The expansion team has done an extensive study and market research has identified that there is huge growth potential and a very lucrative business opportunity for manufacturers wanting to sell heavy-duty trucks to Eastern Asian countries. One thing to remember by choosing a new international market is that ethical situations may arise. Specific marketing strategies used elsewhere may not work in Eastern Asian market, so knowing and being able to account for cultural differences will be important.
When moving into the Japanese market, the company will have to be very aware of formalities and cultural variables. Japan has a long history of tradition that carries over even to business dealings, so the American way of marketing business could be considered rude and hasty.
Some major Japanese cross-culture issues that may impact the marketing approach are: being able to understand formal business traditions; gifting; and understanding conditions affecting product pricing.
The Japanese are steeped in their culture, which includes formal business traditions. Just entering their country, setting up an internet website, dropping some brochures, and sending a few corporate letters or emails will not get a marketing team in the door. Approaching the Japanese culture should be done carefully since they put a very high value on reputation, professionalism, and trust. Even the act of presenting or receiving a business card properly can result in a successful contact or a failed venture. Not being dresses appropriately for the meeting will be considered an insult. Rumors can even ruin a business in Japan! The company needs to establish a good business relationship with potential clients before they will consider purchasing a pro...
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...’s not needed, just on fear of losing the sale. Marketing strategies common in the United States would need to be restructured in order to win customer’s support in the Japanese market.
Due to the complexity of the Japanese culture, one of the best possible solutions to minimize obstacles would be to hire a mediation expert to the staff or hire a mediation firm that speaks and reads the language fluently, knows intimately the culture and formal procedures, understands contracts and currency, and knows the proper entrance and exit strategies for doing business in Japan. All individuals interacting with the Japanese clients or prospects would need to be properly trained in order to avoid cross-cultural issues that may arise. Doing this should greatly improve the company’s marketing strategies and help the expansion team to secure another international market.
On the first board meeting, WRSX board decided not to take the market opportunity in China because of the intended strategy that was made in the strategic choices in order to create efficient local presence first . The client feedback suggests that it is too risky to develop presence in China's market. On the other hand, the feedback suggests that not entering Chinese market will lead to missed business opportunities in the country and with clients looking to create global campaigns there. By that time, the negative impact in entering Chinese market could be in terms of financial and business risk. However, the feedback suggests a positive impact for management of growth, client attraction and retention and leadership capability. The decision to create cultural change in New York, where WRSX already have an office, was taken in complementation to maintain the poor performance of the local agency in US.
The trucking industry over the years have changed the type of services and the quality that it has provides to its customers. In today’s industry the focus is on efficiency with the overall beneficiary being the American consumer. Majority of today’s freight is being transported by truck during sometime in the distribution chain. Some of factors the trucking industry is facing today include hours and earnings and safety issues.
When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid and costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.
...al Impediments Initiative (SII) Report (1991), Japanese law and enforcement were strengthened, and Japan essentially has a U.S. style antitrust law. However, in most areas, enforcement by the Japanese Fair Trade Commission (JFTC) is much less aggressive than that of the U.S. antitrust agencies. The remedies available through private suits are very limited, and Japanese courts are reluctant to embarrass their government with findings that oppose its policies or the actions of one of its key ministries.
Peterbilt When our country was at war, the military identified the need for trucks. Trucks were very important because it was difficult to find a way to transport all the supplies, troops, and food. After WW1, this brought an increase in good roads, plus an expanding economy. This helped grow the trucking industry. The 1920’s were the years of innovation.
Japanese culture has many distinctive characteristics, buried in a long and rich history. Japanese people are a very proud people, who believe in love and respect and living a peaceful life. There is a distinct social structure as with many other countries. The Japanese have a language that has been adapted from other languages and built into a unique language of their own. Japan has much pride in their food and cooking techniques and preparation of their food. The Japanese culture can deter international business people due to a lack of understanding the business etiquette in Japan.
Export trends have been an important factor during Japan's present economic adjustment period, and the structures of Japanese exports, together with the imports, have been changing substantially in recent years. The changes in the country's export and import structures during the 1990s can be characterized by the following three key developments: (1) the weight of IT-related goods has been rising in both real exports and imports; (2) real imports of consumer goods from East Asia has been increasing; and (3) the US remains Japan's largest trading partner as a single country. Due to these factors, maintaining its comparative advantage became the priority in the current global economy.
While their domestic figures were rosy, the international operations were losing ground. The once profitable Japanese market was declining, and the European and Middle Eastern ventures failed to gain momentum. Unfortunately, the U.S. market was experiencing saturation and the only way to grow seemed to be the overseas markets. They achieved entry through the use of wholly owned subsidiaries, licensing deals, or joint ventures.
The Japanese culture is based on its long rich history and change is not welcome, things are done the way they were hundreds of years ago. People also don’t tend to voice their opinions like we do here in the States. Anyone who speaks out usually isn’t given much attention and they fall back into their place and a majority of the population is fine with that. Everyone is fine with fitting in and personal opinion is not voiced out loud most of the time. There are multiple practices that are part of the Japanese culture that are not found in American culture. A few of these are bowing instead of handshake when you address someone, slurping or loud noises are viewed as polite and that you’re enjoying your food, and tipping is viewed as an insult. These practices are somewhat opposite in the American culture, we are much more different than some people tend to realize.
First of all, it is a chance for a company to expand its current market. Because of the huge population around the world, advertising products and services overseas can create and attract a larger size of consumers as well as increasing profits (Bradley, n.d.). Another benefit brought by international marketing is that firms can minimize operating costs (Bradley, n.d.). For example, cheaper costs such as labor cost and advertising cost, or even tax in some host countries are bargains for companies aiming to target the international market. As a result, costs are minimized while profits are maximized as much as possible. Also, having access to the proper human resources in foreign countries such as human skills and knowledge can be a motivation for companies to go global. Last but not least, international marketing can help build up a brand’s reputation (Bradley, n.d.). It is proven that a brand’s products available in multiple markets are perceived as of higher quality and service compared to those sold locally (Bradley, n.d.). For instance, cars and mobiles such as Toyota, Honda, or Apple, and Samsung which are globally available are more likely to attract more consumers than local products. Thanks to the development of advanced technology that enables the connection between companies and consumers, and the access to resources such as human and natural resources, the pattern of doing business overseas, especially marketing, will undoubtedly continue to boost in the near future. Besides, marketing internationally can improve the business’s efficiency and help discover and exploit opportunities to grow (Bradley, n.d.). Since McDonald’s management has recognized the opportunities of international marketing, it has expanded its business to 36,258 restaurants in 119 countries and employed 420,000 people (Neate, 2015). Such huge
Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care. One of those requirements would be to thoroughly research the cultural environment in which you wish to launch your product no matter how popular and indispensable you believe it might be. In the past, many national giants have hit the wall when introducing a foreign market or launching a new marketing campaign because of the cultural gap they encountered on the other side of their borders. Another way of preventing a flop on an international market is to carefully study the economical past of this country, which might differ quite a bit from the one the company flourished in. In addition to the previous precautions, it Would be advise to make sure that your product will blend seamlessly within the spending habits of the consumers. Overall, meticulous market studies and patience often constitute the way to success on a foreign soil.
A benefit of Japanese having a grantor FDI includes bring competition to Japan were local ones may not already be experiencing it. This could source new management ideas, business policies, and technology; all of which could boost productivity. It was the opportunity to help restructure Japan’s retail sector that would boost productivity, gaining market share, and profiting from the process. This attracted the worlds largest retailer to
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In order to stay competitive in the global market, Multinational corporations have continued to expand into newer markets. Being responsible and maintaining good relationships with host countries is vital to their success. Multinational Corporations have increased over the years but there are plenty of hurdles to overcome in terms of properly executing their strategy. Political relations between countries where MNCs operate should be stable to avoid problems with production, design and employee turnover. What’s important to keep in mind is that a Multinational corporation cannot be successful if they try to implement new ideas or products without proper research in the market where their products are being made. If a MRC in the U.S is doing business in Japan but tries to create a new technological product for Japan it would be wise to consult with engineers in Japan who are familiar with local trends and knowledge of the market before going ahead with production. That should be considered common sense but there are instances where products are pushed to a market with very little success because the proper research was not done. MRCs need to be more innovative so that they remain competitive in an always-changing global market.