Japan’s efforts to acquire US Sprint Nextel Corp. has made it to the mainstream, but many acquisitions have slipped under the rader and have not drawn much US media attention. However, according to Retail Japan News’s article “Economy Growth: Japan on Buying Spree”, they have now managed to spend over $101 billion in overseas investments.
For decades, SONY has been famous for their consistent domination of the electronic market around the globe, but with Korean Company SAMSUNG and American based company Apple, SONY is becoming one of the many Japanese companies struggling to keep up as a world power. Many competitors from around the globe are starting to catch on the globalization trend and are expanding into territories only once tread by the Japanese.
According to a recent article in the Japan times, the amount of mergers and acquisitions of foreign companies by Japanese firms is hitting record highs and shows no signs of slowing down.
This year alone, Japan’s M&As have gone up 7.4%. Though still at 364, at this rate thier final total for the year is expected to approach if not surpass their record high of 463 in 1990.
To read more on this particular acquisition refer to this previous blog post. click here.
Other examples include the acquisition of the major advertising agency Dentsu Inc.’s acquistion of British peer Aegis Group PLC, and Daikin Industries Ltd.’s acquisition of thier U.S. rival Goodman Global Inc.
Though very common now, Japanese acquisitions were originally very controversial, especially in the US marketplace. Their expansions were often referred to as invasions and their acquisitions were often marked as putting American traditions and values at risk. Two major controversial acquisitions in Japanese history include the purchase of Colombia Pictures Entertainment by Sony and the purchase of the Rockefeller Center by Mitsubishi Estate.
Japanese Retail Giant Uniqlo has gained a trusted and respected reputation in their domestic market. Their goal now has grown to become the number 1 apparel retailer int he world. Since their first store in Hiroshima Japan in 1984, they have opened over 1,000 stores worldwide. This video takes tour of a US store to see what exactly has made this store so successful in foreign and domestic markets alike.
Most Japanese companies attempting to expand their market beyond their homeland are doing so to increase their profits. However, a piece on Reuters this morning says these expansion could be whats driving Japan’s economy straight into a recession.
While the US economy actually showed a slight pick up in the last quarter, Japan’s economy showed a .9 percent decrease in GDP. The Senior Economist at Mitsubishi, another globalized Japanese company explains that their data proves that Japan has now fallen into a recession.
Rakuten Inc. is someone reminiscent of amazon in that it is a Japanese version of an online mall. It has recently accounced that is looking to expand into Australia and India. Their CEO Hiroshi Mikitani stated that his ambition is to have 70 percent of sales outside the domestic market by 2020. One unique angle they are testing is an investment in Pinterest.
The Modern Tokyo Times this morning commented on their favorite books to help address the obstacles that expanding companies face, and the benefits that inherently exist in having a larger market. Japan’s business sphere is becoming increasingly global due to their rapidly advancing technology but most companies have to overcome many cultural and structural differences that come with a foreign market. Their article “Top 10 Books for Excelling in the Global Marketplace: Understanding Culture” divides the books into 3 categories in regards to globalization.