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but the country remains a major economic power. Japan recovered to become an economic power and an ally of the US. It occupied Korea. elected politicians hold actual decision-making power. In 193132 Japan occupied Manchuria. • Following three decades of unprecedented growth. devastated the northeast part of Honshu island. and an accompanying tsunami. the Tokugawa Shogunate (a militaryled. .triggering America's entry into World War II . and southern Sakhalin Island. After its defeat in World War II. • • Japan attacked US forces in 1941 . Formosa (Taiwan). Japan opened its ports after signing the Treaty of Kanagawa with the US in 1854 and began to intensively modernize and industrialize. killing thousands and damaging several nuclear power plants. • In March 2011. For more than two centuries this policy enabled Japan to enjoy a flowering of its indigenous culture. and severely strained its capacity to deal with the humanitarian disaster. Japan's strongest-ever earthquake. Japan became a regional power that was able to defeat the forces of both China and Russia. While the emperor retains his throne as a symbol of national unity. dynastic government) ushered in a long period of relative political stability and isolation from foreign influence. Japan's economy experienced a major slowdown starting in the 1990s.Brief History: • In 1603. after decades of civil warfare. and in 1937 it launched a full-scale invasion of China. • • During the late 19th and early 20th centuries.and soon occupied much of East and Southeast Asia. The catastrophe hobbled the country's economy and its energy infrastructure.

uncodified or blended constitution. Prime Minister Yukio Hatoyama who assumed office on 16 September 2009 after leading the Democratic Party to victory in General Elections had to step down on 4 June 2010. Freedom of Press/Media. There are thousands of rules and regulations overseen by the bureaucracy that businesses. whether it be a written.PEST Analysis: Political Analysis: • Government Type: A parliamentary government with a constitutional monarchy. Japan witnessed the installation of the fifth Japanese Prime Minister in four years. This form of government differs from absolute monarchy in which an absolute monarch serves as the sole source of political power in the state and is not legally bound by any constitution. More than half of the national newspaper market share is controlled by "the big three": the Yomiuri Shimbun. The major reason was his inability to honor his election pledge on the relocation of the US Marine Aviation Base at Futema on Okinawa Island. Kraay. Japan has a vigorous and free media and boasts the second highest daily newspaper circulation per capita in the world (after Norway).94 for the factor "Political Stability and Absence of Violence/Terrorism" in the Kaufmann. and Corruption: Press freedom is constitutionally guaranteed and generally respected in practice. Transparency International (TI) has published an annual Corruption Perceptions Index (CPI) ordering the countries of the • • • • • . the Asahi Shimbun. Rule of Law. The governance estimates are normally distributed with a mean of zero. compiled for the World Bank. and a higher score signifies a less violent and politically more stable society. and the Mainichi Shimbun. Bureaucracy. Japan is arguably controlled more by the country's strong central bureaucracy than it is by its elected officials. ) Government Stability: Japan receives a score of +0. There are over one million civil servants in the Japanese government and the economic ministries (administration staff). Since 1995. government agencies and ordinary citizens have to abide by. Many national dailies have circulations topping one million and often produce afternoon and evening editions as well. (Constitutional monarchy (or limited monarchy) is a form of government in which a monarch acts as head of state within the parameters of a constitution. The independent court system has particularly emerged in recent years as a bulwark against political pressure on journalists. Companies need licenses and people need to pass tests for doing all kinds of things. and Masatruzzi's Governance Indicators for the year 2008.

All judges are granted complete independence in decision making. The Supreme Court has the rule making power and is considered court of last resort. • Legislation: The legislative power is vested in the Diet (KOKKAI). Japan is ranked 17th on the list out of 180. that determines the constitutionality of any law. If a bill has passed the House of Representatives but is defeated in the House of Councillors. The Supreme Court (Saiko Saibansho) and a number of inferior courts are vested with the judicial power. A higher score means less (perceived) corruption.} . As a general rule. which consists of two houses. the House of Councillors (Sangiin) and the House of Representatives (Shugiin). There are three major labour laws. namely: • • • (1) The Labour Standards Law (LSL) {The LSL regulates firstly working conditions and secondly the workplace safety and hygiene.} (2) The Trade Union Law (TUL) {The TUL guarantees the worker's right to organize and to bargain collectively} (3)The Labour Relations Adjustment Law (LRAL) {labour management adjustments and means of dispute settlement are specified in the LRAL. The latter is appointed by the Emperor who must follow the Cabinet's designation. it can become law if passed a second time in the House of Representives with two-thirds of all members present. which is headed by the Prime Minister. It is made up of 14 judges who are designated by the Cabinet and a Chief Judge. The organization defines corruption as "the abuse of entrusted power for private gain". a bill becomes a law merely by passing both houses. The executive power is made up of the according to "the degree to which corruption is perceived to exist among public officials and politicians”. Each of the inferior courts are under the control of the Supreme Court which nominates as well the candidates for the post of judge. order and regulation.

a 5% average in the 1970s. and a 4% average in the 1980s. • The Japanese financial sector was not heavily exposed to subprime mortgages or their derivative instruments and weathered the initial effect of the recent global credit crunch. Japan imports about 60% of its food on a caloric basis. at levels that make these foods unfit for consumption and create uncertainty regarding possible longterm contamination of the area. milk. displacing and leaving homeless more than 320. averaging just 1. • A 9. and certain vegetables.5 miles of the plant but later expanded to 19 miles. • Measured on purchasing power parity (PPP) basis that adjusts for price differences. Japan in 2010 stood as the third-largest economy in the world after China.Economic Analysis: Brief Economic Highlights: • Japan's industrial sector is heavily dependent on imported raw materials and fuels. reliance on exports to drive growth. Usually self sufficient in rice. and leaving a million households without running water. fish. • Japan's huge government debt. severely damaging several nuclear power plants. overall real economic growth had been spectacular . largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt. killing thousands. • For three decades. capital. • Government stimulus spending helped the economy recover in late 2009 and 2010. persistent deflation. A tiny agricultural sector is highly subsidized and protected. Prime Minister KAN's government has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through free-trade agreements. and an aging and shrinking population are major long-term challenges for the economy.000 people.7%. beef. but a sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession.0-magnitude earthquake and an ensuing tsunami devastated the northeast coast of Honshu Island on 11 March 2011. Radioactive iodine-131 has been found as far as 100 miles from the plant in samples of water. • Radiation leaks at the Fukushima Daiichai nuclear power plant prompted mass evacuations and the declaration of a no-fly zone initially for people and planes within 12. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. which surpassed Japan in 2001. which exceeds 200% of GDP.a 10% average in the 1960s. but debate continues on restructuring the economy and funding new stimulus programs in the face of a tight fiscal situation. with crop yields among the highest in the world. Growth slowed markedly in the 1990s. washing away buildings and infrastructure as much as 6 miles inland. . and labor.

sugar beets. fruit. eggs.) Agriculture: 3.) $34. GDP: (Purchasing Power Parity) $4. dairy products.9% (2010 est.) $33. poultry. chemicals.) $4. pork.8% . vegetables. textiles.) -1.200 (2010 est.range from $235 billion to $310 billion.9% (rice. In order to stabilize financial markets and retard appreciation of the yen.338 trillion (2010 est.391 trillion (Real Growth Rate) 3% (2010 est. fish) Industry: 26.• • • Energy-cutting efforts by electric companies and train lines slowed the pace of business throughout Honshu Island.2% ( among world's largest and technologicall y advanced producers of motor vehicles.) (Official Exchange Rate) $5. and the stock market gyrated. the Bank of Japan injected more than $325 billion in yen into the economy.) (Per Capita) $34. electronic equipment.2% (2009 est.900 (2008 est. now believe GDP may decline as much as 1% for the year.7 million (2010 est. Estimates of the direct costs of the damage rebuilding homes and factories . Some economic forecasters.1% Industry: 23% Services: 75. dropping as much as 10% in a single day.211 trillion (2009 est.) (Composition By Sector) Agriculture: 1.442 trillion (2008 est. machine tools. steel and nonferrous metals. processed foods ) Services: 69. ships. who previously had anticipated slower growth for Japan in 2011.2% (2008 est.100 (2009 est.) $4.) • • Labour Force: 65.) -5.

• • Unemployment Rate: 5.) • Foreign Exchange Reserves: $1.4 billion (31 December 2009 est.) $1.9 billion (31 December 2009 est.049 trillion (31 December 2009 est.2 billion (2010 est.7% (2010 est.638 trillion Expenditures: $2.8 billion (2009 est. but its corporate tax rate of 30 percent is described as "moderate.78 (2010) 93.) • Exports: $765.6 billion (2009 est.) • Exchange Rate: Yen (JPY) per US dollar 87.096 trillion (31 December 2010 est.8 billion (2010 est. Local corporate taxes added to the .) Budget: Revenues: $1.) • Imports: $636.57 (2009) • Japan has a high income tax rate of 40 percent.) $199.4% (2009 est.) Abroad: $719." The income tax rate can rise to nearly 50 percent when local taxes are considered.1% (2010 est.) $580.) $740.4 billion (31 December 2010 est.) • Stock of Direct Foreign Investment: At Home: $199.9 billion (31 December 2010 est.16 trillion (2010 est.) • Inflation Rate: -0.) -1.) $501.

health of the population.235) 65 years and over: 22.8 years Male: 43.664 (July 2011 est.1% (male 8.257 million Fukuoka-Kitakyushu 2. and estate tax.507 million Osaka-Kobe 11.278% (2011 est. religious affiliations and other aspects of the population.076.571/female 8.815.) Urbanization: Urban population: 67% of total population (2010) Rate of urbanization: 0.829/female 16.7 years (2011 est.475. Japan also imposes a value-added tax.9% (male 12. economic status.) Major Cities .016) (2011 est.673 million Ethnic Groups: Japanese 98.658.Population: TOKYO (capital) 36.) Population Growth: -0.national rate can yield a total rate of about 41 percent.2 years Female: 46. Population: 126.128. tax on interest. ethnicity and education level.5% .2% annual rate of change (2010-15 est.) Median Age: Total: 44.173) 15-64 years: 64% (male 40.325 million Nagoya 3.) Age Structure: 0-14 years: 13.809 million Sapporo 2.521. Social Analysis: • Demographics: The demographic features of the population of Japan include population density.840/female 40.275.

Meals eaten early in the day tend to be the simplest. At New Year's.9% Buddhism 71. and a side dish. however. squid and soured plums.8% Literacy Rate: Definition: age 15 and over can read and write Total population: 99% Male: 99% Female: 99% (3. Japanese Food favorite foods are Rice foods. is ceremonially prepared by a skilled practitioner and served to a small group of guests in a tranquil setting. Some festivals have their roots in Chinese festivals but have undergone dramatic changes as they mixed with local customs.6% Religions: Shintoism 83. Sushi.4% Other 0. The Japanese eat three main meals a day. A typical breakfast consists of rice. entertainment. or matcha.5% of GDP is spent on education) Life Style: • • Sumo or Sumo wrestling is a traditional Japanese contact sport. Beef Sukiyaki and Chicken Teriyaki. children are especially fond of hot rice cakes dipped in sweet soybean powder. is rice (or sometimes noodles). miso soup.Koreans 0. Miso soup and pickles are always served as well. Dolls are dressed in traditional Japanese dresses called kimonos and . others hanabi (Fireworks). Miso Soup. with food stalls. green tea and 'sweets' such as dried octopus.5% Chinese 0. Shogatsu. New Year foods are also eaten because they are believed to represent good fortune or long life. and still others around contests where the participants sport loin cloths. The Girls' Festival (or Doll Festival) is held in March. Special holiday foods. The main ingredient in all three.4% Christianity 2% Other 7. seafood. called osechi . The Japanese tea ceremony (cha-no-yu. Some are based around temples or shrines. • • The most important holiday in Japan is the New Year. are prepared in beautifully decorated stackable boxes called jubako. Sumo still remains popular in Japan today where the top sumo wrestlers are well paid. and carnival games to keep people entertained. or sado) is a traditional ritual influenced by Zen Buddhism in which powdered green tea. curries. such as an egg or grilled fish. chado. Festivals are often based around one or two main events. Onigiri (Rice Ball). Japanese festivals are traditional festive occasions.

to the present. colored rice cakes. comfort). and is calm. Kimonos are generally worn with traditional footwear (especially zōri or geta) and split-toe socks (tabi). Festive foods for Children's Day (May 5) include rice dumplings stuffed with sweet bean paste. Local music often appears at karaoke venues. sculpture in wood and bronze. Everyone in the family eats the foods. The kimono is a Japanese traditional garment worn by women. which is on lease from the record labels. always with the left side over the right (except when dressing the dead for burial) and secured by a sash called an obi. which is held to be the highest duty of the member. Kimono are wrapped around the body. It also has a long history. The word for music in Japanese is (ongaku). and a sweet rice drink called amazake. ink painting on silk and paper and more recently manga. which does not mean relationships based on mere blood inheritance and succession. with attached collars and long. all family members have been expected to contribute to the perpetuation of the family. The Japanese family is based on the line of descent. Ancestors and offspring are linked together by an idea of family genealogy. It is basically composed of a couple as is the family in other societies. The family in Japan is called “Kazoku” in Japanese. Traditional Japanese music has no specific beat. • . combining the kanji ("on" sound) with the kanji ("gaku" fun. ranging from the beginnings of human habitation in Japan. which is tied at the back.• • • are offered rice crackers. men and children. wide sleeves. including ancient pottery. or keifu. sometime in the 10th millennium BC. cartoon. along with a myriad of other types of works of art. but rather a bond of relationship inherent in the maintenance and continuance of the family as an institution. Kimonos are T-shaped. straight-lined robes worn so that the hem falls to the ankle. In any given period of history. The music of Japan includes a wide array of performers in distinct styles both traditional and modern. Japanese art covers a wide range of art styles and media.

and development of rockets and satellites. These provide 34. with fuel imports accounting for 61% of energy production. optics. Japan has received the most science Nobel prizes in Asia. and Tanegashima) Japan became the third largest nuclear power user in the world with 55 nuclear reactors. after the opening of 7 brand new nuclear reactors in Japan (3 on Honshū. notably the Shinkansen and maglev trains. electronics. but the Japanese are running away with it. NEC. which was launched and added to the International Space Station during Space Shuttle assembly flights in 2007 and 2008. Fujitsu. Japan leads the world in robotics.and considerably cheaper. Nintendo. possessing more than half (402. Shikoku. and over 677. Internet Usage and Population Statistics: • • • • • • • • • . It has developed a series of rockets.731 researchers. and Japanese electronic products account for a large share in the world market. It also built the Japanese Experiment Module. robotics. aviation research. Mitsubishi. Sharp.Kyūshū. semiconductors and metals. Hitachi. Japan is also home to six of the world's fifteen largest automobile manufacturers and seven of the world's twenty largest semiconductor sales leaders. Japan has large international corporate conglomerates such as Fuji (which developed the nation's first electronic computer.500) of the world's industrial robots used for manufacturing. delivering more data at a lower cost than anywhere else. Canon. machinery and medical research with the world's third largest budget for research and development at $130 billion USD. The Japan Aerospace Exploration Agency (JAXA) conducts space and planetary research. Japan is also considered to have one of the most advanced trains. as the nation is heavily dependent on imported fuel.200 of 742.5% of Japan's electricity. Americans invented the Internet. Sony and Subar u are also very well known companies in the world. Nissan. H-IIA/B rockets which have the capability of carrying 8ton payload to the GTO at maximum are now managed by the private-own company Mitsubishi Heavy Industry. Sony. chemicals. in 1956) and Sony. It also produced QRIO. ASIMO. Toyota.Technology Analysis: • Japan is well known for its automotive and electronics industries throughout the world. Since 1973. Panasonic. machinery. Epson and Toshiba are among the most well-known electronics companies in the world. In 2008. Broadband service in Japan is eight to 30 times as fast as in the United States -. Japan has the world's fastest Internet connections. Mazda. and Aibo. nuclear energy has been a national strategic priority in Japan. the latest and the most powerful of which is H-IIB. and 1 each on Hokkaidō. Honda. technology. FUJIC. compared to a majority of other countries. Japan has also made headway into aerospace research and space exploration. Japan is one of the leading nations in the fields of scientific research. Some of Japan's more important technological contributions are found in the fields.

The copper cable of the fixed network. Into 2005.2 % Usage Source ITU C+I+A ITU ITU ITU ITU • • • • • By September 2007.419 127.9 % 68. broadband Internet and voice telephony as packaged services from a single provider. The fixed-line network in Japan is undergoing a major transformation as the traditional telephony voice services move into decline. 37.389.979. The potential for E-commerce in Japan is believed to be huge.143.000. .843 128.433 % Pop.0 % 73.804. Much of the success of broadband in Japan is owed to the stunning growth in 2003 of ADSL as a broadband technology.000 127.1 % 60.000 94.000 99. particularly with respect to monetary savings yielded on the cost of conducting and initiating business.540. a subset of the Internet. Japan is an early adopter of triple play models.000 87.137.925.000 78.080.7 million broadband lines in place.679 126.700 Population 126. Japan had 27.078. making it the third largest broadband country in the world after the USA and China (China surpassed Japan earlier in 2004).485 128. noteworthy uptake of FttH and strides in digital and mobile broadcasting.050.8 % 78. This market has witnessed the growth of VoIP and triple play services continued 3G competitions among mobile operators. E-commerce. nevertheless.000 95. which provide TV.YEAR 2000 2005 2007 2008 2009 2010 Users 47.8 % 73. the growing popularity of IP telephony in particular is dealing a blow to fixed-line giant NTT. Japan’s telecommunications sector is one of the most active markets in the world. remains significant in Japan as it must support the millions of ADSL broadband subscribers. has considerably influenced Japan's business outlook and marketing.288.

although government support to universities and laboratories aid industry greatly. Porter's Five Forces .• Most research and development is private. and transportation equipment. which was especially strong in the late 1980s in electrical machinery. chemicals. precision instruments. In 1986 private industry provided 76 percent of the funding for research and development.

Intensity of competitive rivalry 1. Mexico And India There are no substitutes for the particular input. Bargaining power of customers • • • Bargaining Power of customers is low since there is no substitute for salt. Japan is looking for good quality salt. we can build a good trade relation with Japan by providing good quality salt. Japan imports about 8 mn tonnes salt every year most of which comes from Australia and Mexico. The switching costs from one supplier to another are high The suppliers customers are fragmented. Japan is the largest salt importing country in Asia The customer knows about the production costs and quality of the Salt.Threat of new competition 1. India's export to Japan is about 282. Currently Japan Imports about 8mn tonnes of salt. 2. so their bargaining power is low. 3. Since the other companies like (Friends and Jakhau) from India which exports salt to Japan is not up to the standard. 2.000 tonne. This gives an competitive advantage for us to provide the best quality salt to Japan. . Friends and Jakhau are two Indian companies who export salt to Japan Conclusion Japan is the largest salt importing country in Asia. China will soon become the top salt producing country surpassing the USA. Distribution channels are controlled by existing players like Friends and Jakhau.  Access to raw materials is controlled by existing players Bargaining power of suppliers • • • • The market is dominated by a few large suppliers like Australia.

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