The Trade War USA vs China. What we can learn from Japan about it?

In the not distant past we have had a situation where USA was imposing tariffs and quotas on Japanese car manufacturers. What happened from it today, the best selling cars in the USA are Japanese. But how?
First the present situation, we have USA and China throwing at each other tariffs combined worth over $150Bln, business will suffer and at the end those who are not innovative enough or do not understand strategy well may end up losing market share, profit and pay the highest price close the business. 

USA and China can learn something from Japan, even thou it is not straight forward the same situation, and it has extremely wider range of goods that are affected, but as inspiration for the strategists, this can help many to think for the best solution out there to evade the business suffering from this. 

I wrote the paper in 2015 as part of my MSc in Operations and Supply Chain Management at Liverpool University. Here is part of it. 
Many successful companies are using ancient strategy for market penetration and successful operating. Here is an example of Japanese car manufacturer of how they have used Sun Tzu’s military strategy in order to penetrate the USA luxury car market, which from today we can see it is extremely successful.

The Japanese car manufacturers have used Sun Tzu’s offensive strategy as it was used by him in ancient times. What they did, was strategically attacking the market and using the hurdles in their favor. As the exports begun to rise, USA has imposed a lot of market protecting measures such as import fees, tariffs, quotas, but have not done much to alter the competitiveness of US manufacturers, which was very bad strategic move.

All of that helped Japanese car manufacturers even more in the attack of the US market and they have now taken and are ruling one big part of it (Marber, Kooros, Wright, & Wellen, 2002). The best strategic move that helped to enhance the market share and helped them to stay there and grow even more was at first offering to the customers a tangible value.

After the establishment of the tangible values, the manufacturers have the freedom to offer intangible values, which is how they have entered the luxury car market and they are here to stay for a long time.

They have followed the classical principles of Sun Tzu strategy as presented (Marber, Kooros, Wright, & Wellen, 2002):

1. Strategic Deliberation;
2. Application of Force and capabilities;
3. Conduct Operations and Tactics.

With this they have brought diversified products and services that have made the Japanese car manufacturers preferred by customers.
Read the whole article at the following link:

Risk warning!
Trading carries a high level of risk to your capital and may result in losses that exceed your initial deposit. You should first be aware of the risk and know what you do before you proceed with trading. Supplied information is not advice.

Author: Blagoja Pazarkoski, mCMI. Owner and Mentor at The Trade Academy.


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US Closing Report 05 Apr 2018


European Midday/US Morning Report 06 Apr 2018

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