Sea Change: Pacific Asia as the New World Industrial Center

Sea Change: Pacific Asia as the New World Industrial Center

by James C. Abegglen, Abegglen
     
 

Enormous economic growth in East Asia is changing the very structure of world business and industry. In this brilliant analysis of East Asian politics and markets, James Abegglen shows the causes and consequences of the historic shift from the North Atlantic to the Pacific. He argues that, with some 900 million consumers, East Asian economies continue to grow several… See more details below

Overview

Enormous economic growth in East Asia is changing the very structure of world business and industry. In this brilliant analysis of East Asian politics and markets, James Abegglen shows the causes and consequences of the historic shift from the North Atlantic to the Pacific. He argues that, with some 900 million consumers, East Asian economies continue to grow several times faster than the world average due to three great forces: the move of Japan lo world industrial and financial leadership; the political independence and stability of East Asian governments dedicated to economic growth; and the rise of overseas Chinese entrepreneurs whose business genius sparks much of the change.

Through detailed studies of the organization and strategies of companies in each country, with penetrating insights that only an insider could bring, Abegglen reveals for the first time the immense opportunities as well as the obstacles that every Western manager with global aspirations must consider before investing in production or opening markets in Pacific Asia. The failure of Western companies to capitalize on these markets, Abegglen warns, has the strategically disastrous consequence of allowing competitors to dominate market share and gain industry leadership by exploiting the high growth without competition.

With numerous examples, Abegglen assesses the range of strategic options for Western companies in East Asia. Nike, he shows, has taken full advantage of the cost and speed of production in East Asia, while keeping its high-value added operations of design and marketing in the West. Several industrial electronics companies such as IBM, AT&T, and Uniden have followed other strategies,including building world-scale facilities, engaging local governments for shared development, and making the region a center for corporate decision making. These strategies, Abegglen argues, take full advantage of East Asian industrial growth and competence, while forestalling the growth of competitors.

Finally, Abegglen discusses the true strategic issue in East Asia: commitment. Western firms, he argues, must be willing to put at risk the capital, technology, and human resources that this competitive environment requires. Effective positioning will not be easy but will determine the winners of the competitive race into the twenty-first century.

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Editorial Reviews

Library Journal
In this timely, clearly written book, Abegglen (coauthor, with George Stalk, of Kaisha, the Japanese Corporation , LJ 12/85) shows how the enormous economic growth in East Asia is changing the structure of world business. The work presents an astute analysis of East Asian markets and politics and illustrates the ``sea change'' now underway as the center of world industry moves from the North Atlantic to the Pacific. Using extensive company examples and economic statistics, Abegglen provides studies of each country (Japan, China, Singapore, Taiwan, South Korea, and the Southeast Asia countries). He discusses opportunities and obstacles that every Western manager with global aspirations should consider. For example, networks, groups, and growth are examined; trading blocs, political and military risks, and implications for the United States are also addressed. This refreshing work is recommended for most business collections.-- Joseph W. Leonard, Miami Univ., Oxford, Ohio
David Rouse
There have been so many recent books profiling the advantages, opportunities, and benefits of doing business among the burgeoning Pacific Rim nations that one would be hard-pressed to suggest one more title. However, Abegglen, a professor of international business at Tokyo's Sophia University and coauthor of "Kaisha: The Japanese Corporation" (1985), includes an analysis of Japan's growing role in the region that makes "Sea Change" unique. He also investigates often-overlooked Asian economies, such as Indonesia, the Philippines, and Vietnam; and he warns that U.S. companies must be willing to take risks in this "new world industrial center." While others have criticized companies like Nike for exploiting cheap capital and human resources in Asia, Abegglen holds that company up as a model and also examines the growing presence of other firms, such as IBM, AT&T, and Uniden. Recommended for both large business and international relations collections.

Product Details

ISBN-13:
9780029001554
Publisher:
Free Press
Publication date:
02/07/1994
Pages:
290
Product dimensions:
6.39(w) x 9.58(h) x 1.17(d)

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