The Ohmae Report vol.185

My favorite articles from Ohmae Kenichi Report vol.185 with my memo.


  • Ultimate Reform Proposal for JAL and Japanese Government

Why reform plan by JAL and Japanese government won’t work? They are only trying to downsize what they are: making miniature version. Think about Jet Star success. “Cutting” cost only weaken the organization. Start over, and build from scratch. but use know-how from the past. If they work, we can scrap the old and move entirely to new/compact/effective model. Yeah, that makes sense.

  • New business model to beat deflation spiral

Price as perceived value. 1000 yen jeans vs 100000 yen Moncler jacket. Don’t only lower the price, but add new value/function. Going to foreign market is another way.

  • Toyota meant to be in housing industry

There are reason why Japanese house are expensive. There are regulation protecting Japanese parts provider. We can’t just buy cheaper materials and equipments from foreign market due to this regulation (JIS, JAS, etc). Without regulation, it is possible to build new house with the same cost of “reforming” old house. 

What Toyota has is perfect for providing house. CAD/CAM, JIT, Global manufacturing/buying point. They also has power to beat the regulations. Toyota is now under strong criticism, it will end eventually. Another Toyota empire may arise..?

Successful housing business will strengthen Toyota: with stronger yen, Toyota can import cheaper parts for house, with weaker yen, Toyota can export more cars. Toyota may just become unshakable.