Cracking the Code: Japanese Software Strategies in Asia

  • Trevor H. Nakagawa


Although the absolute size of European and North American software markets dwarf those of developing Asia, that situation is rapidly changing (see Table 7.1 and Figure 7.1). Until the early 1990s, Asia has been no more than a peripheral part of the overall strategy of most software companies.Today, it forms a major strategic focus for many of the biggest players. With continuing economic growth, growing middle-classes, well-educated workforces, stable political systems, and expanding technological bases, East Asian computer hardware and software growth has been impressive throughout the past decade, reaching consistent annual growth rates of 30 percent in some countries (see Figure 7.1). Because the software industry is characterized by network externalities and high fixed costs, many believe that first-mover advantages are particularly strong in this industry.2 Accordingly, firms compete vigorously for market share in the promising Asian region to establish a foothold for the upcoming Internet battles.


Foreign Direct Investment Strategic Alliance Asynchronous Transfer Mode Software Industry Japanese Firm 
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© Vinod K. Aggarwal and Shujiro Urata 2002

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  • Trevor H. Nakagawa

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