This practice is rare in Japan but does occur occasionally in the West. In business terms, it\u2019s referred to as “chicken.” The name comes from the “chicken game,” a contest in which two cars speed toward each other, and the first driver to swerve loses.<\/p>\n
For example, after verbally informing a subcontractor of an order for manufacturing, the buyer might later say: “I couldn\u2019t get approval from my boss after all, so please lower the price by 20%. If you can\u2019t, I\u2019ll have to go with another company.”<\/p>\n
This puts the subcontractor in a difficult position. If they had already begun manufacturing based on the verbal order, stopping now would result in significant losses. At the same time, the buyer risks being in trouble with their boss if they can\u2019t secure the deal. This creates a high-stakes negotiation where neither side wants to back down. Ultimately, the weaker party\u2014in this case, the subcontractor\u2014often ends up conceding.<\/p>\n
This kind of behavior is rare among Japanese companies, which typically prioritize long-term business relationships, reputation, and trust above short-term gains. However, it\u2019s more common in cultures or companies that view business purely as a matter of profit and loss.<\/p>\n
When engaging in business in Japan, be cautious\u2014what may be considered “internationally common” might not apply in Japan.<\/p>\n","protected":false},"excerpt":{"rendered":"
This practice is rare in Japan but does occur occasionally in the West. In business terms, it\u2019s referred to as “chicken.” The name comes from the “chicken game,” a contest in which two cars speed toward each other, and the first driver to swerve loses. For example, after verbally informing a subcontractor of an order […]<\/p>\n","protected":false},"author":1,"featured_media":472,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[129,128,127],"class_list":["post-471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-in-japan","tag-bargaining","tag-business-tactics","tag-international-business"],"yoast_head":"\n