A Critical Review of Market Entry Selection and Expansion Into Japan's Market

ABSTRACT

This article offers a contribution to the Japan market entry model selection. It critically analyzes the various models such as the eclectic, transaction cost analysis, Uppsala, resource-based, interactive network, and bargaining power models, with examples as they relate to foreign firms that had used some of these models to successfully establish their businesses in Japan, as well as some foreign firms that have failed in the market. Data were gathered from the past academic journals, the Japan External Trade Organization (JETRO), newsmagazines, and other sources. Knowledge of corporate Japan and the society played a major role in gathering data for this study. The aim of this article is not to prescribe or offer a solution for the best-available model to use in the market entry into Japan but rather to act as a trigger for a critical checkup on foreign firms planning to internationalize their business and enter the Japanese market. Since there has not been a specific model designed for a Confucian society like Japan, an integrated model combining all the models together was examined using the market entry in Japan of Vodafone, Yahoo, Pfizer, GlaxoSmithKline, and Bayer Yakuhin as examples. Finally, the article offers some suggestions on how to enter and expand business in the Japanese market.     

Some Reasons Why Foreign Retailers Have Difficulties in Succeeding in the Japanese Market

Abstract

The paper explores the Mystique Theory of Japanese Market by analyzing cases of foreign-affiliated retail companies that have entered the Japanese market. As a result of the case studies, three conclusions are drawn. The first identifies three generic hurdles that foreign-affiliated retail companies face in a host country. The second conclusion is that a sufficient condition of success for the foreign-affiliated companies is the need to learn from their failures, to adapt and to change their business models in Japan. The third conclusion is concerned with a potential reason why failed foreign-affiliated companies failed to learn form their experiences in Japan.     

Market entry in japan—Some problems and solutions 1

Japan is recognised as a major competitor in world markets but is less well‐known as an attractive market in its own right. This paper proposes that with the right strategies it is possible to successfully penetrate the difficult Japanese market. Problems and opportunities presented by the market are discussed, and some of the findings of a survey of Japanese and German managers in Japan and German‐based managers are reviewed. The paper covers the survey findings on market characteristics, barriers to entry, information requirements, factors contributing to success and methods of market entry. German and UK sources of information and advice on the Japanese market are given for those interested in pursuing the matter further.     

Values and value related strategies in Japanese corporate culture

In the context of the widening trade gap between Japan and the U.S.A. and the increasing numbers of missions visiting Japan aimed at a better understanding of the Japanese market and Japanese business, topics such as Just in Time and TQC have received the most prominence, along with discussions of Japanese-style management and labor relations. The weakness of most discussions has been their inability to set these into the context of the highly complex Japanese value-system that runs through both business and society. Once understood, it becomes apparent that there is a system of values and value-related strategies at work that have a re-inforcing effect in the directions of cooperation and efficiency. The paper will identify a number of these and indicate their areas of influence. Four are discussed: (1) the formation of corporate philosophy (2) management philosophy (3) corporate work ethic (4) supplier/customer relations.Stuart D. B. Picken is Professor at the International Christian University of Japan since 1972 and Director of the Centre for Japanese Studies at the University of Stirling, Scotland. He is the author of a number of books on Japanese culture and is currently working on the role of traditional values in contemporary Japanese society with special reference to managerial ideology and structure in Japan.     

Integrated consumer shopping decision model: A Japanese online supermarket context

Abstract

Online shopping is not a new marketing channel but has been growing tremendously throughout Japan. The rapid growth of Internet technology has enabled the Japanese to break away from their conservative culture and embark on different shopping experiences by shopping online. With the growing importance of online reviews to promote one’s business, Japanese online supermarkets are looking for ways to increase consumer-generated content. The purpose of this study is to investigate Japanese repeat online consumers and the antecedents that encourage them to review their shopping experiences, including the supermarket website they used and product availability in the online supermarket. It was found that online supermarkets must focus on establishing confidence with their repeat online consumers if they desire to increase the electronic word of mouth (e-WOM) of their online supermarket. Implications are discussed in relation to online supermarkets and repeat consumers’ intentions to review their online shopping experiences.     

Globalizing Business Ethics Research and the Ethical Need to Include the Bottom-of-the-Pyramid Countries: Redefining the Global Triad as Business Systems and Institutions

A majority of the countries in the world are still considered “developing,” with a per capita income of less than U$1,000. Hahn (2008, Journal of Business Ethics 78, 711–721) recently proposed an ambitious business ethics research agenda for integrating the “bottom-of-the-pyramid” countries (Prahalad and Hart, 2002, Strategy and Competition 20, 2–14) through sustainable development and corporate citizenship. Hahn’s work is among the growing field of research in comparative business ethics including the global business ethics index (Michalos, 2008, Journal of Business Ethics 79(1), 9–19; Scholtens and Dam, 2008, Journal of Business Ethics 75(3), 273–284; Tsalikis and Seaton, 2008, Journal of Business Ethics 75(3), 229–238). This article is complementary to Hahn’s work and it advocates an urgent need for business ethics researchers to globally integrate the bottom-of-the-pyramid countries through a fundamental re-definition of the global economic triad, including the United States, Western Europe, and Japan [Ohmae, 1985, Triad Power: The Coming Shape of Global Competition (New York: Free Press)]. The definition that we propose is based on business systems and institutional perspectives that include the bottom-of-the-pyramid countries. We also propose to broaden the research in business ethics to enable comparisons across business systems indifferent income levels.     

New product planning: Lessons from Japanese experience

Japan has derived a reputation as a market that is extremely difficult to enter. However, this belief tends to promote neglect of the study of other factors—important among which is that of the competitive styles of Japanese companies. An issue that is particularly germane is that of product strategy. This article reports on research that was performed among a sample of foreign consumer products' companies in Japan. The article explores the theme that effectiveprodud strategy in Japan requires cultural sensitivity, as well as an ability to cope with the aggressive, technical led approaches of Japanese companies that comprise the competitive set.     

Japan's Quest for M-Commerce Dominance

Abstract

NTT DoCoMo's I-mode system is one of the most successful stories in mobile communication industry. The system has expanded the spectrum for mobile phone users to do more than just phone calls. Although I-mode is primarily used in Japan, its business model and the strategy of doing business may have a profound impact on world's m-commerce in the near future.     

Direct foreign investment in japan as a means of market entry: The case of European firms 1

Japan, one of the world's largest and strongest economies, attracts a tiny level of inward direct investment. This neglect is particularly true of European multinationals. This article examines a sample of European companies which have Japanese manufacturing affiliates, to assess direct investment as a means of access to the Japanese market. It examines the objectives and strategies of entry and evaluates the outcome in terms of successful penetration of the Japanese market. The joint venture route is a preferred means of initial entry and the research allows evaluation of the advantages and disadvantages of this mode of entry to the Japanese market.     

Japanese subcontracting at a crossroads

This paper examines the economic role of small business in Japan in the classic model of subcontracting vis-à-vis the novel model of networking. The Japanese economy can be characterized by an extensive system of subcontracting. There is an intensively elaborated point of focus on this Japanese approach to the technological and managerial aspects of subcontracting outside of Japan. Small and medium sized enterprises and big enterprises, in their endeavour to be effective and efficient, determine the characteristics of this system of industrial production. The characteristics of the subcontracting system in Japan are undergoing structural changes. The requirements concerning an accelerating technological expertise and marketing know-how of subcontracting firms will be adduced as a motive for the rapid industrial restructuring.     

The role of newly emergent wholesalers in the food and drink industry in Japan,c.1880 to 1940: Focusing on the case of Kokubu

Abstract

This article explores the historical development of Japanese wholesalers in the food and drink industry in modern Japan. Despite many criticisms of Japanese wholesalers as being “multi-layered,” “old-fashioned,” and “outmoded,” there were historical reasons for the existence of wholesalers. While the traditional wholesalers remained even after the Meiji Restoration, the new wholesalers emerged by dealing with new products that appeared for the first time in modern Japan. Utilizing the historical conditions of both producers and retailers, the newcomers such as Kokubu boosted their development by innovative activities and gradually superseded the traditional wholesale market, firmly establishing their position as general wholesalers before the Second World War.     

A Study of Correlation Between International Equity Markets Using Exchange-Traded Funds

ABSTRACT

This study utilized weekly closing prices data from three Exchange-Traded Funds representing American, Japanese and European equity markets. The purpose was to examine the joint impact of any two on the third market. Ishares Russell 3000 (IWV), Ishares MSCI Japan (EWJ) and Ishares S&P Europe 350 (IEV) were used to represent the U.S., Japan, the European stock markets, respectively. While the findings indicate that the interdependences among the three markets are significant, there is still room for international portfolio diversification: for example, Japanese investors can realize diversification benefits by investing both in Europe and in the U.S. European and American investors, on the other hand, can diversify portfolios by investing in Japan. The application of multivariate- autoregressive-moving-aver-ages (MARIMA) to the data confirmed the above findings. Finally, the study supported the hypothesis that the international market correlations increase during times of volatility.     

From business to politics: cross-border CEOs and political leadership in Japan and South Korea

ABSTRACT

Whether or not successful CEOs can make themselves competent political leaders has been a concern within the field of management studies. The fact that capitalist democracy depends largely on a close orchestration between the capitalist class and political leaders has also instigated many studies on the exact nature of such bi-partite relationships between the two groups. The number of the cross-border CEOs who expand their horizons into politics has been on the rise in East Asia, as both historical and contemporary examples indicate. A new trend of the cross-border CEOs invites us to examine historical patterns to confirm how widespread the phenomenon has been since the expansion of capitalist democracies. This study offers a limited historical comparison between Japanese and South Korean cross-border CEOs using an illustrative historical case of Aoki Ichigorô, who mass mobilized the farmers movement against the US military base in Japan and a contemporary case of Ahn Cheol-soo, who unsuccessfully ran for the presidency in 2017. We find that CEOs can be successful as political leaders if they can promote networking leadership styles for both business and politics.     

Japan’s trade agreements aren’t “window dressing” after all

ABSTRACT

We analyze eight of the 15 existing Japanese economic partnership agreements (EPAs) from 1997 to 2012. First, we construct bilateral measures of trade barriers for Japan and its partners using input-output and trade data. Next, we conduct panel regressions using those measures and find that when Japan forms an EPA, the tariff-equivalent barrier between the two countries falls approximately 2% to 3%. Contrary to conventional wisdom, this suggests that Japan’s EPAs may not be merely “window dressing” after all. This has implications for larger trade agreements in the works, such as the Regional Comprehensive Economic Partnership (RCEP).     

The Linkage of Trades in Terms of Wholesale Business Formats in Japanese Distribution Systems

Abstract

Japanese distribution and particularly wholesaling are often suggested as having complex channel structures. This can provide difficulties for international retailers who wish to develop direct links with manufacturers and agricultural producers. Wholesalers, in this system, attempt to synchronize their buying and selling functions that gives rise to different types of wholesale business format. Unlike retail formats, wholesale formats seldom have relationships with the final consumer. Results of a survey of wholesalers are presented. The results show that the buying and selling trade relationships are driven by different factors depending on the business format of the wholesaler.     

Expansion of Japanese Retailers Overseas

Abstract

There have been a number of studies of foreign retail entry into Japan but few that consider the moves of Japanese retailers to other Asian countries. Nonetheless expansion into Asia of Japanese retailers, notably since the early 1990s, has been considerable. Many have been attracted by the large size of several national markets. Large Japanese trading houses have played a significant direct and indirect role in the international moves of Japanese retailers. China has become the major place of investment for Japanese retailers with 21 retail companies established by Japanese firms. The history of the internationalisation of Japanese retailing shows three phases of development. A first phase is characterised by department stores, a second phase is a slowing of activity in the late 1990s and a third phase of rapid expansion is presently evident. The key to the current phase is the establishment and strength of non-retail supply firms in the same East Asian region into which retailers wish to expand.     

Lessons from Japan: American and Japanese strategies and goals in the 1990s

This article recounts various Japanese business approaches touted in the 1980s as “Lessons from Japan” for U.S. managers. The logical expectation, given the sheer bulk of the literature, was that U.S. managers would become more “Japanese” in their business strategies and goals while the Japanese would have become more entrenched in their approaches. Questionnaire responses from 95 Japanese and 70 American firms suggest, however, that U.S. managers tend to make few shifts from the strategies and goals they emphasized in the 1980s. Meanwhile Japanese managers report that they expect to move toward more “American” business practices. © 1993 John Wiley & Sons, Inc.     

The Japanese corporate network transferred to North America: Implications for North American firms

A significant difference between Japanese and American corporate environments is the existence of extensive networks of intercorporate agreements among firms in Japan. Networks in Japan are the dominant factor in determining how firms transact with other organizations. Given that Japanese networks are taking root in the American business environment, what does this mean for American firms competing and cooperating with Japanese firms? Drawing on a recent study of North American-Japanese joint ventures, this article examines the Japanese network and considers the implications for outsider firms gaining temporary, and perhaps even permanent access to the network through the formation of alliances and joint ventures with Japanese firms. © 1995 John Wiley & Sons, Inc.     

The Power of e-Learning in International Business Education

Abstract

The advent of the knowledge society is imposing changes in the education process. One important development in the knowledge society is e-learningwhere teachers and students meet in virtuallearning spaces. A case study of the experience with e-learning, compared with the traditional lecture-based learningapproach to pedagogy at the Copenhagen Business School, suggests that this problem-oriented and dialogue-based approach may hold substantial potential in international business education. This innovative approach is described in detail.     

Marketing in an Electronic Age. Buzzell,Robert D. (Ed.). Boston,MA: Harvard Business School Press, 1985. 404 Pp. $32.50

Abstract

American and Japanese print ads were content analyzed to examine how advertising expression and content differed in the two cultures. The degree of emotional appeals, informativeness, and comparativeness of advertising were the dimensions studied. As hypothesized, Japanese ads were evaluated as more emotional and less comparative than American ads. In contrast to a priori notions, Japanese ads were found to contain at least as many information cues as American ads.