Japan Entry Mode Analysis

The national level concerns considerations of entry modes, and how cultural issues influence strategy formation and the organization of business units in Japan. Ignoring the heterogeneity across cultures and markets can be extremely costly business, and simply executing an entry or marketing strategies based on success story in other markets does not work (Uzama, 2009). Strategies need to fit into the market. Thus, carefully selecting appropriate market entry mode in global market is one of the most crucial strategies in internationalization of business. In this section, we analyze the market conditions that make Japan different from other western markets, which consequently influence the entry mode selection of foreign investments. We also

The Japanese word for customer O-kyaku-sama itself indicates a hierarchical relationship between buyer and seller in which the customer holds all the power (Schütte & Ciarlante, 1998). The word Kyaku means guest or customer, and the prefix O and the suffix sama add honorific expressions showing politeness and respect to a potential consumer (Haghirian, 2010). According to March, “…Japanese buyers sometimes behave like arrogant and spoilt children as they revel in the superior status assigned to them by society” (March, 1990, p. 12). In reality, the business treat customer as God and they behave as if they are Gods. As a result, the expected level of customer service is exceptionally high in Japan. And personalized customer services are both appreciated and expected by Japanese consumers. It is common that even a fast-food chain manager deliver hot fries or chicken in person to a customer’s home with apologies if customer calls the store to complain that they were missing fries or chicken in their bag (Uzama, 2009). Likewise, one of Flying Tiger store managers has also delivered a basket filled with chocolate and wine with apologies to a customer who called and complained for a broken good bought for 20 Danish kroner (Himmelstrup, personal communication,

According to him, “[Japanese consumers] expect you to be thinking about their needs, and their problems, rather than about your products or your profit or convenience” (March, 1990, p. 12). What they value is to buy a product with no defects delivered in perfect condition, and a flexible, responsive customer service.

Quality Control

Flying Tiger Copenhagen the perception to the quality has been different from that of Japanese market standard. Of course they care about the quality, but it is not at the same level as the Japanese partners do. Sophie Himmelstrup tells us an example:

If our partner finds a ballpoint pen broken out of a box with one thousand pens, they resist selling all of pens in the box. And they contact us immediately. When they do that, we have to contact the supplier to hear if there is anything wrong with the quality of the product. Even though it only costs 10 Danish kroner (personal communication, 12.05.2016).

It is not understandable for the Danish HQ and seems too overreacted. Another example is both related to quality and belief, she experienced