"In Can Japan Compete?, the world's leading thinker on competitive strategy, Michael Porter, and his colleagues, Hirotaka Takeuchi and Mariko Sakakibara, draw upon a decade of research to untangle the mystery of Japan's economic difficulties. Doing so is critical to forecasting Japan's economic future, which is of enormous importance to companies and countries everywhere. At a deeper level, however, the book reveals the enduring principles of company strategy and economic policy in modern global competition." "With a special introduction that addresses how Japan's economic health impacts business in the United States, this groundbreaking work reveals that there have long been two Japans - the familiar one that was highly competitive and another Japan, almost invisible, that was highly uncompetitive. If the well-known Japanese government policies and corporate practices explained the nation's success, as so many people believed, why didn't they work in so many large, important parts of the economy where the model was explicitly implemented? In the areas where Japan was competitive, why was profitability so low and the cost of living for Japanese citizens so high?" "Can Japan Compete? also examines why the Japanese economy stopped generating new export industries by the mid-1980s, and why seemingly invincible industries such as semiconductors faltered." "Professor Porter and his colleagues unravel this puzzle. Incisive and thought-provoking, the book provides a compelling framework for understanding the Japanese economic roller coaster and the lessons the rest of the world should learn from it. For Japan itself, the authors conclude that what is needed is nothing less than a new national economic strategy. The book outlines the steps necessary to restore Japan's economic vitality at a time when a new direction for the nation is desperately needed."--Jacket.