Internationnal strategy project

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International strategy

Then, we must identify our international strategy, in our case we can we are a part of a multi domestic strategy because our strategy involves a dispersion overseas of values activities including manufacturing and product development. An international marketing approach to focus advertising and commercial efforts on the needs of the Japanese market rather than taking a more universal or global approach. We will seek to understand the culture of the Japanese market and tailor our entry into this market. With this approach, a great deal of effort is made to adapt advertising and presentation to appeal to local sensibilities, rather than using a mass market approach. Also, is important to better understand and communicate the needs of customers, it also can act as an advantage. You see, when managers are local, they live among the customers in that country. This means that they shop and demand the same products as the customers they are targeting. This makes a stronger connection between the company and its customers.

International market entry

For the mode of international market entry, we will start by sell our product to “Base Camp” to exploit our mark in Japan, so it will be simple export and quickly we will invest and it will become a wholly owned subsidiary with the acquisition of the outdoor shop (1-2 year(s)). It will reduce the competition and the most important is that we will be the first to sell this kind of bags but the competition is still present for the simple back-pack, we must promote our product and do a suitable job about marketing. Once the sale is launched it can be hard for the others to compete against us.

Implantation choice

Our implantation choice, B-space is the leader of this kind of product in France for 2 years now. We are the first-mover to Japan to attract the considerable number of travellers. Like that we can charge the customers with considerable prices, but not so expensive to be sure that it’s possible for customers to buy it.

Competitors will arrive lately but with imitation and without the same quality, also other innovation, that’s why we need to innovate every time and promote often to become the leader.

SWOT

Strengths:

- High tech bag

- Product’s Quality (ingenious innovative approach to frame configuration and material selection that reduces weight and increase storage)

- Intelligent and practical design

- Good warranty (2years)

kWeaknesses:

- High price compared to competition

- Lack of experience as this will be the first time to conquer the market in another country

- Unknown mark in Japan

Opportunities:

- Low flight ticket with a lower weight of bag (people travel more)

- Export product to other countries

- Highest level of sales luggage/backpack every year[pic 23][pic 24]

- Substantial number of traveller every year

- Substantial number of Japanese who studying abroad

Threats:

- Future competition

How does Japanese culture shape strategy?

Japan has its unique business traditions and ways of doing business. Therefore, prior knowledge of local culture, demand, consumer behavior and pricing strategy is critical to successful international business ventures. Perhaps more than any other market in the world, the Japanese market demands quality over price.

Overseas travels from Japan

The Japan National Tourism Organization announced that the estimated number of Japanese people who travelled in February 2017: 1 488 000 people +11.8% compared to 2016.

Narita International Airport reported that the number of Japanese departures in January 2017 was 496,802, +1.9% increase compared to January 2016.

The number of Japanese departures to the international in January 2017 from:

- Fukuoka Airport (64,279, +3.6%),

- Haneda Airport (339,081 +5.8%)

- Shinchitose Airport (13,080, +4.9%) and

- Naha Airport (5,605, +5.1%) continued to increase in January while Kansai International Airport (240,043, -1.6%),

- Central Japan International Airport (103,021, -7.3%)

- Port of Hakata (3,497, -2.7%)

[pic 25]

Strategy capabilities: PESTEL

Political factors:The Emperor is the head of the state but he has the minimal powers and there is constitutional supremacy in the country. The parliament is elected by the people in the general election and prime minister is elected from the parliament.Japan is a member state of the United Nations and a non-permanent member of the Security Council. Now it is seeking permanent membership.

As an economic power, Japan is a member of the G8 and Asia-Pacific Economic Cooperation (APEC), and has developed relations with ASEAN as a member of "ASEAN plus three" and the East Asia Summit.

It is a major donor in international aid and development efforts, donating 0.19% of its Gross National Income in 2004.

Economics factors:The economy of Japan is the third largest in the world after the United States and the People's Republic of China but ahead of Germany at 4th.Some of the main aspects of its economy are given below:

The Japanese economy is dominated by the service sector, which contributed approximately 56.5% to the total GDP in 2016. Real estate and construction together contributes 22.9% to the service sector. The government is implementing structural reforms in aggressive monetary policy, flexible fiscal policy, and growth strategy under Abenomics which will improve the business climate of the country. The government has increased its spending on infrastructure projects and