Market Expansion Strategy Japan
Looking at the market potential of Japan, it is very tempting to look at the total market potential and then compare it to your market shares in other countries. Most of the time finding out that your market share in Japan is comparably smaller when compared to your other markets. Generally, this leads to the assumption that there is still plenty of room for growth.
Japan does not automatically work this way. The assumption could be even misleading.
We recommend having a deeper look at the market to understand if and how it would be possible to increase the market share.
The identification of hidden market forces is crucial. How much growth could we still achieve organically? When would we need to look at different options, like distribution partnerships, JV or M&A, to drive future growth?
We highly recommend our Market Expansion Strategic Approach, if
You are not satisfied with your current market share.
You look at your market share vs. the total potential and want to understand how you could increase it.
You try to increase your market share, but your potential customers hesitate.
Your growth hit the wall at a certain point in your journey in Japan.
Note:
The key to drive your sales expansion in Japan is to understand the hidden market forces.
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Our offer:
We guide you to discover the hidden market forces for better understanding the supplier relationships with your customers.
We support you to identify potential scenarios for future growth, ready for immediate implementation and execution.
We bring in our knowledge and experience of 30+ years successfully working in Japan.
We offer monthly Market Expansion support and quarterly review meetings during implementation and execution. Monthly, quarterly, yearly plans are available.
The Market Expansion Approach
Focus on what You can influence
Understanding The Hidden Market Forces
In brief: History plays an important part. Japan practically remained closed for centuries, about 220 years, also with some slight exceptions. After the forced opening in 1853 and the commercial treaty in 1858, the "hunger" for trade and later for new technology was immense. The rivalry between similarly structured industry groups created the Zaibatsu (before 1945) and later the Keiretsu (after 1945) system to make sure that company interests, finance, and accumulated know-how remained protected within the "group" companies. The automotive and industrial Keiretsu systems mostly remained until the turn of the century in 2000, before they began to loosen, mainly due to the financial hardships of the parent companies.
The Keiretsu system may not exist in such closely linked financial cross-shareholdings as it used to be. However, there are plenty of other means to remain strongly connected.
Understanding these hidden market forces is the key to driving your expansion strategy in Japan.
Customers (Your target)
It is necessary to understand how your channel to market (e.g., distributors) and your actual target OEM customers work with their existing suppliers. (your competitors).
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Supplier (Existing, Your competitors)
Understanding history and applying the knowledge to the present will make the difference between success and failure.
The Hidden Market Forces Playbook
The hidden market forces playbook is the direct result of your study and how to execute your market expansion strategy.
The first level is to understand the relationship of your target customers and their existing suppliers (your competitors), which is very different in Japan from the relationship you know from your American or European home market.
The second level is to understand in which way they work with each other. There are different depth levels. You need to understand the depth levels of how your target customers and their existing suppliers (your competitors) work with each other.
The third level is to verify your knowledge and then to apply this knowledge to your market expansion execution strategy that you create impact achieving further market growth.
Channel to Market
There is no easy decision or simple solution. It all depends on how you originally started in Japan and the initial trust you built with your customers.
Customer "Direct & Indirect"
The decision of how to approach your target customers, either direct or indirect, should come out of your study from the hidden market forces.
Strategic Partner, JV, M&A
These are highly complex topics in Japan. Understanding the hidden market forces will help you to make the proper steps in that direction.
Packages, Time frames, and Pricing:
The Market Expansion pricing packages depending on the scope, volume, complexity, and time frame.
The MARKET EXPANSION Package
The focus of The MARKET EXPANSION Package is to understand your customer and competitor relationship. You will get clarity that you know how to adjust your market strategy for a potential increase in your market share. Creating a positive impact on market growth is the key. The time frame is 3-4 months.
The EXPANSION SUPPORT Package
The EXPANSION SUPPORT Package is an option to get continuous guidance and support every month, whenever you need it. Please kindly choose from our monthly or yearly plans.
The EXPANSION QUARTERLY REVIEW Package
The EXPANSION QUARTERLY REVIEW Package is perfect if you feel confident to execute every month but prefer to have qualified guidance when it comes down to the Quarterly Review Meetings. It is a great option to get professional support every quarter. Please kindly choose from our quarterly or yearly plans.
Are you ready to drive your market expansion in Japan?
Let us talk and discuss your requirements.