Why Japanese multinationals failed in the Chinese mobile phone market: a comparative study of new product development in Japan and China

T. Marukawa

Asia Pacific Business Review, 2009, vol. 15, issue 3, 411-431

Abstract: This industry case study examines the challenges experienced by Japanese MNEs as they transfer sources of competitive advantage to foreign markets. Despite holding certain technological advantages, Japanese mobile telephone manufacturers have performed poorly in the Chinese market. This is because the capabilities required differ between Japan and China: in Japan, handsets are sold as a part of a package that bundles together handsets and telephony services but in China they are sold as independent commodities. Japanese MNEs have the capability to develop sophisticated handsets according to the requirements of Japanese service operators, but such capability is not useful in China.

Date: 2009
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DOI: 10.1080/13602380802667387

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