1) The Galapagos Islands are known for their unique wildlife that influenced Darwin's theory of evolution. Similarly, Japan's isolated domestic market has led to cell phone technologies that are highly evolved for the Japanese but not compatible elsewhere. 2) While isolation has advantages like protecting Japanese market share and innovating new technologies adapted for Japanese needs, it also carries risks like a stagnant economy from losing foreign market opportunities and an aging population. 3) To mitigate risks, experts recommend Japan manage a balance between their isolated "Galapagos market" and global standards, actively selling Japanese technologies and standards abroad, and investing in areas already accepted globally while marketizing unique Japanese cultural aspects.

1. Galapagos Japan Can Japan afford this situation?

2. INTRODUCTION The Galápagos Islands are an archipelago of volcanic islands distributed around the equator in the Pacific Ocean, 972 km west of continental Ecuador. Wildlife is its most notable feature. *From Wikipedia

3. INTRODUCTION The Galapagos island attracts a lot of people The Island's interesting volcanic geology, as well as its rich flora and fauna have been admired and studied by numerous travelers, scientist, and nature-lovers. And it is also the BEST diving destination in the world.

4. BUT,

5. INTRODUCTION A theory changed this beautiful island into the symbol of devolution “The country was compared to what we might imagine the cultivated parts of the Infernal regions to be. The marine iguanas that were common along the shores of all the islands were 'hideous-looking creatures, of a dirty black color, stupid and sluggish in their movements’”

6. INTRODUCTION Our proud economic experts couldn’t miss this kind of concept EconomicConcept BiologicalConcept The case of developed but isolated market could be cited throughout the devolution theory on biology

7. INTRODUCTION Nowadays, the situation of Japan is similar to Galapagos Theory Japan’s cell phones are like the endemic species that Darwin encountered on the Galápagos Islands : fantastically evolved and divergent from their mainland cousins— explains Takeshi Natsuno, who teaches at Tokyo’s Keio University. July 20, 2009, the New York Times. Japanese phones suffer from ‘Galapagos Syndrome’ and are too complex to survive abroad

8. INTRODUCTION Experts said that the high standard of Japanese products is one of the causes for Japan’s current situation Very High DomesticStandard Resulting inStrongCompetition DemandinghigherStandard Focusing ondomesticstandard Inducingquality-centricpolicy IgnoringGlobal Standard

9. INTRODUCTION So how should we evaluate this ‘Galapagos Japan’? Positive or Negative? Encourage or Discourage?

10. Galapagos Japan Positive Effects

11. POSITIVE EFFECTS 1. Superbly adapted to Japan’s environment Suits Japanese culture, lifestyle, environment Meet Japanese needs very well Examples: Japanese commute a lot on trains=> cannot interact much with people => need entertainment 3D TV & Games High tech games Felica

13. Suits Japanese culture, lifestyle, environment

14. Meet Japanese needs very well

15. Examples:

17. POSITIVE EFFECTS 2. Evolved into “new species” not seen elsewhere Galapagos will produce “new species” Advance technology and innovations Examples: Felica QR Code POTENTIAL TO EXPORT THESE INNOVATIONS! = Sekigaisen-Tsushin

19. Very difficult for foreign competitors to enter the market

20. Cause: Incompatibility in technology and differences in needs

21. Examples:NO FELICA?? NO ANIMATED EMOTICONS?! NO TV??? REJECT!!!

22. Galapagos Japan Negative Effects

23. NEGATIVE EFFECTS Isolation Stagnant Economy Illustrations by Rune Buick

24. NEGATIVE EFFECTS Population Highest % of elderly citizens 21% over 65 years old Shrinking labor force

25. NEGATIVES Language and Culture 日本語 ENGLISH trade market share

26. NEGATIVES Japan’s Cell phone Industry Rich Content and Email Service YET Failed to expand market share outside Japan

27. NEGATIVES Digital Broadcasting Only a few South American countries signed with the new system Even though Japan’s technology is advanced

28. NEGATIVES Construction Industry Earthquakes High Cost to Install No demand in Korea or Brazil .. etc

29. Galapagos Japan Recommendations

30. RECOMMENDATIONS Conclusions – beyond galapagos Galapagos Japan is a good situation for the development of technology in Japan Create a new market Isolated Market Global Market Competitive market

31. RECOMMENDATIONS Conclusions – beyond galapagos But in the long run Japan population is decreasing and the country starts to lack workforce and consuming market is reducing

32. RECOMMENDATIONS Conclusions – beyond galapagos Instead of extinguishing Galapagos, Japan should try to manage a mid ground

33. RECOMMENDATIONS Conclusions – beyond galapagos Try to create products that manage inside and global standards Be more active in selling their standards for other countries

34. RECOMMENDATIONS Conclusions – beyond galapagos Investing in the areas that already have a good acceptance outside Japan Make the specific characteristics of Japanese culture marketable