I am an editorial writer at The Korea Times, focusing on foreign policy, North Korea and domestic politics. My key areas of interest include North Korea, foreign interference in elections, election integrity, cyberattacks and human rights. Prior to joining the Editorial Board, I served as both Politics Desk editor and Culture Desk editor. During my career, I have reported on the Presidential Office under the Lee Myung-bak administration, the Ministry of Foreign Affairs and the National Assembly.
'Thriving' unravels secrets of corporate longevity
Oh Tae-heon, author of “Thriving on Core Business: The Power of Japanese Small Companies” / Courtesy of the author
By Kang Hyun-kyung
Author says stay focused, be stubborn with core business
By Kang Hyun-kyung
Every business encounters good and bad days. Some survive, some take a leap forward through crisis and many are pushed out of business. Why do some businesses thrive, while others fall prey to misfortune?
Economist Oh Tae-heon, author of “Thriving on Core Business: The Power of Japanese Small Companies” published by Samsung Economic Research Institute, observes long-living companies have some common traits.
Sharing his findings from case studies of 30 small but strong Japanese companies, the author says they are found to “stay focused, think outside the box, remain stubborn with their business focus and never waste resources to diversify business” even though their businesses have gone extremely well.
Japanese pencil manufacturer Kita-boshi is a prime example showing how the small company with some 30 employees has managed to survive, and even thrive, despite the tough times that unfolded with the advent of the personal computer.
The PC revolution was a groundbreaking change that reshaped industries. It has changed the way we live, work, communicate and even lead our lives.
Kita-boshi was hit hard. Demand for pencils fell sharply as word processors were being predominantly used and it put the pencil manufacturer at risk of closing down.
But Kita-boshi President Kazutoshi Sugitani didn't back down. After years of endeavor to make his business work, the pencil manufacturer came up with the idea of “pencils for adults,” not children. Their brand-new pencils were a huge success with over 1 million pencils having been sold so far.
Sugitani didn't stop there. To cut costs, he turned his eyes to sawdust which accounts for 40 percent of the manufacturing material and tried to find ways he could recycle it.
Mokunensan, clay made from sawdust mix, is the brainchild of Kita-boshi's years of endeavors to recycle sawdust. The eco-friendly clay became a big hit.
Then the pencil manufacturer unveiled paint made from wood after years of collaboration with Tamagawa University. Their wood paint created a new genre of art_ wood painting.
Author Oh claims that there is no such thing as an industry doomed to sink.
“We've heard a lot about the recession that lasted for two decades in Japan from the 1980s to the early 2000s. Japanese people called them lost decades. Those times would have been cruel, particularly to small- and medium-sized companies,” he said. “How did they manage to survive? I presume that the crisis, albeit painful, led them to search their souls to find what went wrong and discover their strengths. It's noteworthy some companies were able to find a way to survive even though their business partnerships with large companies were cut.”
Oh is a Japan expert. After completing his doctoral degree in economics at the University of Tokyo, he gained extensive experience in think tanks, including Daewoo Economic Research Institute and Nomura Research Institute, before he joined Kyung Hee Cyber University as professor of Japan Studies.
“Thriving on Core Business: The Power of Japanese Small Companies” published by Samsung Economic Research Institute
Japan is well-known for corporate longevity.
Tens of thousands of Japanese companies were founded over a century ago and around 20 of them have over 1,000 years of history.
“Japanese companies rarely change their business focus. Many of the small but strong Japanese companies I researched were determined to keep their business going. They never back down. Their family business became corporate and they rarely diversify their business even though they are successful. Heirs focus on ways to upgrade the business they inherited from their father and grandfather. Few of them pursue expansion.”
The author says artisanship and an uncompromising spirit lie at the heart of all small but strong Japanese companies.
He cited an unnamed CEO of an Osaka-based small molding company to remind the readers of his single-minded focus on, and unwavering passion for, his business.
“I feel comfortable whenever I sit down in the corner of my factory to listen to the sound of each machine that is operating. It is like background music to me. When I hear the sounds, I can figure out which machine has a problem,” the Japanese businessman was quoted as saying.
As long as a man like him who has a master level of understanding of his business stays in management, Oh said Japanese companies will be able to continue to grow, regardless of crises.
The author said his case studies of Japanese companies have some valuable implications for the newspaper industry as well.
“It's true that in the media, the primary focus has been shifting to digital from physical newspapers. But I do believe the newspaper still has its strength and can survive in the digital age,” he said. “The problem is that I have never seen any significant endeavor in the media industry to overhaul the way newspapers work. Reporters or other staff can play a role to improve newspaper, but revolutionary changes hinge on management.”