Japan is one of most unique world markets and is often called as black box by foreign companies mainly due to difference of business culture and practices despite of free democratic country.
PEST Analysis of Japanese Market
Politics
- Stable by LD Party
- Limited power to boost economy due to world biggest public debt
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Economy
- World 3rd biggest GDP
- Lost 30 years (Fortune world 20 largest companies from 14 Japanese companies in 1989 to zero in 2019)
- Galapagos Market with harsh competitions of domestic makers by seeking for only increase of process efficiency with low investment & wage
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Society
- Fast aging population – Labor population shrinks to be half in next half century
- Both labor productivity and annual income per capita of US$38,000 are lowest among G7
- Non-regular employment increased double to 38% in 2018 during last 30 years and double-income household is 60%
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Technology
- Limit of Japanese Manufacturing myth due to labor intensive Kanban/Kaizen system to meet single item production
- Late IoT introduction which will be biggest boom in all businesses in coming decade
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