Japan's strategic approach to developing hybrid aircraft technology

Country Risk and Strategic Planning

Hybrid plane: SWOT

Define and clarify mission and objectives

At present, the technology required for developing a hybrid plane is not available. Many questions remain regarding the feasibility of the product, including the ability of a battery-propelled plane to be able to fly for long distances, fueled mainly via electricity. However, the need for this particular product is acute, given the rising cost of fuel and the need for effective air transportation. Further research and development is needed into the product, along with financial and technical support for R&D.

Weaknesses

Japan's economy has been severely impacted by the recent earthquake and tsunami, and the destroyed areas will take many years to rebuild. Japan is a land-poor society, which could inhibit the manufacture of large vehicles like planes, although the manufacture of the components of hybrid planes, such as the batteries may demand less land.

Opportunities

The increasing cost of fuel at present will generate new interest in alternative methods of propelling airplanes worldwide, including investors and corporations in Japan. Interest in investing in green technology has grown exponentially.

Threats

Traditionally, interest in environmental technology wanes once fuel prices go down in the short-term, raising the possibility that there may not be sustained financing for the project. A more severe downturn in the Japanese economy seems likely, given concerns about radiation and environmental damage.

Trends

'Green' is clearly a trend worldwide -- and the trend towards smaller, lighter, and more efficient has been a long-standing trend in Japan's corporate culture. There is also a long tradition of using efficient manufacturing techniques within the nation. Japan is the founder of the JIT (just-in-time) approach to manufacturing and places a strong emphasis on quality control (JIT, 2011, Investor Glossary).

Make strategy selection

Unlike a car, which can convey some status in terms of the appearance of 'going green' with a hybrid, hybrid planes are unlikely convey a luxury image to consumer. Thus, creating an airplane that is popular and affordable amongst a wide demographic is the most feasible market strategy. Beginning research and development in Japan is a possibility, given the strength of R&D hybrid at the nation in the moment, although concerns persist regarding the ability of the nation's resources to rebound after the recent national disaster. However, engaging in a joint venture with a Japanese technology firm would be one way to capitalize upon the knowledge-based resources of the nation while minimizing some of the risks that might be incurred, due to the precarious state of the Japanese economy and geography (Chapter 7, 2011, FAO).