This implies that Japanese companies have been succeeding in lowering the break-even point by restructuring and adapting their business structure so that they can secure profits even when sales are sluggish. C.  Search for New Business Models  Japan's proximity to rapidly growing East Asia has an interesting implication from the viewpoint of the corporate response to changes in the global environment.
On one hand, such proximity exerts a strong impact on competition and prices through the inflow of less expensive imports. On the other hand, it strengthens the competitiveness of domestic industries rather quickly.