Japan—new business opportunities in an established market

Abstract

The recession during the last decade hit Japan's image as an economic powerhouse hard. It added a layer of skepticism to the already existing difficulties in coping with tariff and nontariff entry barriers as well as cultural and business differences. However, even against the background of strong economic transformations in countries such as India and especially China and a strong enthusiasm for dealing with these upcoming economies, it should not be forgotten that Japan is still the world's second-largest economy in terms of gross domestic product. Japan offers an array of business opportunities for foreign investors. As employment and other traditions are under pressure from a young generation more in tune with Western culture and ideas, the Japanese triad market allows for a promising future. This article aims to inform managers who wish to extend their market reach of the tremendous opportunities in the Japanese market. We unveil cultural particulars and challenges for foreign businesses that allow for a refreshed look into the economic miracle of the second half of the twentieth century.

Contemporary trends in Japanese business environment: A review of existing empirical evidence

“…There is a strong agreement of researchers [13,20,32,39,45,55,64,77,101] on the acknowledgement of the perception that typical Japanese management practices, such as lifetime employment and the seniority system, are increasingly being challenged, and there is a trend toward American-style management practices, with far-reaching implications regarding the traditionally tight connections between companies (keiretsu) that are still considered to be too dominant in terms of distribution.…”

“…Haghirian [39] states that Japan has been secluded from foreign markets for many years. This was originally initiated by the third shogun Iemitsu, who -in an attempt to create internal peace and stability -expelled all foreigners and sealed off the country from the rest of the world for about 200 years until 1853.…”