In the AI era, Japan's management has crumbled... the end of the 'octopus-like conglomerates' created by lifetime employment

A column by David Ox says Japan’s broad corporate diversification grew out of lifetime employment, seniority pay, internal reinvestment, and low shareholder pressure.

He argues this model can be an advantage in stable manufacturing, but it makes focus and fast pivots harder in AI and EV businesses.

The result is that Japan’s traditional corporate structure may become a structural weakness in rapidly changing software- and technology-driven industries.