The UFC Struggles For Marketplace Traction In Japan
The UFC is of borderline relevance in "The Land of the Rising Sun". This isn't to disparage the UFC, which has done a great job growing MMA in North America and parts of Europe. It's an effort to put Dana White's claims of Zuffa's inevitable worldwide dominance into perspective.
Here are the three essential qualities for doing business in Japan, along with an analysis of what they mean to Zuffa's efforts to build the UFC brand there:
Group Orientation/Collaboration: Japanese businessmen are notorious for sublimating their individual talents and personalities to the greater good of the group. For US businesses seeking to enter the market, a certain degree of partnership with existing Japanese firms is almost mandatory. The UFC worked with Germany s largest concert promoter (MLK) to enter that market with a fair degree of success. Even if the UFC didn't want to go promote with one of the major players in Japanese fight sports, they'd be well advised to seek some sort of a partnership similar to their German initiative to help smooth their way.
Hierarchy: Japanese business and, for that matter, Japanese culture, is almost ridiculously hierarchical. The societal reverence for age, experience and accomplishment in Japan is well known, and that's often a difficult concept for American companies and businessmen to grasp. Much of the reason for this is the relative openness of US culture, particularly as it relates to business. US businesses love mavericks and Horatio Alger stories. That accounts for much of the business media's fascination with Dana White and they're quick to celebrate how a former aerobics instructor is now the most powerful man in MMA and the driving force of a billion dollar company. That storyline doesn't play as well in Japan, however. One approach would be for White to take a back seat in UFC efforts to promote in Japan in favor of Lorenzo Fertitta--who has much more conventional business experience from his time in the casino industry--and perhaps Marc Ratner, widely respected for his time at the Nevada Athletic Commission.
Respect: Respect in business dealings is essential in Japan. In a typical Japanese business deal, the first few meetings aren't intended for any substantive decision making to take place. Instead, they're used for evaluation of your professionalism or, as the Japanese like to put it, to determine your suitability for conducting business with. To succeed in Japan, the UFC must realize that they're not considered a major fight promotion in that country. They must understand that they've got to win over a skeptical public, but before that they have to win over a skeptical Japanese business community. They might be able to run their company like Tony Soprano ran the garbage collection business in the US, but that approach applied to Japan will leave them exactly where they are now--on the outside looking in at the huge, fight crazy economy.
Dana White's fanciful stories about corrupt promoters and Yakzua gangsters out of Quentin Tarantino movies might amuse his sycophants in the MMA media, but countless US companies including fight promotions have done business successfully and profitably in Japan. The UFC might be able to convince the clueless US media that they're making progress in Japan due to a deal on a low profile TV network or, more recently a big ad campaign on a Japanese social networking site, but they're currently spinning their wheels and going nowhere. The only way that Zuffa will be able to become a factor in the worlds #2 MMA market is to do what every other company has done to be successful there--learn how to understand the Japanese approach to doing business, and play by their rules. - 2361
Here are the three essential qualities for doing business in Japan, along with an analysis of what they mean to Zuffa's efforts to build the UFC brand there:
Group Orientation/Collaboration: Japanese businessmen are notorious for sublimating their individual talents and personalities to the greater good of the group. For US businesses seeking to enter the market, a certain degree of partnership with existing Japanese firms is almost mandatory. The UFC worked with Germany s largest concert promoter (MLK) to enter that market with a fair degree of success. Even if the UFC didn't want to go promote with one of the major players in Japanese fight sports, they'd be well advised to seek some sort of a partnership similar to their German initiative to help smooth their way.
Hierarchy: Japanese business and, for that matter, Japanese culture, is almost ridiculously hierarchical. The societal reverence for age, experience and accomplishment in Japan is well known, and that's often a difficult concept for American companies and businessmen to grasp. Much of the reason for this is the relative openness of US culture, particularly as it relates to business. US businesses love mavericks and Horatio Alger stories. That accounts for much of the business media's fascination with Dana White and they're quick to celebrate how a former aerobics instructor is now the most powerful man in MMA and the driving force of a billion dollar company. That storyline doesn't play as well in Japan, however. One approach would be for White to take a back seat in UFC efforts to promote in Japan in favor of Lorenzo Fertitta--who has much more conventional business experience from his time in the casino industry--and perhaps Marc Ratner, widely respected for his time at the Nevada Athletic Commission.
Respect: Respect in business dealings is essential in Japan. In a typical Japanese business deal, the first few meetings aren't intended for any substantive decision making to take place. Instead, they're used for evaluation of your professionalism or, as the Japanese like to put it, to determine your suitability for conducting business with. To succeed in Japan, the UFC must realize that they're not considered a major fight promotion in that country. They must understand that they've got to win over a skeptical public, but before that they have to win over a skeptical Japanese business community. They might be able to run their company like Tony Soprano ran the garbage collection business in the US, but that approach applied to Japan will leave them exactly where they are now--on the outside looking in at the huge, fight crazy economy.
Dana White's fanciful stories about corrupt promoters and Yakzua gangsters out of Quentin Tarantino movies might amuse his sycophants in the MMA media, but countless US companies including fight promotions have done business successfully and profitably in Japan. The UFC might be able to convince the clueless US media that they're making progress in Japan due to a deal on a low profile TV network or, more recently a big ad campaign on a Japanese social networking site, but they're currently spinning their wheels and going nowhere. The only way that Zuffa will be able to become a factor in the worlds #2 MMA market is to do what every other company has done to be successful there--learn how to understand the Japanese approach to doing business, and play by their rules. - 2361
About the Author:
Ross Everett is a freelance sports writer and respected authority on World Cup betting. His writing has appeared on a variety of sports sites including sportsbooks and sportsbook directory sites. He lives in Southern Nevada with three Jack Russell Terriers and an emu. He is currently working on an autobiography of former energy secretary Donald Hodell.
posted by Marcondes Allen at 12:30 AM
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