Global value chains and the lost competitiveness of the Japanese watch industry: an applied business history of Seiko since 1990
Authors registered in the RePEc Author Service: Pierre-Yves Donzé
Asia Pacific Business Review, 2015, vol. 21, issue 3, 295-310
An applied business history approach offers particular insights into the lost competitiveness of the Japanese watch company Seiko and its causes. Although Seiko was the world's largest firm in the watch industry in the mid-1980s, the company experienced a huge decrease in sales during the next decade and became unable to compete effectively against Swiss watch companies that had repositioned themselves in luxury business. The focus on the evolution of global value chains (GVC) in the industry, which saw a shift from producer-driven GVC to buyer-driven GVC, highlights a major change in the 1990s. Seiko did not change its strategy despite this paradigm shift and has continued to run its foreign subsidiaries according to the producer-driven model.
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