when Japan took steps to lower tariff and non-tariff barriers in resr to Western criticism, it became clear that there were other obstacles to We exports: networks of Japanese firms buying frop each other; subtle administj
guidance that favoured local firms; a c6mplex distributiori system; closed-door bic for construction contracts; bureaucratic and regulatory obstacles, espcial1y in technology sectors.
The Japanese government has gradually removed these obstructions. example the Japanese telecommunications company NIT has been persuade purchase part of its equipment abroad. Japanese science institutions have acquire supercomputers, and the Japanese electronics industry is buying a sizeable numb US semiconductors. Even US software suppliers have established viable operatioi Japan in the 1990s. Also, Japan can now claim to be the only country which offi< exhorts its citizens to buy imported goods, which provides special loans for imj and which has set up a government agency (JETRO) specifically to help foi exporters find a Japanese market for their goods.
To succeed in Japan, however, requires more than just exporting: foreign I must make substantial direct investments over a long period. In Japan, as a relationships matter more than a good price: transactions are carried out, aft relationship has been established, and price is only one ingredient in a mi expectations and interactions. This, of course, is also true in Europe, and, to a h degree, in the USA. But, by and large, in the West pricing has been and still is thej important ingredient in the conclusion of a business deal. In Japan, on the other h this rarely holds true, particularly when selling to industrial customers. Saying that the Japanese market is open, Japanese society remains closed, is still a description.
Keiretsu, or enterprise groups, are the best-known example of industrial cliq Understanding the links between the various members of these groups and the they grant preferential treatment to each other is vital for calculating an indivi foreign firm's chances of success in a given market. But close relationships do guarantee the conclusion of a contract, even within the keiretsu. Business links becoming looser, and selling to and buying from competitors is becoming n conunon, even on an OEM basis. But Japanese buyers will continue to define quality of relationships with existing suppliers, customers and other partners competitive advantage that matters more than an outsider's ability to offer the r product at the right price.
Japan : Investment article from Business Management Catagory Japan
Japan Investment article from Investment Business Management.Free learning from data about Japan Investment Business Management Business Management,online business management,business management classes,online business management degrees