Japan Global Business Environment

501216172014 AD

A 610Roll # 668

Japanese Economy

• Second largest developed economy• Third largest by GDP• Fourth largest by PPP• Largest creditor nation• Largest electronic goods industry• Third largest automobile manufacturer• 72% GDP through service sector

Japanese Economy

• Did not focus on security and war after WWII unlike most nations and within 3 decades became a huge booming economy

• Most innovative country• Tokyo Stock Exchange is the largest stock

exchange in Asia• 12th of 178 countries in the 2008 Ease of

doing business index

Japanese Economy

• Japanese Prime Minister Shinzo Abe is seen to be an "Indophile" and advocates close security cooperation with India.

• Abenomics includes a "mix of reflation, government spending and a growth strategy designed to jolt the economy out of suspended animation that has gripped it for more than two decades.

Trading Block Member

• ASEAN plus three• APEC• China-Korea-Japan FTA• TPP

Economic Parameters

• GDP – US$ 5960 billion• GDP Growth rate – 2%• Foreign reserves – US$ 1.154 trillion (2011)• Moody’s Credit rating- Aa2

Economic Parameters

• Inflation- -0.03% (2012)• Low unemployment rate- 4.40(2012) • Public debt – US$13.64 trillion (2011)

International Trade Statistics

Advantage in producing commodities

• Very limited resources and scope of production is very limited

• Huge imports and skilled manufacturing leads to great scope

• 3rd largest automobile manufacturer

WTO

• Member since 1 Jan 1995• Committed to help developing countries

benefit from the multilateral trading system and better integrate in the global economy

• Donated more than CHF 9,555,000 since 2002• Keeps donating for various training programs

World Bank

• Member since 1952• Post World War II borrowed more than US$

850 million over 30 loans• Focused mostly on developmental projects.• Did not focus on security and war after WWII

unlike most nations and within 3 decades became a huge booming economy

World Bank

• Completed transition from borrower to source of finance in 1971

• Second largest shareholder in 1984• Over US$ 150 billion bonds have been sold

India and Japan

• As of 2000, there were also around 800 Indians working in the IT industry in Japan, up from 120 in 1993.

• Kenichi Yoshida, a director of Softbridge Solutions Japan Co., stated in late 2009 that Indian engineers are becoming the backbone of Japan's IT industry and that "it is important for Japanese industry to work together with India.”

• Another 870 Indians were employed as cooks.Others are engaged in trading, importing Indian handicrafts, garments, precious stones, and marine products, and exporting Japanese electronic goods, textiles, automotive parts, and jewellery.

India and Japan• Japan is currently India’s third largest source of foreign direct

investment; Japanese companies have made cumulative investments of around $2.6 billion in India since 1991.

• In October 2008, Japan signed an agreement with India under which it would provide the latter a low-interest loan worth US$4.5 billion to construct a railway project between Delhi and Mumbai. This is the single largest overseas project being financed by Japan and reflected growing economic partnership between the two nations.

• India is also one of the only three countries in the world with whom Japan has security pact, the other two being Australia and the United States.

• As of March 2006, Japan was the third largest investor in India with an estimated total investment of US$2.12 billion.

India and Japan• In November 2009, the Japanese steel manufacturer JFE Steel

agreed to partner with JSW Steel, India's third-largest steel producer, to construct a joint steel plant in West Bengal.

• During Prime Minister Manmohan Singh's visit to Japan in 2010, both countries agreed to foster increased business exchanges, people-to-people contact and signed a memorandum of understanding to simplify visa procedures for each other's citizens.

• Other highlights of this visit includes abolition of customs duties on 94 per cent of trade between the two nations over the next decade. As per the agreement, tariffs will be removed on almost 90 per cent of Japan's exports to India and 97 per cent of India's exports to Japan

Commodity to be marketed

Manga, Anime,

Video Games and J-Pop

Commodity

Commodity

Commodity to be marketed

• Japan hopes to raise the percentage of its exports of "soft power" - manga, animated films, video games and pop music - from 2% of the total to 18% over the next decade, creating half a million jobs.

• The cultural affairs agency has reportedly requested 12 billion yen to create a national centre for media art that would promote Japanese pop culture overseas. The manga genre encompasses every possible theme, from tales involving lovable characters for children, to historical and political themes, sports and pornography.

Marketing Plan

• India happens to be a growing consumer of comics

• Osamu Tezuka, (God)of manga wrote biographical manga Buddha from 1972 to 1983.

Marketing Plan

• Product– Comics (Manga)– Animation (Anime)– Video Games– Japanese Pop Music

• Price– It is premium presently but should be lowered to

facilitate purchase by school going children

Marketing Plan

• Promotion– Anime ambassador Doraemon– Fest and fairs– Art competitions– Food stalls with Japanese snacks

like Ramen, Tempura etc• Place– Schools– Book fairs– Bookstores– Second hand bookstores