Japan Lean Global Expansion

Introduction

Japan is a diverse country located in East Asia with a population of 126 million. Japan is one of the world’s leading economies with a focus on innovation, technology, and quality. According to the World Bank, Japan is ranked 29th in Ease of Doing Business. Companies exploring a global expansion should consider Japan as a top choice for expansion.

Strategic Location

When considering an expansion to East Asia, many companies view the entire region as the market opportunity as opposed to a single country. Through pursuing this strategy, companies must still carefully consider which country to establish as a primary hub. While China has long been a popular destination, the complex business environment and cultural differences force decision makers to consider alternative options. Japan has a strong financial and legal system, advanced infrastructure, and a highly skilled workforce. This makes Japan an ideal launching pad for the rest of Asia.

Civil Law System

Japan has a civil law system with strong protections for intellectual property rights. This provides companies expanding to Japan with a more streamlined landing pad as well as locals may be more accustomed to foreign standards. In comparison to its neighbors, Japan has a less cumbersome set of legal requirements for foreign companies expanding, including a relatively low paid-in capital requirement and fewer limits on industry.

Investment Support

The Japanese government is among the most proactive in the world with developing schemes to support the startup community. Government accelerator programs include Innovation Network Corporation of Japan, Cool Japan Fund, and Japan Venture Capital Association. Investment programs include Japan Investment Corporation and Japan Overseas Investment Corporation. In addition to programs that support local companies, there are many local tax incentives, such as the National Strategic Special Zone, to attract global business.

Population

Japan is a homogenous population located in the heart of Asia. When doing business in Asia, it is important to constantly be conscious of the variability across cultures. However, Japan’s highly educated and skilled workforce is renowned for their work ethic and discipline. Access to diverse talent can be leveraged as a way to engage and understand perspective customers in a meaningful way.

Summary

In conclusion, Japan offers a strategic location, strong legal system, investment support, and a highly skilled workforce that make it an attractive choice for global expansion. Companies should consider Japan as a hub for launching into the rest of Asia.