It’s not news that Sony is a global company or that (25%) of all Play Station profits’ for the past seven years came from Sony to Japan. After all that’s what international marketing and the global economy are all about, companies like Sega, Nintendo, Microsoft, X-Box doing business around the world. The global economy now reaches every corner of the United States. Current interest in international marketing can be explained by changing competitive structures coupled with shifts in demand characteristics in markets throughout the world. With the increasing globalization of markets, companies find they are unavoidably enmeshed with foreign customers, competitors and suppliers. A significant portion of all products made in the United States is foreign made.
Japan’s economy is based on a strong work ethic and being a leader of technology, in which has helped Japan advance to the second most powerful economy in the world. One notable characteristic of the economy is the working together of manufacturers, suppliers, and distributors in closely-knit groups called keiretsu. The keiretsu, which means “order” or “system,” is a unique form of business that links companies together in industrial groups that provide Japanese business with a substantial competitive edge over non-keiretsu organizations. Keiretsus are collections of dozens of major companies spanning several industries and held together by cross-shareholding, old-boy networks, interlocking directorates, long-term business relationships, and social and historical links. There are six major Japanese industrial keiretsu groups and eleven lesser ones. Together, the sales in these groups are responsible for about 25 percent of the activities of all Japan, and keiretsus account for 78 percent of the value of all shares on the Tokyo Stock Exchange.
Japan’s industry, which is the most important sector of the economy, is heavily dependent on imported raw materials and fuels. For three decades overall real economic growth had been one of the highest, 10% in the 1960s, 5% in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in 1992-95 largely because of the aftereffects of over investment during the late 1980s. Growth picked up to 3.9% in 1996, largely a reflection of low rates of inflation. But in 1997-98 Japan experienced a recession, centered about financial difficulties in the banking system and real estate markets. In early 1999 output has started to stabilize as emergency government spending begins to take hold. Here of some of Japan’s statistics for 2000.
· GDP - $2.903 trillion
· GDP per capita - $23,100
· Labor force - 67.72 million
· Unemployment rate - 4.4. %
· Imports - $319 billion
· Exports - $440 billion
Japan is the home to of the top companies in the world. One of the companies, which has helped...