Most US companies are interested in doing business in Japan because of its consumer brand focus and market size. In order to be successful in Japan, one must employ experienced specialists who understand the Japanese way of doing business. Success in Japan is directly correlated to the personal investment one dedicates to the region over time. To assess opportunities throughout Japan, Michael Moto takes the time necessary to understand a client’s intellectual capital, core competency, products, services and corporate culture.  This understanding is gained while the necessary business channels and partnerships are developed throughout Japan.
When a company is trying to successfully execute its business strategy in Japan, it is immediately drawn into the unique Japanese way of doing business. For example, most Japanese businesses operate under a collective decision-making process known as the Ringi System.  Japanese business tends to be detail-oriented, focused not only on the bottom line, but also on quality and customer service. Understanding these nuances in Japanese business strategy allows US partners to share a common point of view and develop trust with their counterparts. In addition, Michael Moto possesses the cultural fluency necessary to address issues that arise in the natural course of doing business.  This fluency allows us to pave the way for burgeoning business relationships and prevent progress from being stalled by misunderstanding or misconception.  These established relationships may be challenging to build, but once they exist, they last.

Intercultural Communications Analysis
It is imperative to study the Japanese market in order to enable proper assessment of potential business opportunities. Successful navigation of this market requires in-depth, cross-cultural analysis.  Although the US and Japan are culturally less distinct than in the past, some differences still exist.  Michael Moto provides an experienced team who understand simple, yet subtle Japanese business expressions.  This knowledge can help eliminate misunderstandings, resulting in stronger relationships and additional opportunities.
There are many reasons why competitors are successful throughout the Japanese market. Often the most important differentiators will go unseen unless the appropriate questions are asked.  Michael Moto asks the important questions to ensure that all parties are in agreement, moving forward as global partners.

Some of the questions MM asks during the discovery phase of their process include:

• Does the structure of the Japanese company follow a top-down model or a more typical Japanese model, where decisions are made collectively via internal memo?

• Do the legal, credit, and risk departments control the decision making process?

• Are there political operators or academic cliques within the organization who make decisions collectively and who’s special interests may overrule others within the organization?

To grow one’s business in Japan, one must understand a client’s true intentions and those of their rivals within the organizational structure.

Understanding Executive Management
In order to understand a Japanese executive’s vision within their organization or industry, it is important to establish a solid foundation of trust. Top management typically has pressure from competitors, industry, government and family to “do the right thing.”  Once you understand your partners, suppliers and their customers, you will understand how best to be successful.
In most cases, Japanese senior management teams are comprised of 3 or 4 people.  Their organizational structure is typically comprised of a President (Shacho), Executive Vice President (Fukushacho), Senior Managing Director (Senmu Torishimariyaku) and Managing Director (Jomu Torishimariyaku.)  Within the Japanese leadership team, changes often occur rapidly.  As senior management teams are replaced, it is imperative to strategically plan and develop multiple relationships within the business hierarchy.

Negotiation Process

When one plans a Japanese negotiations strategy, one must truly understand their target organization and its position throughout the industry.

When a target customer in Japan is a large corporation, or a rapidly growing corporation, government or industry politics are likely to come into play.  Often, politics drive the negations.  This is why it is important to understand all the stakeholders’ motives and goals during the negotiating process.

A seasoned Japanese negotiator must not only plan a strategy, but identify and follow “cultural clues“ to rapidly deliver an appropriate proposal.  In doing so, MM avoids any issues that might inhibit delivery of a superior product for an appropriate price to market.  At Michael Moto, whether the client is a manufacturer, distributor or retailer, it is MM’s responsibility to ensure that the client is doing business in a “Japanese way.” Negotiations are an essential part of executing any business strategy. In Japan, negotiations are simply different from the manner in which one executes in the US. Japanese performance requirements and expectations are extremely high when compared to other markets around the world.

Initial Order
Traditionally in Japan, as you near the initial order, volume, lot size, and schedules are continuously “discussed”. Quality control inspection and product accreditation follow. Eventually, product designs and roadmaps are renegotiated with suppliers and manufacturing divisions.

Over time, stakes grow increasingly higher and the specifics of a deal become apparent. Partners and clients begin to ask for more information, including a more detailed schedule, cost reduction schedule, and next generation product information.  As business evolves, US companies begin to understand that, at its core, Japanese business is about building long-term relationships and a focus on the future.

Proposal
Michael Moto will conduct a detailed research analysis in order to understand each of its clients’ opportunities. By examining the current situation in detail, MM will establish relationships with key decision makers, distributors, and manufacturers.  This process typically leads to uncovering additional opportunities and results in realizing synergies with one’s partners.  In phase one of their engagement, MM will discuss a company’s products and services with potential business partners and industry experts. MM will uncover business solutions that align with their clients’ priorities, overall strategy, needs, location and budget.