Case Study: Market Expansion Strategy

JME’s client was a manufacturer of automatic identification equipment, software and supplies that had had an office in Japan for several years. The office had not had much success in cracking the Japanese market. Local staff insisted that the company needed to produce products especially for the Japan market in order to succeed. The head office was reluctant to invest in the development and production of products with non-standard requirements for a market with low sales and many competitors. JME was asked to review the company’s business strategy and propose new directions to senior management.

JME interviewed local and headquarters staff, distributors and partners, customers, competitors and trade show attendees. It visited customers and potential partners with the local sales force. JME analyzed the technology and business trends in key sections of the client’s Japan market and produced a lengthy report and a day-long strategy presentation.

As a result, the client changed its strategy from one of competing through an overly expensive product in a crowded market to one of better service for Japanese customers that used client’s products in their manufacturing and distribution operations world-wide. This strategy succeeded so well that JME was asked to assist in drafting the job descriptions for additional Japanese staff, and in locating appropriate people. JME’s licensed real estate staff also found the client a modern, spacious new office and warehouse facility at a locally reasonable price a short distance from major customer facilities. Due to the increased volume of business the client was generating, it was approached by one of the Japanese distributors that JME had suggested and ultimately ended up with excellent distribution in Japan. The client reports successful sales in Japan without any products developed specially for the Japan market.