4.2 SWOT Analysis
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What are the implications for US businesses tha t wish to conduct business in Japan?
4.2 SWOT Analysis
Japan is not an entirely easy company for a multinational to enter and conduct business because of the country's worldwide recognized xenophobia wherein Japan is one of the most homogeneous populations in the world. This has been the case for centuries as Japan still remains one of the last countries to be encroached upon by the West in the 1800s. Therefore, the reason that this is important is because the country is not as conducive to foreigners or foreign businesses as other countries within the Asian Pacific region. This has caused concern and friction among some of the countries most ardent trading partners such as the United States and Europe as the country has been accused of engaging in non-tariff barriers against foreign imports such as the country's governmental system that essentially manages many of the country's largest companies and is able to rely upon the use of governmental policies and procedures that help companies by discriminating against foreign imports. In addition, the complexity associated with the distribution system within the country is cited as another non-tariff barrier as well as the resistance that occurs as a result of the homogeneous culture that shuns outsiders.
The reality is that many of the powerhouse companies within the country were actually created by the government, which results in direct participation by the government in these businesses wherein the use of government ministries and other bureaucratic methods are utilized to favor Japanese businesses over multinationals. This results in an unfamiliar situation for Western companies that are not used to collaboration between the government and private businesses as the appearance that is given in Japan is that the Japanese government represents a large business conglomerate that is headed by the Ministry of International Trade.
There are strengths associated with the country, and these can be very lucrative for a company that accurately enters the country and is able to successfully avoid any cultural misconceptions and engage the populace. The country is the third largest economy in the entire world, only China and the U.S. are larger. It has the second largest technological market wherein its computer and telecommunications market is second only to the United States. It is ranked by the World Bank as being the 27th easiest country to conduct business within in the entire world, and the citizens in the country have high wages and disposable income to spend. These consumers like high quality items and services that make it possible for brands to sell high dollar merchandise to citizens who are capable of ...
The implications for US businesses that wish to conduct business in Japan are determined. A SWOT analysis is analyzed.