Asia's Computer Challenge: Threat or Opportunity for the United States & the World?

By Jason Dedrick; Kenneth L. Kraemer | Go to book overview

TABLE 7-1. Global Distribution of the Hard Disk Industry, 1995
Company
Nationality
(market share)
Location
of Final
Assembly
(% of total)
Employment
(thousands)
Employment
(% of total)
Wages Paid
(share of total)
United States 88.4 4.6 58,532 20 42.2
Japan 9.4 15.5 19,234 7 23.9
Singapore 0 45.0 33,051 12
Malaysia 0 9.6 35,790 12
Thailand 0 7.8 37,219 13
SE Asia subtotala 0 64 117,388 41 12.9
China 0 2.2 28,740 10
Other 2.2 15.3 74,635 26 21
Total 100 100 287,059 100 100
Source: Peter Gourevitch, Roger E. Bohn, and David McKendrick, "Who Is Us? The Nationality of Production
in the Hard Disk Drive Industry,"
The Data Storage Industry Globalization Project ( La Jolla, Calif.: Graduate
School of International Relations and Pacific Studies, University of California, San Diego, 1997).
aIncludes Singapore, Malaysia, Thailand, Philippines, and Indonesia.

even though they kept a higher share of employment in their home country, Japan's total employment in the industry was less than 20,000 in 1995, compared with more than 58,000 in the United States.


Conclusions

In conclusion, we would argue that companies must work for the good of their owners, workers, and customers, focusing on their own capabilities and taking advantage of other capabilities they need wherever they can find them. Their challenge is to use the global production system to get the best products to the market on time and at the lowest cost. The challenge for countries is to develop capabilities that are needed by the global production system, taking into account each country's existing capabilities and the strengths and weaknesses of local companies and industry structures.

Company success can be measured by standard indicators such as profitability, growth, market share, and technological leadership. The proper measures of country success depend on the country's circumstances. For some, total employment is critical, while for others it will be value added or wages paid. It would be wrong for Thailand to measure its success in disk drives by looking at the market share of Thai-owned companies, just as it would be wrong for the United States to gauge its position based on the share of final assembly located in the United States. Countries need to set realistic objectives and identify meaningful indicators to measure their success.

While company and country success can conflict at times, this need not be the case. The key to developing policies that align company and country

-278-

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Asia's Computer Challenge: Threat or Opportunity for the United States & the World?
Table of contents

Table of contents

  • Title Page iii
  • Preface and Acknowledgments v
  • Contents xi
  • List of Figures xv
  • List of Tables xvii
  • 1 - Competing in Computers 3
  • 2 - Globalization of the Computer Industry 28
  • Conclusions 71
  • 3 - Japan and the PC Revolution 76
  • Summary 90
  • Summary 104
  • Conclusions 113
  • 4 - Asia's New Competitors 116
  • Conclusions 143
  • Conclusions 172
  • 5 - Asia's New Competitors 174
  • Conclusions 209
  • 6 - Findings from the East Asian Experience 211
  • 7 - Lessons for Companies and Countries 254
  • Summary 263
  • Conclusions 278
  • 8 - Competing in Computers in the Network Era 280
  • Conclusion - Asia's Computer Challenge 319
  • Appendix 321
  • Notes 325
  • References 343
  • Index 353
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