Market Entry in Japan: Theory and Management in a Turbulent Era Book

List of Tables vii

List of Abbreviations and Acronyms viii

About the Authors x

1 Introduction 1

1.1 Globalization of the markets 1

1.2 Japan - the largest economy in Asia 2

1.3 Specialists - a key role in market success 3

1.4 Innovative technologies 4

1.5 Economic boom and bust 5

1.6 Return to economic growth 6

1.7 Upturn - not an economic flash in the pan 9

1.8 Toyota - a model for success and the knowledge of a special corporate philosophy 9

1.9 Consumer confidence improves 12

1.10 The historical dimension 12

1.11 The unstoppable advance of Japanese companies - learning from strength 14

1.12 The champions league of the international business world 15

1.13 What this book offers 15

2 Japan - An Island Kingdom with Many Different Facets 17

2.1 Natural and geographical features 17

2.2 The forces of nature 18

2.3 The annual cycle of the seasons 20

2.4 A short history of Japan 23

3 Society in the 21st Century 27

3.1 The imperial dynasty 27

3.2 The constitution 28

3.3 Administration 29

3.4 Social structure 29

4 Japanese Management 37

4.1 The early years 39

4.2 Progress 41

5 The Japanese Market: The Dynamics, the Potential, the Perspectives 74

5.1 The challenge to businesses 74

5.2 Governmental reform policies 75

5.3 Market transparency and deregulation 76

5.4 The end of economic stagnation 78

5.5 Important markets 79

5.6 Keiretsu structures and intensity of competition 95

5.7 Barriers to trade and pre-defined distribution systems 96

5.8 Industries of the future 98

5.9 Positive overall picture 100

6 Market Entry and Market Development Strategies - Opportunities for Foreign Companies in Japan 101

6.1 Initialpreparations for entering the market 102

6.2 Licensing 104

6.3 Low risk: Indirect exports 107

6.4 Direct export 108

6.5 Franchising 109

6.6 The sales office 110

6.7 Setting up a joint venture 111

6.8 Building up strategic alliances 114

6.9 The subsidiary 115

6.10 Mergers and acquisitions 117

7 From Theory to Practice: The World of Business in Japan 118

7.1 Planning a business trip 118

7.2 Duties in Japan 123

7.3 Reaching decisions 127

7.4 Maintaining the business relationship 128

Bibliography 131

Index 156