Japan to apple's iphone no thanks!

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..!