Nasdaq Japan

1
Nasdaq Japan

• Analysis based on Concepts in Chapter 1

2
Use of Models

• Nasdaq Japan seen through
• Fig 1.2 Tech Business Evolution
• Fig 1.3 Value Chain
• Fig 1.4 Market Roles
• Table 1.1 Industrial vs. Network Economy
• Fig 1.5 Competitive Forces Model
• Fig 1.6 Strategic Grid

3
Tech. Business Evolution
Agricultural Economy
Industrial Economy
Network Economy
Craft work Factory work
Knowledge work
The Nasdaq model worked in the US while the
economy was undergoing rapid change from
industrial to post-industrial to network models.
There were plenty of opportunities for a
Nasdaq-like entity to make money in the new
network economy. The technology was in place,
people welcomed mediated investing, and
technology use and familiarity was high
(referring to segment in Lecture A on
intermediation)
4
Value Chain
Data
Information
Knowledge
RD
Pro- cure- ment
Pro- duc- tion
Mar- keting Sales
Ser- vice
Facilities Equipment
People
Technology
There seemed to be opportunities for Nasdaq in
terms of production (actually running the
exchange), marketing and sales, servicing share
purchasers, procurement (membership) and even RD
(creating software-driven markets). Nasdaq
seemed to have a good grasp of facilities,
equipment, technology and market.
5
Market Roles
Sup- pliers
Pro- ducers
Distri- butors
Custo- mers
Nasdaq Japan was to be a producer in the sense
of offering the market, but additional roles of
suppliers (the listed companies), distributors
(investor support services) and of course
customers (those wishing to buy and sell shares).

6
Industrial vs. Network Economy

• Criteria for economic success
• Technological innovations
• Operating innovations
• Management innovations
• Social/regulatory innovations
• Length of time to achieve economies
• Dominant industry power

In the network economy, Nasdaq seemed like it
would be a winner all the innovations were in
place (in the US). But Nasdaq Japan fell victim
to a different social system and wanted changes
too quickly.
7
Competitive Forces Model
Substitutes
Stock Exchange Industry in Japan/World
Suppliers
Buyers
Nasdaq Japan could not lock in suppliers or
buyers. They couldnt build barriers to entry to
lock out new entrants and substitutes.
New Entrants