Strategic International Trade Operations

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Assignment 2

Expansion strategies applying into Japanese LNG market

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Assignment 2

Expansion strategies applying into Japanese LNG market

BEO3517 Strategic International Trade Practice
BEO3517 Strategic International Trade Practice

Table of Contents
Introduction1
The level of economic activity and demographics of Japan which is relevant to the expansion2
Demographics of Japan2
Economy of Japan3
A review of your company’s export performance and strategies5
A description of your company’s operations relevant to this export expansion6
Productivity improvements to be gained by this export market expansion project7
Expansion Strategy8
Introduction8
Joint-venture/Agency/Sole proprietary9
Production/service9
Land/Buildings10
Machinery/Vehicles10
Labor11
Materials11
Shipping/Warehousing/Air-travel11
Marketing12
Pricing12
Promotion13
FACILITY LOCATION ISSUES13
An explanation of how three quantitative techniques learned in this unit can be applied in this export market expansion project14
Country Risk Analysis14
Quality Management15
Top Operating Level17
Conclusion18
Reference18

Introduction
Japan Australia LNG (MIMI) Pty Ltd is one of the biggest LNG (liquefied natural gas) producer in Australia, which holds a one-sixth equity interest in North West Shelf (NWS) Project, on the North West Shelf offshore of Western Australia and enjoys a big market share in Japan. The company is owned 50 – 50 between Mitsubishi Corporation and Mitsui & Co., Ltd. In the report, we are going to look at the background of Japan and the previous performance of the company. The report will illustrate our expansion strategies in Japan. At last, three strategies that we learnt in this unit will be utilized to maximize our profits and be more competitive.

The level of economic activity and demographics of Japan which is relevant to the expansion Demographics of Japan
Japan is island base in East Asia. Japan is located in the Pacific Ocean, stretching from Sea of Okhotsk in the north to the East China Sea and Taiwan in the south. With the population estimated around 127.3 to 127.4 million, with the majority (80%) of the population in Japan lives on the country’s largest island called Honshu. Japan is composed of 98.5% who are of Japanese ethnic and the other 1.5% of the population is consist of Koreans, Chinese, Brazilians, Filipinos and Peruvians mostly with Japanese descent in their blood. The overall life expectancy of Japan is the longest of any other country around the world, with the average of 83-84 years old.

Japans population 127,368,088| Japans age structure 0-14 years old: 13.1% 15-64 years old: 64%
65 years old and over: 22.9%|
Japans median age male: 43.2 years
female: 46.7 years total: 44.8 years| Japans population growth rate-0.077%| Japans birth rate8.39 births/1,000 population| Japans death rate9.15 deaths/1,000 population|

Economy of Japan
Japan industrialised in free marketing economy and is the third largest in the world economy. With this the economy of Japan is highly efficient and competitive in areas linked to international trade. Japan is a major force in the world economy; Japan has the third largest economy in the world, by nominal GDP and is the fourth largest economy by purchasing power by parity. Japan is also the world’s fourth largest exporter and the fourth largest importer.

Japans industry is among the worlds largest and is a very technologically advanced producer of motor vehicles, the electronic equipment’s, machinery’s, steels and metals, ships, chemical, textiles and processed food. On the table below are the stats that show the might of Japan in the economy world, most of all is in the LNG industry:

Japans industrial production growth rate-3.5% (2011)| Japans current Account...
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