PESTEL Analysis of Japan: A Case Study for Aboriginal Cultural Tours

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MRKT 20057 Assignments 2
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Executive summary
This study has attained the information about the importance of globalisation and how
Aboriginal cultural tours can grow in Japan. Importance of growing or expanding the company
in Japan is also represented in this study. PESTEL analysis is also conducted on international
marketing and shown the factors which can affect the working of the company. This study will
also consist of the reasons behind the expansion in Japan and how this expansion will help the
Aboriginal culture tour.
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Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Discussion on the environmental variables.....................................................................................5
PESTEL analysis of Japan...........................................................................................................5
Political environment...................................................................................................................5
Economic environment................................................................................................................6
Social environment......................................................................................................................6
Technological environment.........................................................................................................7
Environmental analysis................................................................................................................8
Legal environment analysis.........................................................................................................9
Conclusion and Recommendations................................................................................................11
References......................................................................................................................................12
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Introduction
Global marketing is known as the process which adjusts the strategies of marketing of the
company to accept the change and the condition of the market. The globalisation is not just
selling products and services outside the country, but it is making relation with another country
and increasing the customer reach so that the goodwill of the company or the culture can be
created in different countries. Marketing activities have taken on a greater scale which helps in
reconciling the advantages of the operations carried on globally so that global objectives can be
met by the company or organisation.
The company which is selected in this study is aboriginal cultural tours. The tourism will assist
in reaching to such unseen places of Adjahdura Land as well as the Ngadjuri country. This
tourism will help the travellers to directly get in touch with the native people of Australia that is
the aboriginal people and also will get to know about their cultural values. The CEO of this
company wants to expand its business on an international basis. To expand, the CEO wants to
probe the opportunities in the market for the promotion of the company internationally in Japan.
A report will be formed in this study on threats and opportunities in Japan after the analysis of
the environment of the market. The factors which are included in the analysis are economic,
social, political and technological which influences the market of Japan.
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Discussion on the environmental variables
PESTEL analysis of Japan
Japan's PESTEL analysis has the objective to address a few issues related to economic,
technology, political, environmental factors which are affecting the working of Japan in the
current situation. Japan is sometimes called the ‘land of rising sun' which means that it is the
country which is growing day by day which makes it the most desirable country today.
Aboriginal cultural tours want expansion in the Japanese market and to grow their business in
Japan, PEST analysis is conducted by the company so that they can understand the situation and
condition of the country and whether they will be able to grow there as a company or not
(Ratten, 2017).
Political environment
Aboriginal cultural tours find Japan as a constitutional monarchy where there is one person who
controls and rules the country and that person has the power to take the decision for the country
and people who are living there. There are very few political affairs which are recorded because
the method of leadership which is used by this company is monarchy method in which there is
only one person who controls or own the decision making the power of the country. Japan keeps
a very close relationship with the United States because they can help each other in creating
something new. This strategy is part of foreign and security policy. They are putting a very high
amount of efforts to create and maintain the relation with other powers of the world like the UK,
France, Australia and India. Japan is contentious politically, and it might impact their investment
which they receive from foreign and their trade.
The campaign of international marketing which is conducted by the company on Japan is really
affected by the political environment of the country because the government of the country will
interfere in the working of the company that is why the company have to take permission from
the government of the country to carry on expanding their business in Japan (Freedman, Kevin,
2015). The political factor of the country is playing a very important role in the expansion of the
tourism in Japan because of the international community of the country is very stable, and most
of the companies want to expand their businesses there but due to some issues they are not
getting the permission to grow.
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The stability of the political environment of the country internally is strong, and the country is
surrounded by some of the highly powerful neighbours who make them face diplomatic
challenges.
Economic environment
This factor is also important for Aboriginal cultural tours to grow in Japan. The company knows
that Japan is the world's third largest economy which holds the GDP of trillion dollars in totality.
However, as per the report of the World Bank, the growth rate of Japan’s economy is increasing
day by day. The company wants to expand their business in Japan because they know that they
will get a high amount of exposure there which will help them in getting in touch with the larger
number of people (Wisnik, 2016).
The economy of this country is 2nd largest in Asia. Japan has a mixed system of economy, and
the industry of this country closely work and cooperates with the government of the country.
Aboriginal cultural tours campaign is affected by the economic factor of the country which is
conducted to understand the international marketing of that particular company because this
shows the reality of the condition of Japan and make company face the problems which they
might have to face while running their business in that country. The reliability of Japan is highly
on gas, oil, ore, coal, copper, aluminium, raw material and wood for the production which is
carried on in the industries (Honjo, et. al., 2018).
These materials are mostly imported by other countries like USA, China, Germany, Australia,
etc. The companies like Aboriginal cultural tours who want to establish their business there only
have to pay the tax on the income they are generating by their business operations. The
companies which are established in Japan have to pay the corporate taxes on their generated
income from within or abroad. The government of Japan have to approve the plan to decrease the
rate of tax to 20% for the companies that increases the income of the companies in a very
aggressive manner which gradually grows the capital spending of the country domestically. As
the economic policy of the country is sufficient, tourism operations can get growth and
sustainable opportunities in the chosen country.
Social environment
Japan is a very prosperous country in terms of social relationship with their people and people or
companies in another country. The ranking of Japan in population is on 10th number all over the
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world. The total population of Japan is 126.4 million which is high as compared to most of the
country (Song, et. al., 2017). There are only two religions which are followed by the people of
Japan and the language used in this country is Japanese. This country faces so many social
challenges. The birth rate and ageing of the population is one of the very biggest problems or
challenges faced by people or companies in Japan. The Aboriginal cultural tours company should
handle the social environment of a country if they want good results because without the support
of the population of the country where a company wants to start will not be able to grow (Kaptur,
1988).
A company should take care of the culture and sentiments of the people in order to sell their
product or services in that particular country. There are many people in Japan who prefers to buy
products from Japanese company as compared to a foreign organisation because they support the
local companies so that the GDP of the country can grow at a higher rate. This condition makes
it difficult for foreign companies to work (Вячеслав Анатолійович Некрасов and Вадим
Іванович Мельник, 2017).
The main reason for the failure of foreign companies in Japan because they do not focus on the
social environment of the company which can make working better and profitable in Japan. The
rate of life expectancy for males is 81 years and 87 for women. Politicians of Japan are now
coming into highlights as an integrated policy of immigration to attract the vertical foreign
workers in Japan to decrease the gap of skills developed by the birth rate which is shrinking day
by day.
Technological environment
Japan is a highly technologically advanced country all over the world. The people of Japan are
highly creative and always want to create something new and technologically innovative which
can help the general public and make their works easy. It is a well-known country for the
creation of new, advanced and high-tech innovations by the help of new and modern technology.
The usage of an automobile system is very high in Japan as compared to other countries,
particularly in airport, hospitals and restaurants. The level of technology has been pushed by this
country and took it to the next level which contributes to the betterment of humanity and
economic growth of the country and companies.
Aboriginal cultural tours company will be helped by the technological advancement of the
country because it will make it easy to run business and create better customer relationships
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(Song, et. al., 2017). This will automatically increase the profit of the company when they will
grow their market with the help of technology and gradually reach a height of market reach,
which each and everyone wants to attain in their business. Japan is one of the most advanced
countries in the development of robotics which makes working easy in big industries. It owns
half of the robotic industries of the world. This will definitely have its effect on the international
marketing campaign which is run or conducted by a company which will help in the expansion
of business in Japan. This country is known for technology and technological advancement
because they invest lots of money in the creative and innovative ideas of the people which
eventually bring out something new out of them. Thinking of something creative is not necessary
but to implement that idea into reality is very important because these types of ideas gradually
help the general public in their everyday working (Blahova, et. al., 2015).
Environmental analysis
Aboriginal cultural tours should take care of the environmental factor of Japan if they want to
expand their business there successfully. Japan is very responsible for its cleanliness and
environment which is really beneficial for the people who are living there. The people who are
living in Japan are highly responsible and dedicated towards cleanliness of the country and they
never let anyone throw garbage on the road or public area. A clean environment is very
important for a good and healthy lifestyle because if the population of the country do not stay fit,
they will not be able to serve their country and make their country prosperous. The people of
Japan are highly hygienic and always take care of their health irrespective of their situations
(Yotsui, et. al., 2016).
Companies which produce a high amount of pollution in the country have to support the
environment in other ways whether by planting trees or any other type of activities which shows
their concerns for the environment. Waste management is the main issue or problem which is
faced by Japan in recent times because the population of the country is increasing day by day and
the level of population is equivalent to the amount of garbage or waste product is going to
produce by within the country. Aboriginal culture tours always support the cleanliness of the
country and the place where they work because they know the importance of a clean ambiance
within the workplace. Trash or waste produced due to the modernisation of society, harmful
activities are done by industries and contribution of agriculture contributes to the high level of
production (Chattopadhyay and Bhawsar, 2017). Japan is in the high amount of pressure in
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decreasing the waste and control the pollution in the environment. A company should always be
careful about the environment of their surrounding which is very important for the protection of
the natural resource given by nature.
The highest amount of natural calamities and disasters occur in Japan. Floods, tsunamis,
mudslides, earthquakes, volcanic eruptions and cyclones which hit Japan regularly. Aboriginal
cultural tours should keep their employees and build safe from these types of natural calamities
or disasters and in order to apply this plan they have to construct their building in such a way
which has the capability to face the disaster and must choose that place less prone to earthquakes
and any other type of calamities (Caiazza, et. al., 2017). These calamities cost billions of dollars
of Japan for the reconstruction of all the things which are destroyed in a disaster. The reason
behind Japan being less popular tourist place is just because that country is highly prone to these
types of activities and no one wants to cost their lives by going there as a tourist, high cost of
everything and barrier of language. The environment factor will affect the analysis conducted by
the company for international marketing because the country will not compromise any loss of
environment due to the working of any company. Lots of problems are faced by the company in
analysing the environment of Japan because they have to tackle an earthquake while they were
searching for the information (Kumasaki, et. al., 2016).
Legal environment analysis
To know the legal parameters of a country is very important and the company must take care of
the country's legal boundaries to work as per the law. If a company wants to expand its business
in other countries, then they should do it in a very lawful manner so that they cannot get
blacklisted by the country where they want expansion. People in Japan can work as a dispatched
worker, employee, director and independent contractors as they can feel suitable and safe.
Employees who work in Japan enjoy the benefits and rights which they receive from the
company and government of Japan to their workers (Edgington, 2018).
The benefits are like work breaks, work hours, holidays and leave to women for maternity.
Aboriginal cultural tours company have to register their employees under the government
pension plan, unemployment insurance plan, health insurance plan and insurance for the workers
who met with the accidents while working in their company (Esposito, 2017). All of these plans
are created by the government of Japan for the people who are working as an employee in that
country. The legal factor can affect the campaign of international marketing because knowing the
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legal process of a particular where the company wants to expand their business is very important
so that they do not face any problem regarding laws of that country (Miyoshi, et. al., 2015).
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Conclusion and Recommendations
In this study, the explanation of PESTEL analysis is shown and how it helps the working and
expansion of Aboriginal cultural tours company. It also shows the importance of marketing
globally and how a company can grow by expanding their business in other countries. It is also
showing the effects which this company face while they were collecting the information about
international marketing for the company in Japan. The advantages and disadvantages of growing
the company in another country are also described in Japan. The main reason behind choosing
Japan as a country for the expansion is also given in this study which really helps a company to
understand whether their decision of expanding their business or organisation in Japan is right or
wrong. Japan is a highly opportunistic country, and the population of this country plays a very
important role in why this company wants to expand its business there.
 A company should follow the rules and laws of Japan if they want growth there.
 The company must look after the environment of Japan; otherwise, they will not be able
to carry on their business.
 The company have to build their workplace at that are of Japan which is less prone to
natural calamities.
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References
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Japanese business environment. International Journal of Productivity and Performance
Management, 64(3), 416-433.
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Opportunities in the Global Business Environment. Thunderbird International Business
Review, 59(2), 147-151.
3. Chattopadhyay, U., & Bhawsar, P. (2017). Effects of Changing Business Environment on
Organization Performance: The Case of HMT Watches Ltd. South Asian Journal of
Business and Management Cases, 6(1), 36-46.
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investment in Australia. Routledge.
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needs without damaging the brand. Journal of Brand Strategy, 4(1), 15-26.
7. Honjo, Kimura, Baba, Ikehara, Kitano, Sato, & Iso. (2018). Association between family
members and risk of postpartum depression in Japan: Does "who they live with" matter? -
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Forum, 12(1), 29-39.
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10. Miyoshi, Y., Furutani, M., Ishihara, M., Tai, S., Furuta, Y., & Kawai, S. (2015).
Technological development for the control of humidity conditioning performance of slit
materials made from Japanese cedar. Journal of Wood Science, 61(6), 641-646.
11. Ratten, V. (2017). Gender Entrepreneurship and Global Marketing. Journal of Global
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