Market entry in Japan barriers, problems and strategies

Abstract

The global strategic importance of the Japanese market can hardly be overemphasized. The presence of Western companies is in sharp contrast to this role. This paper presents the results of an empirical study on entry barriers and entry strategies in the Japanese market. German expatriates in Japan and Japanese managers perceive the overall difficulty of entry and specific barriers as being relatively high. German managers in Germany possess a biased perception of the barriers to entry, they perceive institutional barriers as being more and marketing barriers as being less important. The Japanese market is highly dynamic and competitive. A transfer of experiences from Western markets involves high risk. Endurance and commitment are the most important success factors, short term orientation and lack of flexibility are likely to lead to failure. The marketing performance of German companies is not well geared to the needs of the market. While German companies have strengths in quality, image and innovativeness, their position with regard to service, delivery and distribution is very weak. Market entry in Japan certainly is worth while the devotion of substantial resources and management capacity. But only an attack which is full-hearted and committed is likely to succeed.