International Marketing-Japan

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Module: International Marketing

Marketing in International Markets :
Country Snapshot : Japan

Japan : Country of varied hues

Japan- Bird’s eye view
Formation
Capital
Population
Ethnic Groups

: 660 BC
: Tokyo
: 128 Million (2010) (10th largest)
: Japanese (98.5%), Korean (0.5%),
Chinese (0.4%), Others (0.6%)
Government
: Unitary parliamentary democracy (Diet)
& Constitutional democracy (Emperor)
GDP (Nominal)
: USD 5.4558 Trillion (3rd)
Per capita income : USD 42,820 (16th )
Exports
: USD 790 Bn (4th)
Imports
: USD 726 Bn (4th)
Life expectancy
: 82.6 yrs (1st)

Japan- Land of the Rising Sun
Geography :
Lies in Far East along Asia Pacific
Coast
Comprises of 6852 islands
About 73 % forested, mountainous,
unsuitable for agriculture, industry or
residential use
Population densely populated along
coastal regions
Plagued by Volcanoes (108 active),
Earthquakes, Tsunami, Typhoons
Predominantly Temperate climate,
heavy winters in north, rains in south

Japan- History
(600BC -1100 AD) : Ancient history dominated
by Nara period with high Buddhist influence
(1200 – 1860 AD) : Feudal era in12th century –
dominance of Samurai &other warrior clans
1854 : Comdr. Mathew Perry of US forced
opening of Japan
1890-1945 : Japan invaded, annexed other
countries & fought many wars - Sion-Japanese
war, Russo-Japanese war, World War –I & II
1941 : Pearl Harbour bombed by Japan
1945 : Hiroshima Nagasaki atomic bombing
by US & surrender by Japan
1947 : Adoption of new constitution

Japan- Political system
Follows constitutional monarchy & parliamentary democracy
Emperor Akhihito – ceremonial figurehead
Diet- bicameral parliament- Houses of representatives &
councilors
Prime Minister Yoshihiko Noda- head of the state with council of
of ministers
Civil & criminal law - administered by 4 tiers of courts
Defense – Japan maintains one of the largest military
budgets but restricted by International treaty from right to declare war or use military force
Japan consists of 47 prefectures, administered by elected
governor, legislature, bureaucracy

Economy of Japan
Follows market economy since the 1860s during Meiji period
Many of today’s enterprises founded during Meiji period
Post war economic miracle during 1960s to 1980s , economic
growth avgd 7.5 % in the 60s & 70s and 3.2 % in 80s & 90s
Growth slowed during late 90s, 2000s due to Asset price
bubble.
Current GDP growth is only 0.3% (Q2, 2011) due to
earthquake, tsunami & recession
Current Gross Sovereign debt – USD 10.55 Tn (225% of GDP)
In 2011, Japan is the 3rd largest in terms of Nominal GDP (USD 5.458 Tn) & 4th largest in terms of PPP (USD 4.309 Tn)
Service sector constitutes 76% of GDP, Mfg. industry -22.8%, Agriculture -1.5%

Economy of Japan
Major Mfg industries – Vehicles,
industrial, transportation eqmnt,
electronics, steel, machine tools,
processed foods, nonferrous
metals, chemicals
Only 12% of Japan’s land fertile, so
agriculture
agriculture self-sufficiency-50%
Japan ranks 5th in tonnage of fish
caught, supply 15% of world’s fish
Ranks 12th out of 178 countries in
Ease of doing business index
Unemployment rate is around 4%
Lifetime employment & seniority
based advancement are common

Contd..

Trade equations
Exports - $ 790 Bn
(4th largest)

Imports
Imports -$ 726 Bn
(4th)

Trade equations

Demographics
Population of 128 Million
Ethnic Groups : Japanese (98.5%), Korean
(0.5%),
Chinese (0.4%), Others (0.6%)
Life expectancy : 82.6 yrs, longest in the
world
In 2009, about 22.7 % of population was
over 65. By 2035, exp to grow to 40 %
Creates social issues, esp decline in
workforce population and increase in the
cost of social security benefits
public pension plan.

Geert Hofstede - Cultural Dimensions
Power Distance (PDI) : Extent to which less powerful members within a country expect & accept that power is distributed unequally. Individualism (IDV) :...
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