Merill Lynch in Japan

In: Business and Management

Submitted By sheilakennedy
Words 516
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Merrill Lynch in Japan

Sheila Kennedy


Gary Solomon

April 4, 2011

Merrill Lynch’s first endeavor to penetrate the market of Japan was unsuccessful because their marketplace was not synchronized to acknowledge international companies. However, in 1997 the situation changed in the World Trade Organization (WTO) contract for enhancing overseas firms to promote financial services to national investors. This was the beginning of a new age in the global market. Previous experience made investors hesitate to come into the Japanese market, but also made it abundantly clear that effects have changed with a enormous amount of assets and an open market owned by households in Japan were too attractive of opportunity to pass up.
Merrill Lynch’s timing was perfect because there were only a few other foreign competitors with preceding experience in confidential consumer market, which made the transition more accommodating. In 1997 when Yamaichi Securities obtain bankruptcy, was an ideal opportunity for a company from American to enter Japanese market. Although first considering a joint endeavor this would permit the minimum expenditure as developing an ability to utilize an accessible distribution structure of a well-known bank of Japan. The flipside they did not observe their existence on the market because this ventures in the extensive flow, therefore Merrill Lynch began reconsidering the agreement and were fortunate to hire employees and buy branch offices of Yamaichi's in 1997.
When establishing the company's position, Merrill Lynch definitely won in this state of affairs without coordinating and reporting moves with other Japanese companies. The risk that was taken paid off very quickly regarding massive assessment of the possessions held by the company.
For all big businesses worldwide, the years 2001-2002 were significant as the global downfall of…...

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