Strengths of the Japanese Economy

Many reasons give the economy of Japan an advantage to their foreign competitors. First is how to Japanese perform quality control. Next is the adaptation of a Toyota Motor Company process that keeps only enough supplies to manufacture for a limit amount of time, while the rest are kept in reserve. Thirdly is the cooperation of moving new products and technologies from mere concept to actual production. Fourthly is the subcontractor/corporation relationship. Improvements on design and manufacturing processes are also ongoing and contribute to the continuous improvements. Lastly is the commitment of Japanese workers to the general welfare of the company.

Japan has a significant advantage in many areas because of the flexibility in manufacturing. This has allowed Japanese producers to implement changes in products more easily than those in other countries. It also allows them to effect these changes faster than competitors because they are not limited by the relationship with other manufacturers and price.

Another feature of the Japanese economy that’s considered a strength is the lack of corporate diversification. By limiting themselves to a strictly single industry, Japanese corporations only retain those corporations and companies that are directly related to their industry.