Vol. 3 “We’re Not Starting With the Broadest Market”

When foreign companies consider entering Japan, attention often gravitates toward large markets and high-profile categories. But listening to Mattermost CEO Ian Tien suggests that this instinct may be backwards.

The more important question, he argues, is not where the market is biggest, but where a company’s strengths resonate most deeply. As AI becomes embedded in daily operations, the issue facing enterprises and governments is no longer convenience alone. It is increasingly about who controls knowledge, who governs decision-making, and where that intelligence ultimately resides.

In this interview, Tien shares his perspective on where foreign companies should begin when entering the Japanese market—and why the most constrained environments may offer the strongest starting point.

Start Where Your Value Is Clearest, Not Where the Market Is Largest

Q: When people talk about entering Japan, the conversation often starts with market size. How do you approach it?
Ian Tien: I don’t start by aiming for the “largest” market. What matters more is identifying where your value is communicated most clearly.

For us, that was not consumer-facing markets. It was organizations where confidentiality and control are critical—manufacturing, high-tech industries, government, critical infrastructure, and defense. In these environments, how information is handled directly affects operations and governance.

In such contexts, the question isn’t just whether a tool is convenient. It’s who manages the platform and how much control the organization retains.

Depth Before Breadth

Q: So rather than going broad, you start with environments where the need is deepest?
Ian Tien: Exactly. Large markets may look attractive, but they don’t always allow for meaningful differentiation.

Highly constrained environments, on the other hand, have very clear requirements. What must be protected, what cannot leave the organization, and where control is required—these things are explicit. That clarity makes it easier for a company’s strengths to stand out.

When thinking about Japan entry, it’s important not to focus only on market size, but to ask: Under what constraints are we strongest as a company?

Why This Question Matters More in the AI Era

Q: Has this way of thinking become more important in the age of AI?
Ian Tien: It has become significantly more important. Once AI enters daily operations, the conversation goes beyond communication tools or workflow software.

Questions emerge around where knowledge accumulates, who can use it, and whether the value created remains inside the organization. These are governance-level concerns.

That’s why, in the AI era, it’s not enough to ask how many people can use a product. You need to understand which customers treat that platform as part of their core business or governance infrastructure.

Why Japan Is Well Suited to This Approach

Q: From that perspective, what potential do you see in the Japanese market?
Ian Tien: Japan has many industries that align well with this way of thinking. Manufacturing, critical infrastructure, advanced technology companies, and public-sector organizations all place a high priority on information management and control.

At the same time, expectations around quality and continuity are extremely high. That means simply bringing in a “convenient product” is not enough. Companies that can provide a platform that truly works in these environments have significant potential in Japan.

High Barriers Are a Feature, Not a Bug

Q: These sectors also seem to have high barriers to entry.
Ian Tien:They do—and that’s precisely why they matter.
High barriers mean these are not markets anyone can enter casually. And when you look closely, those barriers exist not because the markets are closed, but because there are important things that must be protected.

For companies that understand those needs and can deliver the required quality, control, and support, these environments become very strong markets. Rather than avoiding them because they are difficult, companies should ask whether they can truly meet those conditions.

A Broader Lesson for Foreign Companies Entering Japan

Q: Does this way of thinking apply broadly to foreign companies considering Japan?

Ian Tien:I think it does. Many companies try to build awareness by starting in the widest possible market.

In reality, starting in domains with strong constraints—where your value proposition is most evident—often leads to a clearer market position. From there, you can build trust and a track record.

In practice, companies entering Japan may find it more effective to begin with environments where their value proposition is clearest, rather than trying to appeal to everyone at once.

Editorial note:Tien’s broader point is that foreign companies entering Japan should not define their initial opportunity by size alone. They should ask where their value is most clearly needed—and where their strengths are most defensible.