Speaker 2
saka pujutuna ne sua was founded in 19 59. Since then, people have described sako head office as the first son, dine as the second son, and
Speaker 1
sua as the third sono sanna. In this set up, the owners the hatori family, are the parents, the head office and the factories are their children. And traditionally, in japan, the further you are down the pecking order, the less power you have within the family, but you also have less responsibility, and therefore more flexibility to take risks. Regardless though you'r still family, your siblings will support you when you need it. And when a child succeeds, it's considered the family success. And that's how the relationship plays out. And it's this dynamic that saco employs in their persistent growth from industry failure to ennovating their way to domestic success. By this point, in the late fifties, anthony cable runs the web site plus nine times all about the japanese watch industry. I
Speaker 2
think they both saw themselves as part of the greater sako group, but i'm sure that the different production teams and design teams, whenever they saw something new from the other team, was deferently pushing forward and saying, ok, we need to do better. Let's make our movements thinner. Let's ad complications or make any additional features that they can ar to try and push forward and have a more dominant point in the market.
Speaker 1
You could call this approach to collaboration constructive competition. The two factories are striving for better watches, not for their own sake, but for the sake of the greater company. That competition has already led to innovations to make them the best in japan. But there's something else happening here, something i doubt the hatori family was even aware of, a different way for the broader company to approach research and development. Some companies have multiple arende labs working on different projects. Starting in the late fifties, saco has two parallel arende labs working on the same thing, building a watch as good or better than the swiss. And while each strives for that goal in their own should they come across a real gam changing innovation, they will share it with the other, because they are, after all, brothers.
Speaker 1
this set up, the hatori family takes an almost parental leadership role. As anthony explains, they set the goals that this competitive relationship will strive towards. Remember, they may be at the top of the game in japan, but if they want to sell their watches to the world, they need to do more than that. If their top competitors for that market share, the swiss are known for anything, it's quality.