Friday, October 19, 2012

Japan's Climb to the Top Cut Short

For the past 21 years, or at least since I've been alive, the United States has been at the forefront of cutting edge technology for mobile devices and the life. The notion that a cellphone or smart phone is much more than a telephone is common place and the bar has been raised. According to a U.S. data survey consumers use their phones for seven things: 1. calls, 2. texting, 3. mobile, 4. applications, 5. games, 6. social networking and 7. music. With the release of the iPhone 5 and iPad2 it's no wonder that people in the United States expect so much so fast. "Industry estimates indicate that by 2013 the U.S. will top 100% per capita penetration of mobile phone use".

This point brought me to my next thought; "If the U.S. is doing so well in the mobile technology sector, I wonder how it compares to the rest of the world"? According to Gartner, Inc. the worldwide sales of smart phones increased 24% to 172.4 million units in 2009 and is rapidly growing.  Being that mobile phones and mobile technology is a "given" in our day and age, especially in the U.S. it has only grown in other parts of the world. A U.N. report found that the number of mobile phone users has exploded in the last 10 years and that the number of global subscriptions quadrupled from about 1 billion in 2002 to about 4.1 billion at the end of 2009; and more specifically, in Africa 28% of the population now has a mobile phone, compared to just 2% in 2000. They also noted that the reason for such surges in uptake of mobile phones was marked in developing countries where "they are now an invaluable tool among the world's poor".
 
However, there are still other countries that are lagging behind. Let's take Japan for example. In Tokyo, Japan cell phones are ready for Internet and email, they double as credit cards, boarding passes and even body-fat calculators, however, it stops with Japan. While Japan has been said to be "years ahead in any innovation", according to the NY Times, it has been unsuccessful in getting business out of it. In 2009 Mr. Natsuno, who developed a popular wireless Internet service, along with a team of the best minds in the field, set out to figure out how Japanese cellphones could go global. Despite the fact that Japanese phones are designed so that even the most average person can have a super-advanced phone, the problem could not be solved. Mr. Natsuno and his team had come to the sad realization that Japan's lack of global clout was the reason behind their lack of expansion. 

When it comes to global expansion in the realm of mobile technology, Japan may be the innovators and spear-headers, but they still have a lot to learn. When it comes to expansion, among the many things that are important for countries to understand is the costs associated with opening and expanding into global markets. One of the reasons that I think Japan has failed is because of the cultural differences that exist in different countries. Many of the people that live in Japan are accustomed to a specific way of life, communication and technology, that does not necessarily mirror that of ours. When entering new markets manufacturers and developers must consider customizing their programs and software to fit that of the country they are trying to penetrate. While costs may be steeper because of the change in the product, in the long run, they will yield a high and profitable return for those countries that chose to specialize their programs and products. Another aspect to consider is the size of these mobile technology companies. In Japan where there are hundreds of different mobile technology companies it is even more difficult to compete. In the U.S. I feel that there is less competition, which is why it has been easier for many companies to grow and expand.


http://www.strategicgrowthconcepts.com/growth/mobile-technology-facts.html 

http://www.dailymail.co.uk/sciencetech/article-1158758/Mobile-phone-use-explodes-60-worlds-population-signs-handset.html




3 comments:

  1. While Japan evidently has an inability to globalize, I do not think it’s absolutely necessary to do so. According to an article published by the UK news group, The Guardian, called “Why mobile Japan leads the world,” it should be taken to account that Japan has a highly unique culture, thus a highly unique mobile technology system. Japan’s culture is historically isolationist meaning it would have trouble globalizing, but nonetheless, the fact remains that Japanese society is very urbanized and the consumer culture is very demanding. Many Japanese ride the trains to commute meaning there is a lot of “eyeball time.” As a result, many of the mobile companies create “all-in-one” technology for convenience, fun, and entertainment. Not only this, but because Japanese consumers expect a lot out of their mobile experience, companies spew out about 100 new phones a year. Half of the Japanese admitted to being obsessed with their phone, so the craze for innovative technology is driving rapid Japanese mobile advancement. In the article, it says that when Japanese mobile systems were adopted in the UK, they were not as popular, thus highlighting the difference in consumer cultures. Because Japan has its own specialized way of marketing and producing advanced technology, becoming globalized seems unnecessary and essentially burdening.

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  2. For Japan to expand globally, I think it just needs time for other countries to adapt to more advanced technologies. Before, America’s were all about the SUVs and big Hummer’s, however, as the economy started knocking on everyone’s doors and gas prices rose, people tried to find more productive alternatives. In Japan they have already created a car that runs on water (http://reut.rs/jL46Td) so that they would never need fuel. The problem is that Americans are still in the mindset that bigger is better, however once people start to learn that smaller is cheaper, Japan will start growing exponentially.

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  3. First and foremost, I agree with the assertion that the United States has been on the forefront of cutting edge technology in the phone industry and Japan is lagging. But although Japan has lagged in smartphone adoption, they still lead Asia in mobile internet usage. Also, I disagree with the statement that Japanese developers should put more energy in customizing their product for each country’s market. This would be very time consuming and they should instead focus on making a product that would be simple enough to be universally used by numerous countries. This would yield a better return on investments.
    http://www.techinasia.com/nielsen-smartphone-insights-asia/

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