Today, our society is surrounded by information system, computers, and software. It is no exaggeration to say that our daily life depends on software and its function. Accordingly, the business of software has made miraculous growth in the last two decades and is playing a significant role in various industries. In accordance with the growing business needs for effective software and information systems, various firms in various countries have entered the business of software seeking for prosperity. Some have succeeded, some have failed. What distinguishes these firms is its ability to manage and deliver quality products on demand, on time, at a low cost. To achieve such goal, software firms have thought out different methods and tools striving to establish its practice. Nevertheless, many software firms around the globe are struggling to satisfy its clients to achieve business success. With no exception, Japanese software firms are facing difficulties of managing software projects. While its ability to deliver high quality product is well acknowledged among software industry, its high cost structure and schedule delays are thought of as serious problems. Moreover, some of the transitions in the industry are forcing Japanese software firms to seek new opportunities. Therefore, it is important for Japanese software firms to establish more productive ways of developing software products and effective business strategies. Primal objective of this paper is to analyze the present conditions of Japanese software firms and to derive some recommendations which could enhance its current situation. It will also include the discussion of software development practices in US and India firms to better understand strength and weaknesses of Japanese firms and capture some important concepts which can be applied to improve current practice.