Have You Done Enough Research then Developed Your Strategy for Successful Japan/Global Business? – Japanese Businesses & MNCs Operating in Japan

As in the previous post, many business professionals think globally only when they realized they cannot grow their business only in their own, local market (i.e. of their own country). So they tend to “rush” in going global.

Perhaps that is why many of them think “let’s start going global from this country” without much thought or strategy supported by research and analysis.

Japan is number 3 market in size and matured for most industries so it is an attractive market. So many business professionals outside Japan are interested in making Japan market entry. This is probably such people contact me via LinkedIn saying they want to expand their business in Japan. But, I must say majority are so easy going.

It is basically the same for many Japanese business professionals. When they explain to me their aspiration in going global and starting with this country or this approach, I would ask them why most of the time they cannot explain clearly, in convincing manner. It is because of insufficient or lack of research, insight and strategy.

With language barrier and lack of knowhow or connections, doing research, gaining insight and developing strategy is a huge challenge. It does not mean you can get away with it. And, there are some ways you can overcome this challenge, even with limited resources.

This is one of the topics I have covered in my two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

When Should You Start Thinking Globally for Successful Global Business – Japanese Businesses & MNCs Operating in Japan

You may well start your business locally in your country even if you have a vision of going global in the future. When do you start taking global market into consideration? After your local business starts to mature?

It is natural that you start your business where you are familiar with thus that is what most people do but that is no good.

There are so many things that cannot be “changed/tailored” to make your business change/evolve to something global once you start with something very local.

Brand (including brand name) is just an example. This is why current global companies like Toyota have changed their CI brand from their original one (e.g. from Japanese to English).

Such small change worked for them, but for others they simply had to completely change everything, meaning huge investment/cost and re-building the brand again.

Thinking globally from the early stage is one of the topics I have covered in my two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

You Cannot Underestimate Manners & Customs, Culture for Successful Global Business – Japanese Businesses vs MNCs Operating in Japan

As in previous posts, regulations/rules and language, knowledge of market and customers of foreign market, and operations are key factors in going global yet difficult to overcome. 

There is one more thing you cannot simply ignore – business manners & customs, and culture.

I actually was asked to do an hour consulting over phone of an American business professional about this last year. They had set up a joint venture with a Japanese local company and started their Japan business but were having problems and he concluded it was because of corporate culture.

He seemed to have tried to understand this issue by reading some books but decided to have my consultation. From our conversation he seemed to have been spot on and told me he would immediately take actions based on my consultation.

The Japanese companies going global also have the very same issue.

This is one of the topics I have covered in my two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

Maybe the Biggest Hurdle for Successful Global Business – Japanese Businesses vs MNCs Operating in Japan

As in previous posts, regulations/rules and language, knowledge of market and customers of foreign market are often named as key factors in going global yet difficult to overcome. 

In reality, selling, distributing and collecting money in doing business (something more operational) especially in going global is a huge obstacle. This is vital in business yet sometimes underestimated in planning phase.

You cannot say your business is successful unless you managed to sell, distribute/provide to your customers and they pay you, i.e. you receive money from them, not account receivable).

In making Japan market entry and doing business in Japan, this may not be as critical as some other countries/regions because Japanese people tend to keep their promise once made. Perhaps Japanese companies and business professionals going global find this more difficult.

But still, when you are not so familiar with the Japanese market, developing the total operational process and making sure you manage the process and collect money from your customers in a way that your cash flow is in good condition is not easy, especially when you cannot set up an entity in Japan from the start etc.

A solution is setting up a Joint Venture with a Japanese company but this is still too much a burden for many small & mid-sized businesses. In that case, there are other possible solutions, too.

This is one of the topics I have covered in my two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

Overcoming Lack of Market and Customer Knowledge in Going Global – Japanese Businesses vs MNCs Operating in Japan

Besides regulations/rules and language, knowledge of market and customers of foreign market is key in going global.  This cannot be acquired and truly utilized in product/service development and marketing overnight.  And, without this, you cannot decide which product/service to launch in which geographical market, and how.

In making Japan market entry and doing business in Japan, business professional outside Japan do say such knowledge is something they lack.  To me, many LinkedIn discussions of groups about Japan are about seeking some help to overcome this issue.

Similarly, Japanese companies and business professionals also need help in acquiring and leveraging knowledge of the overseas market and customers when they expand their business outside Japan.

Even if such knowledge cannot be acquired overnight and even if you may not have time and system to develop employee/talent who truly has such knowledge.

One solution is hiring appropriate talent, but finding, hiring and developing such full time employee may well be too much a burden for you.

It does not mean there is no way to overcome this issue.  You can overcome this by leveraging appropriate resources around the globe.

This is one of the topics I have covered in my two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

You Cannot Underestimate Japanese Language in Business in Japan – Japanese Businesses vs MNCs Operating in Japan

Though I would not say it is the first priority as in my previous post, for MNCs operating in Japan, language is usually named as the first obstacle for their market entry into the Japanese market and being successful.  And it is true you cannot underestimate language issue in doing business in Japan.

Only very limited Japanese people are fluent in English.  That is even those working in large MNCs operating in Japan.  That is why translating/localizing documents and tools into Japanese is “must” in all businesses and occasions.  Whenever you are to have a meeting or event involving non-Japanese speaker(s), interpretation is the issue you need to think about / solve.

Japanese companies and business professionals also say language (English) is the first challenge they face in going global.  Similarly, language is not the first priority but it is an obstacle they need to overcome.

Language is a tool of communication in doing business.  Without it, no way you can be successful in your business.

But, it does not mean you always need to be fluent in Japanese to succeed in business in Japan.

This is one of the topics I have covered in my two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

This article was originally posted on Megumi Oyanagi’s Blog About Japan

Obstacles in Going Global is Not Only Language – Japanese Businesses vs MNCs Operating in Japan

For MNCs operating in Japan, language is usually named as the first obstacle for their market entry into the Japanese market and being successful.

Also, Japanese companies and business professionals also say language (English) is the first challenge they face in going global.

Well, to me, it is yes but no.

Regulations and rules such as tariff and laws, whether applicable for all industries or of a specific industry is the primary barrier.

They shape the external business environment and the game rule each player play the game / do business.

They determine whether you can do a certain business in a specific country or region.

What is tricky is that some rules are not necessarily clear / written down and thus difficult for foreign investments to fully understand and comply.

For overview and some details with a few examples, please kindly refer to two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例