Publications
Publications
- January 1996 (Revised February 1998)
- HBS Case Collection
Japan's Automakers Face Endaka
By: Debora L. Spar
Abstract
In April 1995, the Japanese yen hit a post-World War II high against the U.S. dollar. The yen's relentless ascent affected firms on both sides of the Pacific, but fell particularly hard on Japan's big four automakers. This case explores how endaka--or"high yen"--changes the competitive environment for the automakers and how they respond to the change. Examines how macroeconomic and political shifts can dramatically affect the competitive position of firms operating in a global economy. Also describes how firms can reshape their strategies to compete even in starkly different domestic environments.
Keywords
Currency Exchange Rate; Competitive Strategy; Trade; Foreign Direct Investment; Macroeconomics; Manufacturing Industry; Auto Industry; Japan
Citation
Spar, Debora L., Julia Kou, Elizabeth B. Stein, and Karen Gordon. "Japan's Automakers Face Endaka." Harvard Business School Case 796-030, January 1996. (Revised February 1998.)