Table of Contents

Japanese Investment in the World Economy

Japanese Investment in the World Economy

A Study of Strategic Themes in the Internationalisation of Japanese Industry

New Horizons in International Business series

Roger Farrell

This book examines Japanese Foreign Direct Investment (FDI) in the world economy over more than five decades. It provides a unique focus on the internationalisation experience of selected industries, such as forestry, textiles, electronics, motor vehicles, steel and services as well as case studies of individual firms. Japanese Investment in the World Economy is distinctive in that it examines overseas investment by firms in the primary, manufacturing and services sectors over the period in which the Japanese economy became the second largest in the world.

Chapter 12: Defensive Strategies of Beverages and Tobacco

Roger Farrell

Subjects: asian studies, asian business, asian economics, business and management, asia business, international business, economics and finance, asian economics

Extract

OVERVIEW The Japanese tobacco, beer and wine industries expanded internationally as part of a defensive strategy, to augment their prospects of surviving as import competition mounted in their home market. Overseas investment also allowed firms in these industries to obtain marketing networks in other countries and to access foreign proprietary knowledge of production technology and marketing techniques. This kind of ‘defensive’ foreign direct investment was initially conducted through licensing of key brands, marketing arrangements and joint ventures with leading international firms. However, over time, there was a switch to more direct ownership through a series of overseas acquisitions. In the case of the beer industry, overseas expansion has occurred partly as a rivalistic phenomenon, as domestic market competitors Asahi and Kirin entered foreign markets, acquired regional competitors and obtained control over a share of the regional market for alcoholic beverages. For the domestic wine industry, licensing and marketing joint ventures with more prestigious and competitive brands have been a route to maintaining market share in Japan without a major international presence. In the case of Japan Tobacco, a sleepy domestic monopoly was awoken by the prospects of WTO-led deregulation of its protected market and the likelihood of the successful entry of American and European tobacco companies into the Japanese market. To offset this strategic threat to its position in Japan, the newly commercialised (but still predominantly publicly owned) manufacturer and distributor of tobacco products such as Mild Seven acquired the international operations of a leading US tobacco company. Through...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information