APPAREL

DISTRIBUTION

AVINASH KUMAR 006

SUMIT RAJESH PATIL 033
SHREYO CHAKRABORTY 015
VINAY KUSHWAHA 034
NIRMALYA BHATTACHARJEE 011
THIRUPATHI KANNAN 045
HOW DOES THE VERTICALLY DISINTEGRATED DISTRIBUTION
SYSTEM IN
JAPAN COORDINATE ALONG THE VALUE CHAIN
It is an industry where firms pick organizations and contractual structures to maximize
their competitive advantage
It coordinates using cross market contracts and routinized long term relations.
Firms use economies of scale and economies of scope as well in different situations to
their advantage.
DO YOU THINK THAT THE VERTICALLY DISINTEGRATED SYSTEM IN
JAPAN IS INEFFICIENT? WHY?

The system is efficient because they follow straight forward cost based rationale in their
practices.
Highly competitive market left little room for inefficient distributional practices.
The W/R ratio used by the US trade negotiators was inaccurate to measure efficiency.
The relative cost of foreign goods to Japanese goods fell so the consumer shifted to
foreign goods.
WHY ARE THE US TRADE NEGOTIATORS PRESSING FOR CHANGES IN
PRACTICES IN JAPANESE DISTRIBUTION SYSTEM

They found those practices hard to understand.

In their view Japanese markets was opaque to foreign investors.
They were not able to understand the disintegrated nature of Japanese apparel industry.