Cultural Analysis of Japan for Expansion of Postmates
Before any business into a new market, it is essential the marketplace itself is considered. Postmates is looking to expand. This organisation is an on demand delivery service established within many areas of the United States, making more than 100 deliveries a month utilising the model of crowdsourcing most commonly associated with the. The mission of the organisation is to be "the on demand delivery infrastructure for every major city in the world" (Postmates, 2016). With successful establishment within the United States, the company is likely to seek out new markets where there will be sufficient demand for the service, as well as a sufficient supply of individuals willing to work as post mate "partners." One potentially valuable market is Japan;
Background to Japan
Japan is a developed market, which may benefit Postmates with its high level of concentration in metropolitan areas increasing the potential for both supply and demand in a limited area. The market has been growing since 2009, with the total level of the logistics industry in Japan being valued at €15,559 million in 2013 (Statista, 2016). Assessing the viability of the market and appropriate modes of entry, the destination or host country culture should be considered (Gioeli, 2014). This includes the location, the people and the infrastructure.
III. Geographical Setting
Japan is an Island state, with numerous smaller islands included in the territory, located in Eastern Asia east of Korea, between the Sea of Japan and the North Pacific Ocean (CIA, 2016). With a total area of 377,915 square kilometres the country is marginally smaller than the U.S. state of California (CIA, 2016). The topography is rugged, with mountains and the climate varies, there is a cool temperate in the north of the country, while the south has a more tropical climate (CIA, 2016).
IV. Social Institutions
a. Family
Family is very important to the Japanese. The main living conditions are based on the nuclear rather than an extended family, with the social norm being respect and honouring of the older family members. This is evidenced with Hofstede's cultural dimensions of high levels of collectivism (low levels of individualism) and the power distance scale, as seen in the graph on appendix A. The total dependency levels in the cultural 64.5%, with the elderly dependency ratio 43.3% (CIA, 2016).
Outside of work individuals often seek to improve personal efficiency, due to a high level of work commitment and limited family time. It is not unusual to find vending machines on every street corner; there are many service organisations offering delivery of anything from food and shopping through to furniture (Flath, 2005; Nishiyama, 1999).
b. Gender, Power, and Responsibility
The social structure is more highly patriarchal compared to the U.S., with masculine values more dominant also shown in Hofstede's cultural dimensions in appendix A. This creates a more competitive workplace, with a lower level of virtue, especially when compared to countries such as Scandinavia (The Hofstede Centre, 2016). It is quite common for work colleagues to go drinking with their peers, and bosses, after work, but this is generally perceived as a continuation of the workplace relationship, rather than separation for a social relationship (Miller, 2013).
There is a high level of personal responsibility in Japan, therefore, when our difficulties of the plan, the individual undertaking the task will usually accept responsibility, a contrasting approach to West, where responsibility may be shared or avoided (Miller, 2013). Importantly, communication within the workplace is less democratic, for example, the conference room is generally a place for subordinates to report progress, rather than the location for a lively debate (Miller, 2013). This reflects the higher level of power distance relationship seen in Hofstede's cultural dimensions (The Hofstede Centre, 2016), presented in appendix A.
c. Education
Education is well developed; 3.8% of the GDP is spent on education, and the average time spent in school 15 years, from primary school through to tertiary education (CIA, 2016). Japan is classified as having a 99% literacy rate (Index Mundi, 2016). Approximately 46% of all students attend post-compulsory education, either at a University or a junior college (Nishiyama, 1999).
d. Politics
Japan is a Parliamentary constitutional monarchy (CIA, 2016). The monarchy is based on the hereditary system, but has relatively limited power, with the political functions undertaken by a democratically elected parliament, where the leader of the majority party usually takes on the role of Prime Minister (CIA, 2016). There are seven political parties, these include the Democratic Party Japan, the Japan Communist Party, the Japan innovation party, the Liberal Democratic Party which is currently in power, New Komeito, Party Future Generations, people Like Party, and the Social Democratic party (CIA,...
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