JAPAN
STRATEGY FORMULATION & IMPLEMENTATION
 
 
 
 
 

S.W.O.T. Analysis For Doing Business In Japan:

STRENGTHS

a.) Japanese society (Zen): selflessness, continuous improvement - the Japanese always strive for perfection and they try to show improvement in the areas where they are lacking.
b.) Technology - Japan is the technology capital of the world. They have all the new innovations before anyone else does. Now they just need to figure out how to properly market these ideas and distribute them globally.
c.) Economy - right now the economy in Japan is very strong and the Japanese need to use this to their advantage.

WEAKNESSES

a.) Non-verbal communication practices - in the Japanese culture non-verbal communication is practiced on a regular basis. When companies start trying to negotiate and practice business in other countries and other cultures, communication tends to be misinterpreted.
b.) Quickness - the Japanese culture tends to be relaxed and based on relationship building. Other cultures are very quick with everything including communication. Many companies fear doing business with Japanese companies because sometimes it creates more work than is necessary with other countries and cultures.
c.) Research and Development Capability
d.) Middle Management concept and need for open communication and learning (Groupism and Authoritarianism in the past have been strengths but is beginning to change because of globalization)
e.) Education - many Japanese go to other countries for extended education. Many of these individuals tend to stay in the country in which they study for different opportunities that Japan cannot offer them.

OPPORTUNITIES

a.) Environmental Issues (recycling, energy saving, etc.)
b.) World's Second Largest National Market 
c.) Increase of Women in Business - the Japanese are starting to see an increase in women in management positions. This could create an opportunity for new ideas and more creative ways for the businesses to be organized.
d.) Foreign Influences becoming more welcome - with an increase in education outside of the country, some individuals return to Japan with new insights to their own culture.

THREATS

a.) Globalization - since Japan is an island they tend to be far away from everyone else. This has created problems with many corporations trying to go global.
b.) Small proportion of foreign investment - the Japanese feel they have great products within the country and do not always support foreign investment opportunities. This practice has deterred some companies from trying to enter the Japanese market or from trying to create joint ventures with Japanese companies.


 

SOURCES
http://www.fortune.com
http://www.businessweek.com
http://www.executiveplanet.com
Deresky, Helen. International Management. Prentice-Hall, New Jersey, 2000.
Miyakoda, Tooru. Interview. February 2002.