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Japanese Entry

Japanese Companies' Mode of Entry in Developing Countries

Research papers on Japanese Companies' Mode of Entry in Developing Countries will focus on any aspect of international business. Japan is an excellent topic for examining a countries' entry into another developing country. Have us custom write your paper today.

This is a research paper topic suggestion on global expansion of Japanese companies in developing countries. Included in the project is Growth Imperative and Globalization of competitors and emerging markets.

Japanese companies began to expand significantly in the international marketplace in the late 1980s in response to domestic deflationary pressure that reduced the growth rate in the domestic market. At this time, the Japanese economy had shifted from the export-driven approach that had supported post-war growth to greater reliance on the domestic market. As a result, the initial approach of Japanese firms to the international market was to again emphasize exports to industrialized nations as a means of supporting growth. Over the last decade, however, the process of globalization has accelerated, creating a new set of imperatives for the international expansion process among Japanese firms. At the same time, there has been rapid economic growth in developing nations, with these markets representing more attractive long-term opportunities than the mature markets of the industrialized nations for Japanese firms. As a result, Japanese firms are emphasizing market entry in developing nations as a means of positioning themselves to take advantage of future growth in these markets.

Structure of a Business Research Paper on Immerging Markets

Imperatives driving global expansion of Japanese companies around the world focus on the following:

  • Growth Imperative
  • Efficiency Imperative
  • Knowledge Imperative
  • Globalization of customers Imperative
  • Globalization of competitors Imperative

Focus on ONLY two countries at maximum - If there are interesting differences between investments in India and China then pursue two countries otherwise just focus on one of them.

Topics to Cover Regarding Japanese Entry Into Global Markets

  1. Developing countries as emerging markets (China / India)
    1. Market sizes
    2. Customers
    3. Strategic importance and ability to exploit developing markets
  2. Mode of entry
    1. Alliance based mode of entry
    2. Comparison / Advantages / Disadvantages
  3. Management characteristics
    1. Transplanting the DNA
    2. Workforce management

The growth imperative for Japanese firms required the expansion into markets outside of Japan. Until recently, the Japanese economy has experienced relatively slow rates of GDP growth with the domestic market maturing in many sectors. To achieve an adequate rate of growth, Japanese firms have adopted a global strategy, with particular emphasis on developing nations because of their rapid rate of economic growth.

The efficiency imperative facing Japanese firms involved expansion into global markets as a means of reducing costs through more effective resource allocation and the development of economies of scale. In developing nations, the cost of labor is substantially lower than in Japan and can be accessed through foreign direct investment (FDI) shifts production to the nation with the lowest level of cost. In addition, FDI often places production closer to resource inputs and key markets.

The expansion of Japanese firms into the global environment was also prompted by a knowledge imperative. The revolution in information technology supports the general globalization process by permitted instantaneous communications between a parent firm headquartered in Japan and its international subsidiaries regardless of their global location. At the same time, the information revolution created an environment in which competition is based on knowledge resources and requires that firms continually adjust their available resources in accordance with changes in the external environment. Global expansion provides Japanese firms with the opportunity to acquire a wider variety of human talent that can provide firms with greater knowledge resources and hasten the adoption of new technologies.

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