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PESTLE Analysis of Japan

Japan is a small, but articulate, country. They’re advanced in telecommunications yet follow a patriarchal family system. Over one hundred million residents live in Japan and are forced to live in specific locations. And their relationship with several countries is questionable.

Here is a full PESTLE analysis of Japan.

Political factors

Japan is a monarchy. But the current Emperor, Akihito, has little say in the country’s political developments. He is a figurehead — a symbol — but the country has five political parties with stronger influence:

  • Democratic Party of Japan (DPJ)
  • The People’s New Party (PNP)
  • Liberal Democratic Party (LDP)
  • The Social Democratic Party (SDP)
  • The New Clean Government Party (Komeito)

After the Japanese vote for a party, the Prime Minister is elected. Unlike the Emperor, the Prime Minister has influence over the country, especially regarding political and economical laws.

Japan is connected with G8 and ASEAN. They have a rocky relationship with Russia, South Korea, China, and Taiwan. Disputes are related to resources, such as natural gas, oils, and further marine resources.

Economical factors

The Japanese economy is strong. In fact, it’s in the top 5 for largest economies in the world. A strong emphasis is placed on its education system (at one point, years ago, students went to school 6 days out of the week).

Being a contributor to society is a huge part of Japanese culture. It starts at a young age in school. Students lead discussions, solve student problems, and nominate class presidents to lead discussions. During this, teachers often stand back and observe, allowing students to grow and develop their relationships naturally.

This type of management prepares them for the working world. Men are expected to join a company and stick with it for most, if not all, of their working career. Women are expected to work until married.

That said, Japan’s unemployment rate is on the rise (5%). This is a low number compared to other countries but for the Japanese, it’s high and worrisome.

Social Factors

The country has 127+ million Japanese residents.

Japanese women are expected to settle down and marry by age 30. While she may have worked until that point, it’s expected once wed, she leaves the workplace. The couple is expected to have at least one boy who can ‘inherit’ the family’s worth and/or possessions. It’s a patriarchal system. However, birth rates have been low between monogamous couples over the last couple of years.

Regarding religion, Japan is open. Many are Christians, but a few venture into different religions, like Shinto.

Technological factors

Japan has one of the most advanced telecommunications systems, particularly with their mobile devices.

We in the west depend heavily on texting since data is monopolized with restrictions. Japan is the opposite; they have made it possible to connect to wifi virtually anywhere in populated areas. So, instead of texting, the Japanese send emails and pass contact information wirelessly by holding their phones together.

They’ve also developed VoIP growth and other technological advancements. In fact, many key facilities in Japan, such as hospitals, airports, and restaurants, use automation systems. They also have stronger robotic development compared to other countries.

Legal factors

Many laws, such as their Labor and Corporate laws are based on the European system. You can find employee laws in any employment contract, like working hours, minimum wage laws, etc.

Environment factors

Mentioned above, a large population of Japan is concentrated in and around Tokyo. This isn’t a choice, for the most part, because much of the island is overrun by mountain and forest. These areas are inhabitable and reduce Japan’s developments to smaller, accessible sections of the country.

Because it’s surrounded by water, the land is susceptible to tsunamis and earthquakes. With housing and developments packed closely to accommodate the high population, they’re at risk to colossal damage should a natural disaster hit.

Image: ilikestudio/Shutterstock.com

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The Author

Kiesha Frue

Kiesha Frue

Kiesha Frue is a freelance writer and editor with a love for health, wellness, and entrepreneurship. When she’s not researching into the sunrise, her nose is stuck in the latest (and cheesiest) of fantasy novels.