Professional Documents
Culture Documents
Morita
Morita
akio morita
KIO MORITA was not only a unique citizen of Japan, but also
a unique citizen of the world. Coming from a society that generally de-emphasizes the importance of individuals, he was a
unique and distinctive individual. According to some opinion polls, his
was the most recognizable Japanese face in the world. His name was
generally better known in the West than that of any other Japanese citizen (including Japans prime ministers). Sony, the company that his
creative and entrepreneurial energies made so uniquely successful, was
among a handful of the best-known brand names in the world, and
was probably the single best-known name at the confluence of quality
and brand recognition in the minds of global consumers.
Akios success in putting a human face on the austere faceless
image of Japan, Inc., in the West (and of coming to personify the Japanese economic miracle in the process) is legend.
His entrepreneurial origins would be recognizable to any American
entrepreneurstarting a company with Maseru Ibuka in the basement
of a war-devastated, bombed-out department storewith $500 in borrowed cashand hawking tape recorders from the back of a pickup
truck to a generation of Japanese consumers who had no idea what
they could possibly be used for. From there it was on to his seminal
visit to Bell Labs in the early 1950s, when he looked at the best of
American researchthe transistor (for which its American inventors
saw only a small niche market in hearing aids). Following up on
Ibukas vision, Akio had his Eureka! moment at Bell Labs, foreseeing
the future of the transistor-based microelectronics that was, of course,
at the heart of Sonys success in transistor radios, but is also the core
technology of the entire computer and consumer electronics revolutions of our times. Having once been stung in Europe to learn that
Westerners in the 1950s equated Made in Japan with toys and
cheap, poor-quality items like the little umbrellas floated in cocktails,
he would go on to oversee breakthrough developments in color television, camcorders, video recorders, and the Walkman, among thousands of other Sony products that helped redefine Made in Japan
as a phrase embodying leading-edge technology, quality, and high
customer satisfaction. It would be hard to imagine any other Japanese embracing American culture in the high-profile (and totally natural) ways Akio did, whether appearing in the famed Do you know
me? series of American Express commercials or embracing the
pink-haired punk rock star Cyndi Lauper on the cover of the New
York Times Magazine.
But Akio was not just a unique Japanese. As I have said, he was
also a unique citizen of the world. He not only understood the need to
put a human face on Japanese business; he had tremendous insights
[214]
biographical memoirs
215
that related to the global economy and to issues far beyond the parochial interests of Japan. He was a vigorous exponent of globalization
and understood probably better than anyone that it was going to be a
way of life.
He also understood that there would be problems with globalization and challenges to this process. He envisioned putting in place a
framework that could support globalization in the face of inevitable
inequities, disparities, and the kind of criticism that we saw so recently
after his death at the WTO talks in Seattle in 1999. Akio favored not
just globalization in the abstract, but something he called global
localization. Under his formulation of global localization, multinational companies should strive to manufacture and create jobs in local
markets, transfer technology and skills, defend the environment, and
otherwise contribute as good corporate citizens building up local
and regional economies around the world. Sony, under his leadership
and today, is an exemplar in these areas. Akio articulated a visionary
proposal for global economic and business harmonization, which he
discussed in a series of path-breaking articles for one of Japans leading intellectual publications. I encouraged him to share these views
with the English-speaking world. He did this, and added even more
to the argument in a major article for the Atlantic Monthly in June
1993. Almost alone among leading Japanese voices of that time, he
recognized that Japan would have to give up a lot in terms of more
open access to its markets, deregulation, and so forth, in order to be
a credible participant in a genuinely harmonized new world economic order.
Akio contributed to the development of the English language more
than once, with product names such as the Walkman. Even the name
of Sony was chosen so as not to sound Japanese. It drew from the Latin
sonus and the English sound and the expression Sonny Boy, an
English expression that was popular in Japan at that time to describe
someone who had a young and pioneering spirit. But Akios Englishlanguage phrases designed to express political, economic, and social
ideas have also become part of the global public domain. In addition to
global localization, he spoke often of fate-sharing to express the
mutual responsibilities of business, government, and labor on the one
hand, or of the United States and Japan on the other. He spoke of
cooperative competition between companies. His thinking on this
subject helped lay the philosophical basis for many of todays partnerships between companies that are also competitors. He applied this
theory to national economies as well, offering a rational view of how
the United States and Japan could compete and cooperate economically to our mutual benefit. He did not coin the term human capital,
216
akio morita
biographical memoirs
217
factories and their research labs. Just as Land had predicted, I was
amazed by what I saw. Indeed, I felt I had seen the future. I had seen
how innovations in product markets, technology, and manufacturing
would come to revolutionize the consumer goods industry.
Some years later, I had moved from the business world to the political world, and was working in Richard Nixons White House, first as
the presidents point man on international economic affairs and later
as secretary of commerce. In these capacities, I saw Akio Morita several timesand in a new light.
The U.S. trade deficit with Japan had just begun to be statistically,
and certainly politically, significant. But even when it amounted to only
a few billion dollars, I saw that it could become a major economic and
political issue over time. As a result, I was deeply involved in trying to
persuade Japanese officialdom to liberalize trade, open markets, and
revalue the yen to a more credible level. Innumerable Japanese trade
and political delegations came to see me in those days, trying to convince me that it was impossible for Japan to make these changes. From
the head of Nippon Steel, which had emerged as one of the worlds
largest steel companies, and from many other CEOs of what were by
then world-class Japanese companies, I heard the ritualized incantation
about how Japan was a humble island nation with no natural
resources still suffering from the devastation of the war. This poor
nation could not possibly make the changes Americans wanted, I was
told over and over.
Akio Morita participated in some of these delegations. He had a
different perspective. He had done what was unthinkable for a Japanese executive at that time: he had moved with his wife Yoshiko and
their children to New York in order to immerse himself in the American environment. He wanted to learn everything he could about American business, consumers, and culture. Today, Japanese executives
sometimes do a tour of duty in the U.S., but too often live in their
own walled-off environments, rarely getting to know Americans well
and sometimes rarely even having to speak English. With Akio, it was
just the opposite. He and Yoshiko plunged themselves into every
aspect of American life from business to politics, media, the arts, and
the education of their kids. This seminal experience made him a genuine expert on American life and was incredibly valuable to him
throughout his career.
I also served on the board of RCA. Akio spent many generous
hours trying to educate me about videotape and video technologies
that were then changing the paradigm of RCAs business. Akio told me
he was contemplating a series of strategic steps for Sony that would
take many of his ideas about globalization of the company to a new
218
akio morita
biographical memoirs
219
220
akio morita
Peter G. Peterson
Chairman
The Blackstone Group