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Can Japan Competeg. will change the way we understand Japan's economic performance, and the way we think about competitiveness in any economy.

Until recent years, Japan was seen as the world's most invincible economic power-where a postwar economic 'miracle' transformed the nation from poverty to fabulous wealth.

Defying economic theory, Japan was credited with creating a system that was both more egalitarian and more efficient than the capitalism of the West.

So, what went so terribly wrong? In Can Japan Compete?, the world's leading thinker on competitive strategy, Michael Porter, and his colleagues, Hirotaka Takeuchi and Mariko Sakakibara, draw upon a decade of research to untangle the mystery of Japan's economic difficulties. Doing so is critical to forecasting Japan's economic future, which is of enormous importance to companies and countries everywhere. At a deeper level, however, the book reveals the enduring principles of company strategy and economic policy in modern global competition.

With a special introduction that addresses how Japan's economic health impacts business in the United States, this groundbreaking work reveals that there have long been two Japans-the familiar one that was highly competitive and another Japan, almost invisible, that was highly uncompetitive. If the well-known Japanese government policies and corporate practices explained the nation's success, as so many people believed, why didn't they work in so many large, important parts of the economy where the model was explicitly implemented? In the areas where Japan was competitive, why was profitability so low and the cost of living for Japanese citizens so high?

List of Figures

List of Tables

Preface

Introduction

Chapter 1 The Japanese Model of Competitiveness

Early Warning Signs

Challenging the Conventional Wisdom

The Structure of this Study

Chapter 2 Challenging the Japanese Government Model

The Roots of the Japanese Government Model

Elements of the Government Model

The Role of Government in Japan's Competitive Successes

The Role of Government in Japan's Failures

Testing the Japanese Government Model

Summary

Appendix A: How the Case Studies were Developed

Appendix B: Case Studies of the Role of Cartels in

Competitive Industries

Chapter 3 Rethinking Japanese Management

The Japanese Corporate Model

Competing on Operational Effectiveness

Competing Without Strategy

Competing on Strategy

Japanese Exceptions that Prove the Rule

Summary

Chapter 4 What Does Explain Japanese Competitiveness?

Prosperi'ey and Productivity

Competitiveness and the Japanese Business Environment

Statistical Findings on Japanese Competitiveness

The Rote of Government in Competitiveness

Conclusion

Chapter 5 How Japan Can Move Forward: The Agenda

for Government

Priorities for Policy Makers

Continuing What Works

The New Economic Policy Agenda

A New Role for the Government

Utilizing Japan's Human Potential

Conclusion

Chapter 6 Transforming the Japanese Company

The New Corporate Agenda

The New Japanese Company

Conclusion

Chapter 7 Can Japan Compete?

Can Japan Change?

Catalysts for Change

The Need for a New Japanese Model

References

Index

MICHAEL E.PORTER istheC. Roland Christensen Professor of Business Administration at the Harvard Business School and a leading authority on competitive strategy and global competitiveness. He is the best-selling author of sixteen books on strategy and comp

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Japan has been in an economic slump for more than half a decade. Why did this once-strong economy topple? What do its troubles tell us about competing in the new global marketplace?. In Can Japan Compete? , world-renowned competition strategist Michael Porter and his colleagues explain why American assumptions about Japan have proved so inaccurate, what Japan must do to regain its strength, and what its journey can tell us about how to succeed in the new global economy. The research behind this book began in the early 1990s, at a time when Japan's economic success was overwhelmingly credited to the Japanese government and its unique management policies. Porter and his colleagues started by asking a crucial but previously overlooked question: If Japanese government policies and practices accounted for the nation's extraordinary competitiveness, then why wasn't Japan competitive in many of the industries where those policies had been prominently implemented? The authors and a team of colleagues surveyed a vast array of Japanese industries. This surprising book is the result of their work.

The continuing influence of Japanese government and management strategies worldwide makes Can Japan Compete? a must read for anyone competing in the global economy.