Johnson Controls has obtained management control of Tokyo Biso Kogyo, traded on the Second Section of the Tokyo Stock Exchange. For years, it was impossible for foreign firms like TBWA, Merrill Lynch and Cargill to have majority control of firms in Japan's service industries. Howmet wanted control of its long-term manufacturing joint venture with Komatsu before introducing more of its proprietary technology and operating methods. Other companies have figured out ways to avoid overhead. Herbalife, the vitamin and health products company, contracts with Air Express International to break down its large shipments to Japan into customer orders, avoiding the hefty expense of having its own large distribution and fulfillment staff in Japan.
Executives know better than pundits.
With so much of the world in recession, but Japan poised to rebound, many are now giving Japan a second look. When the yen is strong, they know how to manage exports profitably. When it's weak, they know that everything from Japanese office space to advertising to acquisitions is cheaper. Foreign company executives working with Japan don't have the time or the interest to proclaim themselves winners. But if you ask them, they'll tell you the truth - the only insurmountable market barrier to Japan these days is not being there.