Swot Analysis Baskin Robbins

One of Baskin-Robbins’ largest divisions is in Japan according to their 2014 annual report. Baskin Robbins’ key markets a mainly in Asia and the Middle East region. In Japan, there are 1,170 restaurants that has been last accounted for in 2014. The restaurants in Japan has a total sales report of 20%. Baskin-Robbins does business in Japan through a 4.3% ownership in a Baskin Robbins brand joint venture. Before describing the benefits of having a comparative advantage in Japan, understanding the meaning can help explain it in further detail. Comparative advantage is what is known as the “foundation concept of international trade”, it refers to the superior features and unique benefits it has in global competition.

Japan was one of the first

international country that Baskin- Robbins’ opened in, and it helped build their global presence. About 37 years ago it started and continued to increase in ice cream shops developing. Japan has a great relationship with Baskin Robbins and continues to grow till this day. Baskin Robbins franchises in Japan had great leadership initiatives and the owners had innovative ideas during training and development which helped the store locations progress. Another comparative advantage that Japan has is having a superior base of knowledge, this country is very talented, so doing business with Japan will be a benefit to their sales. Not only does knowing the comparative advantage help with the dynamics of the corporation, it is also the competitive advantage.
Competitive advantage is defined as the foundation concept that explains how individual firms gain and maintain distinctive competencies, that are relative to competitors, that can lead to the best performance. In regards to the definition of competitive advantage, some things that Baskin Robbins does in Japan that puts them ahead of other companies are, having many different flavors, the worldwide ones and flavors common in Japan. For example, a Japanese flavor called “Mont Blanc & Crème Brulee” is a marron flavor of ice-cream that consist of burnt caramel ribbons containing ice-cream custard. This is not common in the United States but is a common flavor in Japan. They do not only just depend on the local flavors, but Baskin Robbins uses the method of local responsiveness which has helped them be successful for so many years.
When we mention the term local responsiveness, this means that the company Baskin Robbins realizes that they have to adapt to the local culture depending on what country they are in. In this moment we are speaking about Japan, some cultural aspects that Baskin Robbins in Japan has are incorporating their holidays that they observe. For example, culture day is observed in Japan in November, Baskin Robbins does different deals or have coupons for their customer base during month. Baskin Robbins tries to be apart of the local area so they can grow their business. Even though Baskin Robbins first started in America, they knew they had to expand to achieve maximum profit. The international market is so big that they have many options to get exposure in a country.
With having a comparative and competitive advantage in Japan, Baskin Robbins can attain a competitive edge within the marketplace.

With the knowledge base of the Japanese managers, which helps the business continue to grow and the local responsiveness that Baskin Robbins incorporates in their entry to market process it proves that Baskin Robbins has a competitive edge in their market space. Another factor that shows that Baskin Robbins has a competitive edge is because they are strategic thinkers. When they first entered Japan 37 years ago they merged with a local company called “Fujiya” which made it easier to enter the Japanese market base. Baskin Robbins thought of different ways to appeal to the customer base and kept in mind that in different countries there are many different techniques. In Japan, Baskin Robbins also has to compete with the local companies so they have to make sure they capture the essence of

Japan.
2. Evaluate this MNE and establish whether are they enjoying specific benefits from multinational and/or regional Integration treaties (NAFTA, ASEAN, APEC etc.) (1-2 pages)
Zakiya Martin
Many countries around the world have a multinational or regional treaty which can come to a benefit for companies like Baskin Robbins. In Japan, they have the Asia Pacific Economic Cooperation (APEC) and this organization promotes free trade through out the Asia-Pacific area. There are 21 countries apart of this treaty which varies from Japan to even the United States. This treaty has helped companies like Baskin Robbins to afford to open international locations. APEC made business transactions 6% cheaper. Another benefit for Baskin Robbins was the idea of a joint venture which they did in Japan. They were able to gain local acceptance and became able to gain the benefit of doing business within Japan.
Without these type of treaties in place it makes doing business in certain countries more expensive than they can be.

The Asia Pacific Economic Cooperation made it more affordable for Baskin Robbins to continue business in Japan. Since the United States is apart of this treaty it makes it a lot simpler for United States companies to do business in foreign countries. Since the treaty incorporates free trade benefits and the past business done with the United States, Baskin Robbins is able to conduct business. The culture of Baskin Robbins as stated before is following the culture of the country they are in, so they do not take away from the tradition in the country they start doing business in. Regional or multinational treaties has its perks for the countries that are within the treaty. If Japan and the United States were not apart of this treaty the foundation to start and enter Japan would be expensive and a longer process than it is currently. Having the benefit of free trade helps reduce the cost for United States based companies, in this case Baskin

Robbins.