For some years now, Western managers attempting to succeed in Japan have been advised to adopt Japanese sales and management practices and function as genuine "insiders." Today, however, as the bubble economy deflates and the political system realigns, the dynamics of competition in many Japanese industries now favor the skills and experience of Western firms.

The recent successes of consumer-oriented businesses like Toys "R" Us, Tower Records, Dell, and Compaq suggest that much of the conventional wisdom about what it takes to do well in Japan—shouldering one’s way into established distribution networks, for example—is becoming less important than the ability to manage innovative retail formats or carry out sophisticated market research.

Maverick methods

The Japanese branches of multibillion-dollar American or European parent companies think of themselves as the equals of their huge Japanese competitors. But they are in reality only small or medium-sized companies. So their model for success should be the smaller Japanese companies that have no wish or need to become members of the "club." These entrepreneurial, high-growth companies defy the rules of the game and operate in a manner that is actually second nature to many Western firms. And the mavericks are flourishing.

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