Japan's_Infastructure

Market Entry Analysis Japan Jackie Wabschall Regis University Japan is located in northeastern Asia, between the North Pacific and the Sea of Japan. Japan is equivalent in size to just slightly smaller than California, with four major islands named Hokkaido, Honshu, Shikoku and Kyushu and more than 4,000 smaller islands surrounding it. Japan, and its people, is a land of great natural beauty. Physical contrasts range from snow festivals and lavender farms of the northern isle of Hokkaido, to the sun-drenched beaches and beautiful turquoise waters of the subtropical islands of Okinawa. The Japanese people are equally beautiful with their resilient, orderly, kind nature; they are patient, honest, hardworking and very optimistic people. They are given to self-sacrifice and are other-oriented. They emphasize the common good over personal desires. These natural character traits will serve the people of Japan well, during these tuff economic times of recovery that lay ahead. The capital city is Tokyo, where the population is over twelve million. Japan’s population is over 126 million. There is only one official language spoken in Japan, which is Japanese. However, English is taught as part of the compulsory education requirement, so some English is spoken by the Japanese people. Correct application of the English language, however, is not commonly understood. Entry into the Japanese market at this time, due to the natural disaster, could be favorable if suitable products and services are selected. The struggling economy is in a fragile state of repair and rebuilding, however, the Japanese people are determined to rise above this devastation. According to the Huffington Post, on April 12, 2011, the Bank of Japan will compile an extra budget worth four trillion yen to remove debris caused by the tsunami, create temporary housing and restore the infrastructure. Japan will also allocate one trillion yen to job losses and for aid to the unemployed (Huffington Post, 2011). Japan is in need of help, but if the right market is chosen, it could be a beneficial venture. The population growth rate for Japan 2011 is at an all time low of minus twenty-eight percent. This is a 16.67 percent drop from last year. The age population breakdown is 13.3 percent ages zero to fourteen, 64.1 percent are ages 15 to 64 and 22.6 percent are 65 or above. The male to female ratio is very close until the age of 65 and above. Where there are 12,163,028 males and 16,501,808 females. This demographic shift has triggered concerns about the economic future and the viability of its welfare state. In 1989, only 11.6 percent of the population was 65 years or older. (Wikipedia.org, 2011) The Japanese people believe that 90 percent are middle class, when in fact they average relatively low standards of living, compared to most of the highly developed world. Their perception of what is middle class in Japan is quite different from America’s middle class. They are used to small spaces with large families. The population density is ranked 32nd, just above India and below Belgium. Japan has 336 persons per square kilometer, which is less than a mile; by United States measurements. The current natural disaster has put a strain on the land, resources and people, but it has definitely put pressure on the government as well. The Japanese people are unsure and unhappy with the government’s reaction to the current disaster. The Japanese government is a constitutional monarchy where the power of the Emperor is limited. The current Emperor is Akihito, who acts as the head of state for diplomatic occasions. The Prime Minister is Naoto Kan, who is the head of government, along with the other elected officials; hold the majority of the power. The legislature is run by the National Diet of Japan which has two houses: the House of Representatives of Japan and House of Councillors. The judicial system is the Supreme Court, much like the United States Bill of Rights. This judicial system was instituted on May 3, 1947. Japan does not have administrative courts or claims courts; therefore court decisions are the final judicial authority. Judges are appointed by the Emperor (Wikipedia.org, 2011) Currency conversion, as of Tuesday, April 12, 2011, is one US dollar equals 84.73892 Japanese Yen or one Japanese Yen is equal to 0.01180 US dollar. There are only four bills, the 10,000 yen, 5,000 yen, 2,000 yen and 1,000 yen. There are six kinds of coins, the 500 yen, 100 yen, 50 yen 10 yen, 5 yen and 1 yen. An interesting fact regarding the yen is it was designed to facilitate easy use by people with sight impairments. All of the bills and coins are different in size, from descending order. Public transportation was well developed, however current conditions are updated regularly; due to the natural disaster. The railways of Japan are one of the best rail networks in the world. Kawasaki has recently announced the development of the country’s fastest high speed trains called efSET which means Environmentally Friendly Super Express Train. This train was finalized in March 2010 and it sports a speed of 217 miles per hour. Of course there are taxi drivers in Japan, which can be expensive, and very few drivers speak English. It is customary for the driver to open and close the doors for his customers and tipping is offensive. All of the larger cities have subway systems that are very efficient and easy to use. Air travel is by Nippon Airways or Japan Airlines which are known for their extensive network of flights which cover all of Japan and its islands. Tokyo has a domestic airport Haneda and an international airport Narita. There are ferries which run between major connections. (iexplore, 2011) Japan’s GDP was cut from 1.6 percent to 1.4 percent, and yet the forecast for next year is expected to reach 2.1 percent. This is up from the original forecast of 1.8 percent. According to Governor Shirakawa, with the Bank of Japan, most economists believe the GDP growth rate will turn positive again in the third quarter of 2011. (Bloomberg, 2011) The GDP per capita on a purchasing power parity basis is at $34,200 with the trade as share GDP at 13.6 percent as of 2005 (IndexMundi, 2010). The consumer inflation rate in Japan is currently -0.7 percent, according to Index Mundi. With all that Japan has to offer to the global market, the hard determination of the people, Japan is expected to still show growth. A land line phone in Japan is expensive. You will need to pay 72,000 yen, which is refundable, for a subscribing right. Thereafter, you have to pay 1,750 yen monthly and 10 yen per each 3 minutes of a local call. However, the mobile phone industry in Japan is one the most advanced markets in the world. Currently Japan has 113,025 million cell phones in use. Personal computer use in Japan ranks eleventh in the world at 67.6 per 100 people. With the natural disaster that struck Japan, internet usage has risen to 7.5 million. This is a growth of one third, due to the increased use of Twitter and Quakebook. Friends and family are reaching out to one another, trying to locate people and to help others (Hosaka, 2011) Television ownership is roughly at 99.2 percent of Japanese households, according to the New York Times. The business plan for the Kaiwa Eigo English School is to take the practical use of the English language to Japan. After spending time with two high school Japanese girls, years ago, I realized that although English is taught as a compulsory subject it is not given a great deal of practical application. There remains a great deal of confusion surrounding English slang, pronunciation and utilization. Eikaiwa or English conversation schools have previously been in high demand in Japan, according to the Japan Guide, 2011. The opportunity to teach all ages of Japanese people the art of English conversation, thru either private lessons or online classes, has been highly sought after by the Japanese people. This has been a strength for the teaching profession, in the past. Japanese people are typically very embarrassed by saying something wrong, hence the interest in English conversational learning. There are currently three leading conversation schools in Japan; Geos, Aeon and ECC each operating more that 200 schools across Japan. This market is currently high in saturation. Not only because of the number of schools, but the current natural disaster has brought a different focus for the Japanese people. Currently in Japan, the focus is on clean-up and rebuilding. To enter the market with anything but a necessity that applies to their current situation, at this time, would be a risky business venture. The opportunity will arise again, once Japan has recovered from this disaster. In summary, the Kaiwa Eigo School of English will succeed at a later time. Further Market Research will be necessary to test the market again. The current estimate for further research is in the year 2015. If at that time Japan has not progressed far enough in their rebuilding efforts, further market research could be attempted in 2018. References Bennett, A. (2011). Japan’s Economy to Expand Next Quarter in Quake Recovery. Retrieved from http://www.bloomberg.com IndexMundi (2011) Japan Population growth rate. Retrieved from http://www.indexmudi.com iExplore (2011). Japan Destination Guide. Retrieved from http://www.iExplore.com JNTO (2011). Japan Overview. Retrieved from http://www.jnto.com Mishima, S. (2011). Japanese Currency. Guide to Japanese Currency Yen. Retrieved from http://www.about.com New York Times, The (1984) TV Ownership in Japan. Retrieved from http://www.nytimes.com Nielson, P. (2011). The Personality Characteristics of the Japanese People. Retrieved from http://www.nielson.com Reuters, T. (2011). Japan’s Eartquake Will Hit Economy Harder Than First Feared, Economic Minister Says. Retrieved from http://www.huffingtonpost.com Wikipedia. (2011). Demographics of Japan. Retrieved from http://www.en.wikipedia.org/wiki/demographics_of_Japan