| Japan
|
|
| GDP |
: |
$4,133 bn |
| GDP
growth |
: |
0.6% |
| Inflation |
: |
0.7% |
| Unemployment |
: |
5% |
| IT market |
: |
$108 bn |
| Total Japanese outsourcing market |
: |
$53.2 bn |
| Estimated number of Indian firms active in Japan |
: |
$9.7 bn |
| India’s software exports to Japan in 2001-02 |
: |
$208 mn |
|
|
Growth Verticals
l Manufacturing:
Contributes about 22 % of the GDP. The electronics and car industries
continue to dominate and successfully penetrating international markets. Japan
is the second largest auto producing company in the world and the world’s
largest maker of machine tools. Real estate and automobile industries account
for 46% of the total B2C market in Japan
l Financial
services: Services contribute about 66% to the Japanese GDP of which the
financial sector alone accounts for 21.7%. The Tokyo stock exchange is the
second largest in the world after New York and the country has some of the
largest government backed banks. The down side is these banks are mired in bad
loans estimated at $ 420 billion though the government has announced its resolve
to halve them by 2005. Annual premiums in Japan totaled up to $ 389 billion in
2000 making the country the world’s largest life insurance market.
SWOT
l Strengths:
The world’s second largest IT market after the United States and way ahead
of European giants like UK and Germany.
l Weaknesses:
Language capability crucial. Sales cycles are inordinately long. Revenue base
grows slowly. Inadvisable to enter if you don’t have staying power.
l Threats:
The banking sector’s woes have real repercussions on the rest of the
economy. It has even led to a fair amount of political unrest in the rest past.
The economy has been slowing for years with sub one percent growth rates. The
Economist however claims that the Japanese economy showed a negative growth in
2001.
l Opportunities:
R&D services and systems software space. Also local Japanese IT services
companies are relatively slow adapters of newer software. India increasingly
seen as a country that can provide the skills and the volumes required for high
technology, time to market solutions. Next Page : Singapore Page(s) 1 2 3 4 5 6 7 8
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