Hojitsu Cars & Gadgets Company
A Global Market Entry Plan
Presented to the Faculty of the
Department of Business Administration of the
University of San Carlos
Cebu City, Philippines
In Partial Fulfilment of the requirement of the
Starley Lyn M. Rabor
Global Market Entry Plan
I. Country Profile
Management Orientations: Polycentric; Ethnocentric
Japan, a country of islands, extends along the eastern or Pacific coast of Asia. The four main islands, running from north to south, are Hokkaido, Honshu (or the mainland), Shikoku, and Kyushu. Okinawa Island is about 380 miles southwest of Kyushu. About 3,000 smaller islands are included in the archipelago. In total land area, Japan is slightly smaller than California. About 73% of the country is mountainous, with a chain running through each of the main islands. Japan's highest mountain is the world-famous Mt. Fuji (12,388 feet). Since so little flat area exists, many hills and mountainsides are cultivated all the way to the summits.
Japan's population, currently just fewer than 127 million, experienced a phenomenal growth rate for much of the 20th century as a result of scientific, industrial, and sociological changes, but birth rates have fallen steadily since the 1970s. In 2005, Japan's population declined for the first time, 2 years earlier than predicted. In 2010, the population growth rate was -1.0%. However, high sanitary and health standards produce a life expectancy exceeding that of the United States. Their country is an urban society with only about 1% of the labor force engaged in agriculture. Many farmers supplement their income with part-time jobs in nearby towns and cities. About 80 million of the urban population is heavily concentrated on the Pacific shore of Honshu and in northern Kyushu. Major population centers include: Metropolitan Tokyo with approximately 8.9 million; Yokohama with 3.6 million; Osaka with 2.6 million; Nagoya with 2.2 million; Sapporo with 1.8 million; Kyoto and Kobe with 1.5 million each; Kawasaki and Fukuoka with 1.4 million each, and Saitama with 1.2 million. Japan faces the same problems that confront urban industrialized societies throughout the world: overcrowded cities, congested roads, air pollution, and juvenile delinquency.
Furthermore, Japan is the world's third-largest economy and a major economic power both in Asia and globally. Japan has diplomatic relations with nearly all independent nations and has been an active member of the United Nations since 1956. Japanese foreign policy has aimed to promote peace and prosperity for the Japanese people by working closely with the West and supporting the United Nations.
Social and cultural aspects of a society form its very nature. As "culture" is the essence of a society, this chapter will concentrate on a discussion of it only. Of all the so called "environmental uncontrollable", culture, or at least the study of it, is one of the most difficult to comprehend, take account of and harness to advantage. This is particularly so when the product or service is "culture bound". Such products and services include those which are generally indigenous by nature and/or of relatively small value and very common. One of the most industrialized nations, home to Hiroshima and Nagasaki, land of the rising sun; Japan has gained many superlatives over the years. The nation which suffered massive destruction during the Second World War, including two nuclear bombs dropped into its densely populated cities, successfully re-invented itself as one of the world's richest and most industrialized nations. According to the CIA fact book, Japan's GDP is $3.867 trillion (2005 est.), which keeps it ahead of United Kingdom, France and Germany. This along with great...
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