The Japanese automobile industry is one of the largest in the world, with Japan currently the third largest producer. Major Japanese automakers include Toyota, Honda, Nissan, and Suzuki. The industry has been a top three producer since the 1960s. It also leads in manufacturing SUVs and sports bikes. A PEST analysis indicates the industry benefits from high R&D investment and innovation culture but faces threats from natural disasters and an appreciating yen.
2. Introduction
The Japanese Automobile industry is one of the most prominent and largest
industries in the world.
Japan is now currently the third largest automotive producer in the world with an
annual production of 9.9 million automobiles in 2012.
Japan has been in the top three of the countries with most cars manufacture since
the 1960s.
Japan Car company are producing number one SUV in the world and Top ten
Sports bike ( Honda, Kawasaki)
Japanese zaibatsu (business conglomerates) began building their first
automobiles in the middle to late 1910s.
In the 1970s Japan was the pioneer in robotics manufacturing of vehicles.
6. Japan Political Analysis
Structure of government (multi-party parliamentary representative democratic Constitutional
monarchy )
Government policy agenda
Political agenda
Japan Economic Analysis
GDP ($5.964 trillion) GDP Growth rate -6,8% (Q2 2014 )
inflation (3.2% (May 2014)
GDP Contribution By ( Agriculture 1.2%, Manufacture 27.5% , Service sector 71.4%)
Foreign direct investment in industry ( Automobile 16% )
Export :- Car , electronic devices and computers.
Import :- Raw materials such as oil, foodstuffs and wood
7. Japan Social Analysis
Demographic analysis (Population 126 million)
106,000,000
96,000,000
2,000,000 125,000 1,500 600
Shinto Buddhism Christianity Islam Theravada Buddhism
Judaism
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
Series1
Japanese diet:- Rice , seafood, beef, pork, chicken, dairy, vegetables and fruits.
Japanese-style noodles
Human development index (17 among the 174 countries )
Dress( Western , Kimono)
8. Japan R&D and Technological Factors
R&D expenditure in Japan ( 3 Rank R&D)
Impact of technology in industry
Technology policy
http://www.scribd.com/
http://www.ukessays.com
10. Strength
Reliability
Demand of Environment friendly vehicle
Innovation Culture
High R&D Investment
Number SUV producer country
Popular automobile industry
Excellence Manufacturing
11. Opportunity
Global Demand for the Environment friendly Vehicle.
Relaxing entry barriers is opening up more markets for entry.
Demand of Electric Car
Increasing fuel price
Demand of Tricity
12. Weakness
Europe Passport
High Energy Price
Japanese Car Makers Rally on Weak Yen
High Maintenance cost with Japanese vehicle.
Branded as having uninteresting car designs
13. Threat
Natural Disaster
Appreciating
Raising raw material Price
Domestic market covering by foreign player
Business model copying by US and Europian
http://jama.org/japan-auto-industry
http://www.newsonjapan.com/autos