japan to apple's iphone no thanks!
TRANSCRIPT
Why Western Companies Fails in JapanAn overview by
Saurabh Sao, Pooja Sharma, Shelly Drall
Jindal Global Business School.
Lets start with few bold
statements
The Japanese market is infamous for being difficult
A lot of foreign companies fail to enter Japanese market
They could do a lot better with a little bit more of understanding
Before we talk about solutions let’s look at the problems
In this presentation we will talk about..
The three Ws
Who failed?Why did they failed?What can we learn from that?
Time for a little background knowledge
Japan’s economy is stagnating since early 90’s but..
...Japan is still the world’s 3rd largest economy
Although Consumer Spending has declined
.. the potential market is BIG..!
Let’s have a look how Japanese people spend their income
There actually is money to be made
There is a big market and there is money to be made. No problem
Right..?
Not exactly….
Time and time again Japan has proven a difficult market for foreign companies
So what’s the talk about foreign companies failing in Japan ?
Lets have a small Quiz
Which of these companies failed in Japan?
All of these companies have failed to gain a foothold in Japan
Let’s have a more detailed look at some companies and Why they failed in
Japan
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.
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?
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?
Entry of Apple into Japanese market taught a number of lessons
Numerous factors affect consumer behavior and their purchasing decisions.
Apple’s iPhone – A 3G Phone
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.
Apple’s iPhone – Touch Screen
Touch Screen
Clients in Japan feel Apple’s iPhone touch screen will have
problems using this feature.
Apple’s iPhone – The pricing plans
The pricing plans
The iPhone’s monthly plan starts at about $60, which is
too high compared to competitors.
Exposure to Technologically advanced phones
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
Additionally Apple’s iPhone lacks
Additionally Apple’s iPhone lacks
“The emoji” One of the most cherished features among Japanese phones,
which makes e-mails attractive
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.
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.
Lesson learned by Apple
Lesson learned by Apple How mobile phones consumers in Japanese market
• perceive • reason • think • feel• select
Lesson learned by Apple How Japanese customers select
• products• brand• retailers
Lesson learned by Apple
How the company can develop marketing strategies in Japanese market and other markets
like Japan.
Lesson learned by Apple
How Japanese consumers can be motivated to purchase iPhones that differ from
Japanese mobile phones
Lesson learned by Apple
About the behavior exhibited by the Japanese consumer when
making purchasing decisions and shopping.
Lesson learned by Apple
Different consumer behaviors across different cultural and geographical zones affect the
marketing mix of an organization
Apple in Japan Now..!
New Strategies• A new and improved iPhone as per customers
demand
• Deal with mobile operators, to sell the Apple iPhone in Japan.
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
So what should I consider before jumping into Japanese Market?
Questions to ask yourself
Questions to ask yourself
Can I apply my global strategy or should I develop a local strategy?
Questions to ask yourself
What's the (Japanese) competition doing?
Can I keep up?
Questions to ask yourself
Do I market my products correctly to my (Japanese)
customers?
Bonus Considerations
Bonus Considerations
Am I catering to special taste and customer demands?
Bonus Considerations
Does my team understand the cross cultural challenges?
What are your ideas?Thank you for Listening..!
Thank you..!