Business Strategies and Cultural Implications for Australian companies entering the Japanese Market: A qualitative study on the wine sector.

Abstract

In order to achieve international success, firms must choose wisely from a range of different foreign market entry strategies. This paper will suggest that a viable foreign market entry mode for Australian wine companies entering the Japanese market is performing mergers and acquisition with Japanese wine firms. It will be argued that whilst Australian firms chose to enter the Japanese wine market via exportation, the lack of long term and strong commitment to the market could be detrimental to their future success in Japan. The argument will be supported by a number of country comparisons between Australia and Japan; including an overview of the effects of globalization on the two nations, a cultural comparison and a PESTEL analysis, as well as a number of interviews with CEOs of Australian wine firms and Australian government employees who specialise in the Japanese market. Finally, this report will offer further recommendations for Australian firms in their FDI endeavours in Japan to overcome the challenges that may be present in this strategy, such as difficulties with start up costs and establishing relationships with Japanese counterparts.