Cracking the Japanese Market : Strategies for Success in the New Global Economy
Global business today is played by new rules -- many of which are being written by the Japanese and their remarkably successful companies. Because the Japanese are redefining business as we know it, Western companies expecting to profit from the new global marketplace must first learn to compete and succeed against the Japanese in Japan.James C. Morgan, Chairman of Applied Materials, Inc., the leading supplier of advanced processing equipment to the worldwide semiconductor industry which does about forty percent of its business in Japan, and J. Jeffrey Morgan, who has worked in Tokyo on the "inside" at Mitsui & Co., Japan's oldest trading conglomerate, contend that apathy and ignorance have prevented many Western companies from capitalizing on the enormous opportunities for business in Japan. In this brilliant examination of Japanese markets, companies, and business practices -- with special emphasis on the establishment of Applied Materials Japan -- the Morgans, father and son, assert that success in the world of Japanese business is determined by two factors: technology and relationships. Candidly discussing their own mistakes and failures as well as their triumphs, the authors provide invaluable insights into the specific challenges facing Western companies in establishing a presence in Japan: problems in financing the venture, product design and production, marketing and distribution, and most important, creating long-term relationships or "putting on a Japanese face." The extraordinary success of Applied Materials Japan -- hailed by George Bush on the campaign trail in 1988 as "a model for all America" -- is testimony to the valuable lessons to be learned from this book.The Morgans provide a clearly written, step-by-step framework for reorienting company thinking, revising corporate strategy, and revitalizing any organization for world class competitiveness. Using vivid examples of Western companies that have both succeeded admirably and failed miserably in Japan, Cracking the Japanese Market is a straightforward examination of what it takes to compete successfully there -- and by extension in the world today.
- Electronic book text
- 04 Apr 1991
- SIMON & SCHUSTER
- The Free Press
- United States
Table of contents
ContentsAcknowledgmentsIntroductionThe Growing ChasmWhy America Must Compete in JapanThe Tools to CompetePART IIslands in the Mist1. Sunrise Over the Pacific: The Japanese ChallengeThe Japanese Money MachineInnovators, Not ImitatorsLosing the Building BlocksSymptoms of a Larger Malaise2. The Japanese Way: Origins of a Merchant NationNihonjinronPoor Island MentalityA Group-oriented SocietyThe Quest for WaThe Status HierarchyThe Power of ObligationEducation: The Acid Test3. The Global Farmer: Inside the Japanese MarketA Nation with a MissionThe Command EconomyThe BureaucracyKeiretsu -- The Business EliteSogo ShoshaThe BanksCaptive and Affiliated Suppliers and DistributorsTechnology SpecializationHurdles in the Japanese MarketThe Capitalist Animal4. The Customer Is God: Inside the Japanese CompanyKaisha: The Corporate FamilyConsensus ManagementToward AnshinService as ReligionThe Quality ObsessionThe Loyal SupplierThe Importance of CommitmentProfile of a SalarymanPART IIDoing Business with Nihonsha5. Bushido: Way of the Samurai -- The Japanese as CompetitorsThe Quiet CompetitorsUsing Market and Trend Analysis to Nibble at the EdgesFrom Components to SystemsBurrowing, Emersion, and KnittingDeep-Pocket CommerceJapanese Strategy in ActionThe Future: Kokusaika and Inobeshion6. The Japanese Success Quotient: American Companies in JapanCharacteristics of Winners in JapanRevering the Customer as GodControlling Your Own DestinyResearching and Manufacturing the Right Product for JapanBuilding a World-Class Organization and ManagementEmbracing Cooperation and CompetitionNingen Kankei -- Human RelationsGetting Back to BasicsThe Attack/Counterattack ResponseEmphasizing Similarities/Taking Advantage of DifferencesBelieving that Success in Japan Leads to Global Excellence7. Applied Materials Japan: A Brief History of a Long JourneyInnocents AbroadApplied Materials JapanGrowth and CompetitionA BreakthroughThe Narita Technology CenterThe 'Tough Old Samari'Hard Times in TokyoPART IIISucceeding in Japan8. Kick-Starting the Global OrganizationSeeing Beyond AmericaStudy the Japanese MarketMake a Company-Wide Commitment to JapanDevelop a Japanese Market PhilosophyPresence and PeoplePioneeringPiggybackingPartneringPersistenceOther Considerations in Market Strategy9. Defining the Japan StrategyThe Market MapModes of Entry into JapanThe Distribution AgreementThe Licensing AgreementThe Joint Venture AgreementSelecting a PartnerThe Power of CooperationNegotiating for PartnershipA Word about Mergers and AcquisitionsGlobal Partnership ModelThe Japanese Subsidiary10. Growing the Japanese BusinessPeopleFacilitiesSystemsFinancingBecoming an Insider in Japan11. Becoming a World-Class CompetitorTesting Your I.Q. (International Qualities)The Global VisionThe Global Company ModelLessons from Japan on World-Class CompetitivenessContinuous, Incremental ImprovementEmpowering the WorkforceBuilding Customer LinkagesEffectively Using External ResourcesCost-Effective ProductDesign and Delivery InfrastructureSuperior Information SystemsLong-Term Thinking and Commitment12. Challenge and Opportunity: The Keys to Success in JapanA Realistic View of the Japanese ChallengeThe Keys to Success in JapanShobai wa Akinai -- 'Never Give Up'The Time to Win in Japan Is NowThe Golden Age of Global GrowthAfterword: The America That Can CompeteWhat America Can DoWhat Japan Can DoA Bright Shining FutureAPPENDIX A: Selected Foreign Company Performance in Japan, 1987-88 EstimatesAPPENDIX B: Japanese Corporations with the Most Potential for Growth in the 1990sAPPENDIX C: Economic Comparison between Japan and Other Industrial CountriesAPPENDIX D: Japan Database1. Largest Japanese Banks2. Largest Japanese Insurance Companies and Pension Funds3. Largest Private Japanese Venture Capital Finance Companies4. Research Institutes and Marketing Research Firms in Japan5. U.S. Companies Listed on the Tokyo Stock Exchange6. Selected Organizations7. Recommended Publications8. Comparison of Patent Systems in Japan, the United States, and EuropeAPPENDIX E: Largest Japanese Companies by IndustryAPPENDIX F: Japanese Business Meetings and EtiquetteAPPENDIX G: Glossary of Japanese TermsNotesBibliographyAbout the AuthorsIndex
Andrew S. Grove President and CEO, Intel Corporation The Japanese market is a tough one -- perhaps the toughest in the world. This book embodies the experience of a firm that learned to compete in that market and succeed. William H. Davidow General Partner, Molar, Davidow Ventures Pragmatic. Practical. Insightful. This is the line manager's guide on how to be successful in the Japanese market. The book is worth five years of practical experience. Akio Morita Chairman, Sony Corporation The first book to reveal the genuine opportunities -- along with the challenges -- of doing business in Japan. "Cracking the Japanese Market" is must reading for anyone serious about succeeding in Japan... James C. Abegglen Co-author of "Kaisha, The Japanese Corporation" A sound and readable analysis of the business environment of Japan and the implications for business strategies...A major contribution to dispelling the myths and prejudices in dealing with the realities of Japan's business system. George Stalk Co-author of "Competing Against Time" The Morgans have developed an argument for virtually all modem companies to compete in Japan. They show how with detailed case studies of successful Western companies including their own success story -- Applied Materials. Robert Galvin Chairman of the Executive Committee, Motorola, Inc. "Cracking the Japanese Market" is a telling examination of what it really takes to compete and win against the Japanese in Japan. It is full of practical advice and strategies almost any company can use. George Gilder Author of "Microcosm" A unique, definitive guide not only on "cracking the Japanese market, " but on how to dominate by men who have done it. William F. Miller President and CEO, SRI International This excellent, well-written and practical book presents the Japanese opportunity for U.S. and other industries. The opportunity for participating in the growing Japanese economy is great for those who can meet the challenge described in this book. Tom Peters Author of "Thriving on Chaos" Brilliant! Inspiring! Strategic! Practical! "Cracking the Japanese Market" provides no "instant success secrets." It does provide a singular, thoughtful analysis and case study of how Americans can win in Japan. Opportunities abound for the persistent and wise. Read this book and forget the old excuses about "impossible" Japan: They don't wash.