In order to promote a healthy competitive environment within the Seiko Hattori Company, Genzo Hattori, the second CEO of Seiko, ran the two Seiko factories (Daini and Suwa) under separate independent entity. They were not allowed to exchange information, share research and results, nor any other business and manufacturing information between each other. The arm race led to many positive changes in the company, and shaped the Seiko that we all know today.