Today’s Business Japanese is “Dangou”.
We often hear this word on TV, but some does not know much about “Dangou”, I think.
Originally, “Dangou” was done by Large Genral Construction companies when they get job from country or local governments.
Usually, several large general construction companies decide the rotation who win the bid of public works.
This time Company A win the bid, next time B firm does, next next time C company, and so on.
They also decide the bid amounts of each company in order to create the situation as if there is healthy competitive bidding.
In all cases, sales persons obtain the budget of public work from country or local governments in advance.
And they always win the bid with 99% of the budget amount. Thus, they are always very profitable.
This is how “Dangou” works.
And this time “Dangou” was done at Tokyo Olympic Games by large advertising agencies.
Does “Dangou” happen only in Japan?
