Understanding the Japanese distribution system: An explanatory framework

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Abstract
Analyses the problems faced by foreign investors in the Japanese internal marketplace. Relates these difficulties to the structure of the country's distribution system. Draws on the results of interviews with senior executives from more than 30 major foreign companies operating in Japan to identify common barriers to successful market growth – including Japanese culture, political influences, border arrangements and purchasing characteristics. Concludes that while successful entry into a national market is always difficult for any foreign investor, the limited success of overseas firms in Japan indicates that this particular market is more troublesome than most. Asserts that while Japan continues to suffer from lower levels of overall economic growth, the obstacles for foreign companies will remain.

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