Direct and opportunity costs of failure in Japan are high. Don’t fail!

sunset tokyo

by Gerhard Fasol

Failure in Japan is expensive, and may impact your company on a global scale

Opportunity costs can be even higher when you lose Japan’s market to competitors!

Vodafone failed in Japan and sold Vodafone-Japan to SoftBank. Where is SoftBank today and where is Vodafone today globally?

If you fail, it may take you 32 years for the chance to enter Japan again.

(There are 32 years between IKEA’s first and IKEA’s second market entry to Japan).

Consequential costs, opportunity costs and strategic developments can be even more serious than direct costs of failure in Japan

Vodafone’s failure in Japan and sale of of Vodafone-Japan to Softbank laid a key foundations for Softbank’s meteoric rise, including the acquisition by Softbank of chip IP giant ARM, a dominating force for mobile communications and IoT.

It took IKEA 32 years to enter Japan the second time! Can your company afford to wait 32 years for the second attempt?

When a company fails in Japan, it may take 20, 30 years to enter Japan’s markets a second time – a very high opportunity cost lost. Actually, most companies that failed in Japan never come back.

IKEA’s first market entry to Japan was in 1974 via a joint-venture, which failed for IKEA and IKEA withdrew from Japan. It took 32 years for IKEA to enter Japan the second time – this second time successfully and with a totally different strategy, see:
Ikea reenters Japan: IKEA’s first try to enter Japan in 1974 failed for IKEA. Now second try in 2006

Can you afford to wait 32 years when you fail the first time in Japan?

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