Is Japan a Closed Market?

Business in all countries tends to follow established lines between companies who know one another well. Japan carries these routines far beyond their limits in the West. Clan and fraternal interrelationships may create almost insuperable barriers against ‘outsiders’. Business and personal relations closely intertwine. Creating and maintaining intimate association with buyers is difficult and time-consuming. Masaaki Imai has written, Of course, maintaining friendly relations with customers is an important prerequisite in conducting business anywhere in the world, but it is all the more important in Japan. While a Western manager considers his relations with customers in terms of a contract, a Japanese manager considers his contract with customers in terms of his relations. In other words, the contents of a contract may be interpreted flexibly in view of the importance of maintaining good will. A Western manager may think that the customer should deal with those who come up with better products and offer better terms and conditions than their competitors. That is to tell only half of the story, however. A little more effort in maintaining pleasing relations with a customer can produce a surprisingly favourable outcome in a business deal.