He Galapagos syndrome It is a phenomenon that occurs in the technology industry when a company develops products that are only adapted and available in a specific market, ignoring globalization and the global demand they may have.
This syndrome received its name because the isolation of the Galapagos Islands it has given rise to the evolution of unique species not found elsewhere in the world. Similarly, companies suffering from Galapagos Syndrome develop products and technologies that are isolated from the global market and only gain acceptance in their home market.
This syndrome, in the long term, ends up being detrimental to the companies that suffer from it, since it limits their growth and development. But above all, because it results in a lack of adaptation to the needs of the global market. A common example of Galapagos Syndrome is the development of mobile products and applications in Japan that do not include global functionality and therefore simply do not have any kind of acceptance in other markets.
Although the Galapagos syndrome is often exemplified with Japanese companies, it is not limited to that country and does not refer solely to technological aspects. British political scientist Mark Leonard explained how, despite his predictions in the book Why Europe will lead the 21st century, the European Union has ended up growing somewhat isolated and different from other political systems. “It is possible that the European postmodern order has become so advanced and so particular to its environment that it is impossible for others to keep up. The continent has evolved in such a way that it is shielded from the rest of society.”
Toshiba, Sanyo, Sharp and Pioneer
Companies like Toshiba, Sanyo, Sharp and Pioneer, which led the technology market in the 1970s and 1980s, fell behind as companies with more global perspectives entered the competition. Many of them American, but also Korean, Chinese and Taiwanese, were eating up market share with cheaper products but above all with more features, thanks to a key differential.
The reason is that in Japan the position that hardware is the biggest differentiator and the most important aspect in a technological product never changed. But the rest of the world understood that the real evolution is in the software.
That is why many of the Japanese technology companies such as Toshiba, Sanyo, Sharp or Pioneer have been losing relevance over the years. The only exception, halfway, is Sony, which knew how to evolve and adapt to a global market. With some complicated moments like the Betamax.
The case of Toyota, its rejection of electric mobility and software in the car
One of the most recent cases of Galapagos syndrome is Toyota, which is still the largest car manufacturer in the world. The inventors of the methodology just in time for production lines, they revolutionized the automobile industry.
But, when the world began to shift to electric cars, as a solution to the immense pollution problem generated by vehicles, Toyota redoubled efforts on its internal combustion engines. In addition, the Japanese multinational chose a completely different solution for its zero emission vehicles, opting for hydrogen. A technology that will never work for passenger cars, or personal transport cars.
The negative effect from the Galapagos syndrome on Toyota has caused car companies that did not exist 20 years ago, now surpass them in the list of best-selling cars in the world. The Tesla Model Y, a 100% electric crossover SUV, will become the most popular vehicle of 2023.
The Galapagos syndrome of the automotive industry, which rejects technological innovation through software
But Toyota is not the only example when it comes to cars. In fact, the Japanese company shares a growing problem with the rest of the automotive industry: the rejection of technological innovation through software.
Almost the entire auto industry is in its own unique Galapagos syndrome, isolating itself more and more from the deepening changes driven by software and the benefits it could bring to vehicles that, with real integration, could deliver much more value to the car. consumer.
In a way, the auto industry is at the same point as Nokia, who ignored the signs of where mobile devices would evolve. Traditional automakers still fail to take the necessary steps to deep integrate the software into their vehicles, putting themselves at an ever-greater disadvantage to new players like Tesla.
Japanese cell phones and the Galapagos syndrome
Japan began the development of smartphones in 2002, long before most of the technology companies that we have most identified today, such as Apple, Google, Samsung or Xiaomi. At that time, the devices, loaded with hardware features, offered advanced functions that were totally lacking in the rest of the world.
In those times it was already possible to use the mobile as a credit card, pay to access the subway, watch audiovisual content, be used as a method of personal identification, video games, among many other things. The problem is that all these features were totally geared towards the Japanese market and it was extremely difficult to implement in other markets.
In most cases, they were hardware developments that worked solely with the Japanese infrastructure, lacked standards, or simply did not contemplate international expansion. The consequence was that these technologies were either isolated to Japan and could never be exported as it was too expensive, or others were developing standardized alternatives that could be implemented by any company in different markets.