MBA Iris 2013
Business with India
Zippy, Hanna, Dima, Avi,
January 26, 2013
Table of Contents
1.1What is at the stake3
1.2Competition is about killing your competition4
1.3The killer instincts 5
2Building Strong Brand via Advertizing, Promotion and Public Relationships7 3Market Expansion9
3.1New Opportunities Created enables frontiers expansion.9 4Summary10
What is at the stake
Some fact about India:
* India population count ~1.2 Billion people.
* 20% of the population lives in urban areas, 80% lives in rural areas. * Upper class in less than 5% of the population, mid-class is ~ 15%. * India economy grows ~ 8% each year in the last 10 years. *
What is at the stake for The Japanese Brands (Sony, Panasonic, NEC) Two American giant corporations, Google & Apple dominate one of the biggest and fastest growing markets with a junction with Korean, Taiwanese and Chinese developers and producer - this leave Japanese out of the game. iPad & Nexus control 90% of the Japanese market which is well known for being loyal to Japanese products.
Japanese brands desire to take a bite in this huge market where almost every child and adult is going to own Tablet in the developed countries and the same for the middle-class in the developing countries. It became clear to the Japanese brands that losing this market will not only result in stagnation, but might hurt their brands position in the long term internally but also externally to Japan. Japanese consumer electronics brands want to close the gaps Vs. their competition as well create a clear competitive advantage in their products. Competition is about killing your competition
How competing with a giant as Apple Corp. with a superior customer experience? How competing with a giant as Samsung or Asus which is dominating the tablets market? The starting point is creating a clear competitive advantage recognized by the customer(s).
Sony is among the Worldwide Top 20 Semiconductor Sales Leaders and third-largest television manufacturer in the world, after Samsung Electronics and LG Electronics. Sony is ranked 87th on the 2012 list of Fortune Global 500. Panasonic is the world's fifth-largest television manufacturer and is among the world's 20 largest semiconductor vendors. NEC Semiconductors business unit was one of the worldwide top 20 semiconductor sales leaders and is a member of the Sumitomo Group.
Japan and the US had history of clashes, rivalry, and battles which eventually ended with an absolute defeat of Japan by the US. Since the atomic attack in Hiroshima and Nagasaki, Japan became one of the strongest economies in the world and dominate the US market in the Automobiles and Consumer electronics industries. Japan succeeded to transform their military competencies into economic strength and they were able to transform the military achievements into economic one. Losing their own market to US Corp. is a scenario they want to eliminate.
Japan has 127 Million people.
Currently one out of 9 people own a Tablet.
The estimation is that one out of 3 people will own a Tablet in the upcoming 5 years. Each Tablet maker can develop applications and services market internally in Japan. (Movies, Songs, )
Joining To defeat the iPad:
It is clear that in order to defeat such a giant as iPad, it takes no less than gigantic force. Sony, Panasonic and NEC realized that in order to succeed in this mission, they need to join forces. iPad hold ~90% of the Japanese market, to win this market it takes a combined effort.
Sony and Panasonic had joined ventures in the LEDs/LCDs, Sony and NEC had joined ventures in the Batteries industry, Panasonic and NEC have developed chips together etc. Those corporations are familiar to each other and collaborate from time to time. A...