01/06/1999

Why Comprehensive Electronics Makers are Undergoing Reorganization

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Introduction

The comprehensive electronics manufacturers， who form the core of one of Japan's key indus-tries，are initiating extensive reorganizations.

This paper looks at Hitachi and Toshiba， who began reorganizing their corporate structures inApril. We trace developments in the electronics industry in Japan and the U.S. since the1980s， as well as the business results of the five comprehensive electronics makers， to illumi-natethe factors behind the reorganization movement. Finally， we briefly discuss the issuesconfronting the comprehensive electronics makers in the future.

The reorganization activities of Hitachi and Toshiba are being followed with keen interest byindustry observers because of the large impact expected on the entire industry.

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