Network Building Strategy and Adaptation to New Models of Commerce: An Analysis of Japan’s Trucking Industry

Abstract

This paper presents a comparative analysis of four key players in the Japanese trucking industry, Nippon Express, Fukuyama Transporting, Yamato Transport, and Sagawa Express, in order to address the question of how the sources of competitive advantage in the logistics area are changing in the face of a new global commerce model enabled by technology and characterized by an increasing number of direct-to-consumer transactions. The analysis concludes that, while efficiency remains an important success factor, network building capability and innovative partnerships are the dominant factors leading to sales, market share, and profitability in the contemporary Japanese trucking industry. Firms with the ability to build wide-reaching networks, to augment those networks through innovative partnerships, and thus fill structural holes for parties wishing to engage in business transactions have the greatest chance of success in the industry.