How to Win Emerging Market (Harvard Business Review)

1122 Words5 Pages
Introduction Japan has succeeded to enter the market in developed countries such as the United State and European countries. Nevertheless, Japan existence is not happening in emerging markets. Shigeki Ichii, Susumu Hatori, and David Michael in accordance to that reality, wrote an article “How to Win in Emerging Market: Lessons from Japan” in Harvard Business Review volume 90 issue 5 on page 126-130, that was published in May 2012. The main aim of this article is depicting the challenges that should be faced to ramp up their sales because in comparison to other multinational companies, Japanese multinationals tend to have a slower sales growth. Those challenges are the distaste for middle and low-end segment, aversion to mergers and…show more content…
Another point is that they give authority to local managers in important decision making, which serve customers better. Based on these facts, it is actually not impossible for Japanese companies to be successful in the emerging market. Additionally, it is also argument to overcome cultural distance theory that ‘as the cultural distance increase, the level of investment decreases, the type of investment lower, and the investing firm will not want to cooperate with a local partner’. Strengths and Weaknesses In our opinion, this article has several strengths. First, the author stated the four challenges to enter emerging market as promised in the introduction. Moreover, they give brief examples of each challenge that makes us understand better on the circumstances. They also reviewed two successful Japanese Companies in entering emerging markets with consistently referring to the four challenges explained previously. On the other hand, there are several weaknesses. First is the authors did not explain the reasons of Japanese companies aversion to merger and acquisition. Second, they did not give example from other countries, which mean they did not give evidence to readers whether by overcoming those challenges could be applicable to other countries. In relation to international business concept, the company should
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