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Microsoft in Japan Essay Example

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Microsoft in Japan

Microsoft in Japan. According to the research findings, it can, therefore, be said that entry strategy involves the strategy used to enter the market. It includes the planned methods of delivering and distributing goods to foreign markets. The company used the joint venture method with the existing corporations to enter the market. Given the current low cost of entering the Japanese market, the company made substantial profits in Japan because of the competitive services and products they offered. In addition, the company had a winning attitude and this made it thrive. When it comes to distribution, the company entered distributor contract negotiations. The company agreed to a transfer price negotiation with the distributors.

The foreign company later realized the true value of its product in the Japanese market and found that the distributors were selling at 50% to 200% more than the home market list price. Using distributors was however not effective because they felt that the percentage of actual revenue they were receiving were low compared to markets in other countries. A properly planned entry into the Japanese market will generate revenue, profit, and many advantages. In addition to this, it will enhance a company's valuation because investors believe that a company that is able to succeed in the Japanese market can succeed everywhere. A failed attempt at Japanese market comes with losses in terms of money and credibility as well. Microsoft succeeded in Japan and it has done well in other nations. Early entry into the Japanese market was a profitable business decision for Microsoft. They identified the market as a fast moving one and there acquired a fast-moving status. This way they were able to enter the online auction market and acquired cultural sensitive marketing strategies. Achieving the first-mover status in the Japanese market is always a critical advantage because Japan's business culture ensures that consumers and corporate buyers are unusually loyal to suppliers as well as they get loyalty, quality, and reliability in return. Japanese consumers and companies carry out evaluation and research on products before buying. The Japanese market tendency to supplier loyalty is also due to the thorough purchase evaluations they make. Microsoft in Japan.

References

Hodgson, J. D., Sano, Y., & Graham, J. L. (2008). Doing business with the new Japan: Succeeding in Americas richest international market. Lanham: Rowman & Littlefield Publishers.

International Business Publications, USA. (2012). Japan Business Law Handbook: Strategic Information and Laws. Intl Business Pubns USA.

Ian Melville. (2012). Marketing in Japan.print review

Haak, U. M., & Haak, R. (2008). Market entry in Japan: Theory and management in a turbulent era. Basingstoke: Palgrave Macmillan

Daniel Isenberg. 28/3/2014. Jap@n.Inc. Entering the Japanese market.

Sharon, P.6/14/2011. The Seattle Times. Microsoft: Tech giant enter new markets.

World’s development report.7/22/2010. United Nations conference on Trade and Development.

Organisation for Economic Co-operation and Development. (2008). staying competitive in the global economy: Compendium of studies on global value chains. Paris: OECD.

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preview essay on Microsoft in Japan
  • Pages: 4 (1000 words)
  • Document Type: Term Paper
  • Subject: Management
  • Level: College
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