The Effective Technology- and   Resource-Management Strategy of Established Japanese Company: A Case Study of   Toraya, a Traditional Japanese Confectioner

Kana Sugimoto; Takao Someya; Shin’ya Nagasawa

doi:10.20965/jaciii.2012.p0436

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JACIII Vol.16 No.3 pp. 436-443

doi: 10.20965/jaciii.2012.p0436

(2012)

Paper:

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The Effective Technology- and Resource-Management Strategy of Established Japanese Company: A Case Study of Toraya, a Traditional Japanese Confectioner

Kana Sugimoto, Takao Someya, and Shin’ya Nagasawa

Graduate School of Commerce, Waseda University, 1-6-1 Nishi-Waseda, Shinjuku-ku, Tokyo 169-8050, Japan

Received:

October 15, 2011

Accepted:

December 31, 2011

Published:

May 20, 2012

Keywords:

technology management, resource management, long-established manufacturer, sustainability, innovation

Abstract

The purpose of this paper is to ascertain the effectiveness of the management strategies of the traditional Japanese confectioner Toraya. Rapid technological development and the demands of knowledgeable customers have made growth more difficult for manufacturers. We assume that the practices of longestablished manufacturers are best for others to follow. Toraya has been a high-value-added confectioner for almost 500 years. The reasons for its sustained competitiveness are described in this paper. We use the 3Cs analysis to clarify the business circumstances of the Japanese confection industry, the 4Ps analysis to explore Toraya’s structure, the strategic experimental module analysis to show the reliable value that Toraya offers its customers, and the Value, Rarity, Inimitability, and Organization analysis to explain its long-term success. The results reveal that Toraya has employed a low-technology strategy utilizing artisanal skill instead of machines and provides an excellent consumer experience that attracts customers. This is a sustainable competitive advantage because it takes years to establish and is not easily imitated. However, Toraya’s simple and effective management practices could be adopted as industry best practices.

Cite this article as:

K. Sugimoto, T. Someya, and S. Nagasawa, “The Effective Technology- and Resource-Management Strategy of Established Japanese Company: A Case Study of Toraya, a Traditional Japanese Confectioner,” J. Adv. Comput. Intell. Intell. Inform., Vol.16 No.3, pp. 436-443, 2012.

Data files:

References

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This article is published under a Creative Commons Attribution-NoDerivatives 4.0 Internationa License.

[1] [1] T. Narusawa, “The conditions of long life companies,” The creation of soft-assets, 2002.

[2] [2] S. Nomura, “Japanese long-life companies,” NHK Enjoying to know: The person and the world, Vol.3, No.17, 2007.

[3] [3] S. Nomura, “Working for the company for 1000 years,” Kadokawa Shoten Publishing Co., Ltd., 2006.

[4] [4] I. Nonaka (Ed.), Recruit Management Solutions Co., Ltd. Organizational Behavior Research Institute, “Japanese Sustained Growing Companies-Research of Good-standing plus long life companies,” Toyo Keizai Shinposha, 2010 (in Japanese).

[5] [5] B. H. Schmitt, “The Customer Experience Management: A Revolutionary Approach to Connecting with Your Customers,” John Wiley & Sons, Inc., 2003.

[6] [6] J. B. Barney, “Gaining and Sustaining Competitive Advantage: THE LOGIC OF STRATEGIC ANALYSIS,” M. Okada (Trans.), DIAMOND, Inc., 2003 (in Japanese).

[7] [7] E-okashi.net, “Statistics on Confectionery in Japan.”
http://www.eokashi.net/siryo/siryo08.html (Retrieved July 20, 2011)

[8] [8] Act on the Agriculture & Livestock Industries Corporation, Independent Administrative Agency, “The State of the Japanese Confectionery Industry as of January 2007.”http://sugar.alic.go.jp/japan/view/jv 0701b.htm (Retrieved July 20, 2011)

[9] [9] Kinzai Institute for Financial Affairs, Inc. “11th Industry-classified examination dictionary – Japanese confection and retailing industries,” Vol.1, Jan. 25, 2010.

[10] [10] Toraya Confectionery Co., Ltd,
http://www.toraya-group.co.jp/ (Retrieved July 20, 2011).

[11] [11] M. Kurokawa, An Interview conducted by K. Sugimoto et al. (May 31, 2011).

[12] [12] T. Someya and S. Nagasawa, “Building Customer Experience and Technology Management at the Traditional Company Toraya,” Proc. of Int. Conf. on Kansei Engineering and Emotion Research, 2007.

[13] [13] M. Kurokawa, “Wagashi to ayunda 500-nen,” (500 years with Japanese confectionery), Shinchosha, 2005 (in Japanese).