In overseas business, there are merits and demerits different from domestic business development. It is easy to realize this when you actually expand overseas, but before taking risks, it is important to know what points are good and what points are dangerous based on past cases. Let’s look for tips for safe overseas expansion from successful and unsuccessful overseas businesses.

Successful examples of overseas business

An increasing number of companies are expanding overseas, regardless of their size. Overseas business has many attractive features such as a large global market and low manufacturing costs, and there seem to be many cases in which they are successful by taking advantage of them. Not only do you realize that you are attractive, but you can also take tips from successful examples and apply them to your own business development.

Successful utilization of high-quality Japanese services

As an example of successful overseas expansion by Japanese companies, we would like to point out an example of thorough follow-up and the establishment of a product brand. There are many countries where after-sales services and service are not yet satisfactory, and it is also an opportunity to show the good service of Japan. By enhancing and thoroughly implementing these measures, we can gain the trust of local companies and customers and gain market share.

Localization success

Companies that have successfully localized their products to win the hearts and minds of local consumers without compromising the value of their products can be said to have succeeded by expanding overseas. We succeeded in implementing a thorough localization strategy without fear of localizing. We are also steadily expanding sales channels through our local subsidiaries and taking advantage of opportunities such as exhibitions and business negotiations to expand our market base.

Succeeded by Passing on High Level of In-house Technology

It is difficult to train local employees overseas and maintain the same high quality as in Japan. However, there are cases in which they have succeeded in doing so and have succeeded in overseas business by bringing their own technologies to the local market. By creating detailed operating procedures, we pass on the technology to local employees and introduce the same tools and production facilities as our domestic plants.

Successful utilization of local employees by training local managers

There are also successful examples of human resource development that is considered difficult for Japanese to enter overseas business. By promoting the transfer of authority from the head office to the local community as a policy and fostering local managers, we were able to learn the corporate philosophy and principles of management, and to draw up the ideal of a manager. In addition, cooperation between local managers and communication with the head office are strengthened, leading to smooth business operations.

Reference: Ministry of Economy, Trade and Industry “Successful examples of overseas expansion

Failure cases in overseas business

In overseas business, there are many successful companies, but there are increasing cases of failure. There are good reasons for failure, and in order to prevent it, it is necessary to know the cause of failure by looking at the case and to devise countermeasures.

Partner Selection Failure

A common failure overseas is the selection of joint venture partners or business partners. There are cases where management and orders are not stable because they are chosen by failing to measure their ability. There are cases of failure even when they were introduced by the local government, such as lack of information collection in the local area, problems of the introduction destination, or in some cases.

Failure at Country Gap

There are also many cases of failures due to conflicts between customs and practices in Japan and overseas. Attempts to implement labor management in Japan can cause local employees to protest, resulting in problems such as an increase in the number of people changing jobs or a strike.

In addition, there are also cases of failure due to a lack of information on local conditions or the dispatch of personnel with insufficient language skills.

Failure due to pride in own brand

Japanese products are of good quality, and made in Japan is becoming popular overseas. However, it’s not good to have too much confidence and pride in your brand. Even though it is well known in Japan, it is not known in the world, and there are many competitors in the world market, and sometimes it is difficult to even enter the Red Ocean market.


Overseas business development entails significant risks as well as significant benefits and attractions. Success in overseas business depends on learning from both successful and failed companies. You need to find the model from the success stories and learn from the failure stories not to make the same mistake.

There are difficult issues such as communication with local people and localization, which Japanese business people and Japanese companies are not good at, but looking at actual cases, many of them have been successful by overcoming the issues. First of all, you should consider the problems to be solved that you can see from the successful examples.