Improving waste treatment facilities
Laws apply uniformly nationwide
No principle of product liability
Civil law nation
Defined by statues
(SM0269 Lecture 11)
Factor Conditions
Demand Conditions
Firm Structure, Strategy & Rivalry
Related & Supporting Industries
Strong workforce
Skilled & unskilled workers

Technologically advanced
Manufacturing know how
Strong transport infrastructure
Major R & D
3rd Largest R & D budget
High demand for consumer electrics from home nation and internationally
Fairly moderate rivalry
Structure- few large firms
Distribution by smaller retailers
Strong and advanced R&D is vital to electronics industry
Importance of R&D is reflected by Japan's ranking- 3rd highest R&D budget
Full transcript