Japanese Health And Beauty Market example essay topic
363 words
1, INTRODUCTION: Now, with faster communication, transportation, and financial flows, the world is rapidly shrinking, products developed in one country and are finding ardently acceptance at another country several thousand miles away. The numbers of reasons are drawing more and more multinational corporations into more international area. Because of the competing advantages and risks, some of them won, but some of them lose. Boots Co. plc, the UK retailer of health and beauty products, estimate the Japanese health and beauty market to be worth! ^e 17 bn, four times the size of the market in the UK. So, it was a joint venture with Mitsubishi Corporation and plan to push the Boots retail brand into the Japan in 1998. Unfortunately, Boots announced it was closing its four stores- three in Tokyo and one in Yokohama- after three years. A Boots spokesman said: ! ^0 We have learned a great deal from this, Japanese consumers love the Boots brand, but putting it in the context of UK-type health and beauty stores is not the way to proceed.! +/- Not only Boots, US hamburger chain Burger King also failed to catching the fancy of local consumers before making its exit from Japan. This assignment will focuses on two main sections as below, also detail and critically analyze the main points which should be considered when making a market entry strategy: Some of the economic factors must consider include: income levels and income distribution, levels of sales, tax situation, infrastructure, exchange rate stability. The Coca-Cola Company said that its third-quarter profit increased 12 percent, largely because of strong sales in some of its most important international markets like Britain and Spain.!
^0 A lower tax rate and favorable currency exchange rates also helped to lift earnings! +/-, the company said. (The New York Times, 17, Oct. 2003). Anther example: the construction giant, Bechtel Corporation before into a new market, the company starts with a detailed strategic market analysis. A management team does a cost-benefit analysis that factors in the infrastructure, regulatory and trade barriers, and the tax situation (both corporation and individual)..
