japan to apple's iphone no thanks!
TRANSCRIPT
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Why Western Companies Fails in JapanAn overview by
Saurabh Sao, Pooja Sharma, Shelly Drall
Jindal Global Business School.
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Lets start with few bold
statements
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The Japanese market is infamous for being difficult
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A lot of foreign companies fail to enter Japanese market
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They could do a lot better with a little bit more of understanding
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Before we talk about solutions let’s look at the problems
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In this presentation we will talk about..
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The three Ws
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Who failed?Why did they failed?What can we learn from that?
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Time for a little background knowledge
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Japan’s economy is stagnating since early 90’s but..
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...Japan is still the world’s 3rd largest economy
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Although Consumer Spending has declined
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.. the potential market is BIG..!
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Let’s have a look how Japanese people spend their income
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There actually is money to be made
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There is a big market and there is money to be made. No problem
Right..?
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Not exactly….
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Time and time again Japan has proven a difficult market for foreign companies
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So what’s the talk about foreign companies failing in Japan ?
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Lets have a small Quiz
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Which of these companies failed in Japan?
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All of these companies have failed to gain a foothold in Japan
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Let’s have a more detailed look at some companies and Why they failed in
Japan
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Case: Japan to Apple’s
iPhone“No Thanks!”
Source:
Yukari Iwatani Kane, “Apple’s Latest iPhone Sees Slow Japan Sales,”
Wall Street Journal, September 15, 2008, B3.
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Questions:1. Did Apple make a mistake in trying to sell its latest
iPhone in Japan?
2. Is the Japanese cell phone market similar to cell phone markets in other countries?
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Questions:1. Did Apple make a mistake in trying to sell its latest
iPhone in Japan?
2. Is the Japanese cell phone market similar to cell phone markets in other countries?
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Entry of Apple into Japanese market taught a number of lessons
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Numerous factors affect consumer behavior and their purchasing decisions.
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Apple’s iPhone – A 3G Phone
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3G Phone3G network in Apple’s iPhone is a common feature in
Japan
Most Japanese phones use 3G to access internet services
A feature that has been used for several years in Japan.
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Apple’s iPhone – Touch Screen
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Touch Screen
Clients in Japan feel Apple’s iPhone touch screen will have
problems using this feature.
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Apple’s iPhone – The pricing plans
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The pricing plans
The iPhone’s monthly plan starts at about $60, which is
too high compared to competitors.
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Exposure to Technologically advanced phones
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Technologically advanced phones• Satellite navigation services
• Digitalized TV-viewing phones
• High-end color display phones
• High-definition Camera
Apple’s iPhone lacks some of these features
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Additionally Apple’s iPhone lacks
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Additionally Apple’s iPhone lacks
“The emoji” One of the most cherished features among Japanese phones,
which makes e-mails attractive
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Additionally Apple’s iPhone lacks
A fashion accessoryCellphones are also more of a fashion accessory in Japan
Carrying around an iPhone could make you look pretty lame.
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Additionally Apple’s iPhone lacks
Most mobile phones used in Japanese market allow their users to use it as
Train passes & Debit cardsa phenomenon that is lacking in Apple’s iPhone.
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Lesson learned by Apple
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Lesson learned by Apple How mobile phones consumers in Japanese market
• perceive • reason • think • feel• select
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Lesson learned by Apple How Japanese customers select
• products• brand• retailers
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Lesson learned by Apple
How the company can develop marketing strategies in Japanese market and other markets
like Japan.
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Lesson learned by Apple
How Japanese consumers can be motivated to purchase iPhones that differ from
Japanese mobile phones
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Lesson learned by Apple
About the behavior exhibited by the Japanese consumer when
making purchasing decisions and shopping.
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Lesson learned by Apple
Different consumer behaviors across different cultural and geographical zones affect the
marketing mix of an organization
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Apple in Japan Now..!
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New Strategies• A new and improved iPhone as per customers
demand
• Deal with mobile operators, to sell the Apple iPhone in Japan.
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According to the Counterpoint Research, global Apple iPhone sales grew 26 percent annually crossing 20 million unit monthly sales mark for the first time ever
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So what should I consider before jumping into Japanese Market?
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Questions to ask yourself
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Questions to ask yourself
Can I apply my global strategy or should I develop a local strategy?
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Questions to ask yourself
What's the (Japanese) competition doing?
Can I keep up?
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Questions to ask yourself
Do I market my products correctly to my (Japanese)
customers?
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Bonus Considerations
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Bonus Considerations
Am I catering to special taste and customer demands?
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Bonus Considerations
Does my team understand the cross cultural challenges?
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What are your ideas?Thank you for Listening..!
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Thank you..!