ABSTRACT
This chapter discusses some of the more important cases of specific firms and clarify the characteristics of the process of market strategy formation in Japanese businesses. In the 1965 recession, the Japanese steel industry – which had been rapidly growing at a fairly steady pace, except for short-term business downturns – confronted its greatest challenge since the war. The business environment is somewhat volatile and does not remain the same over time. The ways it changes may be classified into three types: regular, cyclical, and structural. The decisively important elements of the economic environment in connection with managerial strategy are the input market, the product market, and technology are catalysts for the creation of new managerial strategies. The Kawasaki Steel Company was originally the steel division of Kawasaki Heavy Industries. It was the government’s policy favoring business deconcentration in the postwar period that raised the issue of separating the steel division. Matsushita Denki is a well-known electric machine producer.
