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In: Operations Management

GEOGRAPHIC Distance Framework Analysis (CAGE) of JAPAN SPECIFICALLY GEOGRAPHIC, PLEASE ELABORATE?

GEOGRAPHIC Distance Framework Analysis (CAGE) of JAPAN

SPECIFICALLY GEOGRAPHIC, PLEASE ELABORATE?

Solutions

Expert Solution

Let us first understand the meaning of CAGE analysis. A CAGE analysis helps in understanding the home market and finding the difference between the target market in terms of culture, administration, geography and economy. It is considered as one of the powerful strategic tools and helps business houses in capturing the target market by making changes in the present market.

CULTURE

  • Japan is following a whole set of different culture with Japanese as its mother tongue and Buddhism as its religion.
  • Efforts are put in order to make the people learn English as another language.
  • The values norms and cultures are also different and is long term oriented and thinks about the future outcomes.
  • In Japan the people are considered as the tools to reach to higher levels of productivity.

ADMINISTRATIVE

  • Japan is a democratic administration and enjoys the power of democracy.
  • The legal framework of Japan is strict as the firm's liability is more towards the stakeholders it deals with and accountability is high.
  • The government involvement is very high while running the administration and decisions are taken in collaboration with government.
  • Various kinds of import tariffs are imposed on to the ones who are involved in conducting business with Japan.

GEOGRAPHIC

  • The country face physical remoteness from other nations and is difficult to reach to conduct the business in its local market.
  • The local supervisions is quite intense and hence makes it difficult to trade with in the market.
  • There is lack of internal navigability, hence make it difficult to conduct the business within terms of transportation.
  • Surrounded by North Pacific ocean and contains thousands of islands, hence is more prone to natural disasters.

ECONOMY

  • The economy is labor intensive and sensitive in taking any kind of risks in the long run.
  • There are differences in the quality and cost of the natural resources, financial resources as well as human resources.
  • Advantage can be taken from economic view point as it is flourishing and being a part of prosperous economy adds on to the business.
  • The level of unemployment is not that high, hence running a business can be an easy task with more labor availability.
  • Japan is involved in export of electronic equipments, telecommunications and hence making a strong base for carrying out business.

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