Opportunities and Risk Analysis for IBM in Japan

This report analyzes the opportunities and risk analysis for IBM in Japan, including market selection, environmental analysis, demand analysis, and integrated communication strategy.

Group presentation

Contents
INTRODUCTION...........................................................................................................................3
Task..................................................................................................................................................3
REFERENCES................................................................................................................................7

INTRODUCTION
International market selections are important stage need to be followed by company after the
preliminary analysis taking step forward towards internationalization of chosen market the firm
needed to focus on. IBM is the American multinational technology company headquarter in New
York established in year 1911. In this report, there will be analysis of availed opportunities and
risk analysis present for IBM in Japan. There will be proposed segmentations strategy based on
social- cultural framework and go demographic analysis along with proposed integrated
communication strategy for IBM.
Task
IMS is the primary concern to make decision regarding international expansion and commitment
of large resources for its future success (Stuecheli and et.al., 2018.). IMS is stage wise process
need by firm to allocate proper time and efforts to the agreed criteria for making selection of
suitable market for later development. IBM was founded as computing tabulation recording
company (CTR) and eater renamed as “International business machines corporation”. The world
biggest technology second most valuable global brand for manufacturing and selling computer
software along with offering infrastructure services, hosting services and consulting services in
areas ranging from mainframe computers to nanotechnology.
Identifying foreign market
Identification and selection of market is the first stage in international marketing expansions to
take decision over market in which product are be sold in perfect manner. Currently IBM is
working upon its strategy to the higher value business segments along with increasing set
capabilities through strategic acquisition and investments (Shin, Noh and Lee, 2018). Japan is
known for manufacturing product hub for electronic and automobile sectors along with
technological advancement. the tech industry is Japan is rapidly growing boosting their market
size of 6.41 trillion yen (approx. 60 billion USD). Japan is the country properly focused on the
prominent vehicle technology, consumer electronics, robotics, medical devices, space
exploration and the film industry.
Environment analysis
the environmental analysis has aim to address political, economic, social and technological
factor of Japan effecting IBM.
Political
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The country has very close relationship with united states looking the part and parcel of japan
foreign and security policy. Japan is building a strong level of efforts to maintain strong relations
with world power such as India, the UK, France, and Australia. on the other hand , firm
have strict trade regulations rules.
Economic
Country is 2 nd largest economy in Asia and 3rd largest in world with GDP of 5.4 trillion in year
2019. The country has expected growth of the 2.3% in 2019. The firm is major level of export of
technology products. In addition, The firm have planned to reduce tax by 20% for companies
and raise wages for boosting domestic capital spending.
social factor
The ageing and increase population are major concern to be look into japan. Currently country
have 126.4 million population which is expected to fall below than 100 million in 2048 and up to
87 million by 2060 (Katsikeas, Leonidou and Zeriti, 2019). On the other hand, population
have major preference to Japanese companies over foreign over which is major risk for
firm.
Technology
japan is pushing technological innovations and creativity. There is major concern to robotic
development turning out to be major opportunities for IBM to expand. the country is
having ton of disposal income to have investment in new busines expansions
Distribution channels
Companies working in Japan have the lot of pressure in the supply chain due to peak and trough
demand have the occurrence in this sector is prevailed. The distribution channels have to look
into the cutting-edge technology to cope with massive fluctuations in demand and react in
situation in quick manner in possible near real time. This is clear risk for companies to look
upon (Morgan, Feng and Whitler, 2018). The company have to make huge investments in
high tech technologies for improving customer experiences as end user, spoilers for partner
business and other part of supply chain.
Demand analysis
In the case of IBM in japan, on the demand strategy is much broader than utility computing. The
firm have virtual offering from software, to hardware, and services. In many ways, On Demand
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represents the next phase of IBM's umbrella E-Business strategy which integrates many of its
offerings.
Risk
 The risk in Japan expansion is looking into governance and compliance
 The firm have to look into financial regulation, intelligently managing risk capitals and
credit risk in japan.
 As japan is the technology proven country, it is important for IBM look regarding issue
of imitation of products.
 The firm have to face severe risk competitions with degree of differentiation and
aggressiveness of firm in information technology.
 Cloud platform products expose the firm and its clientele to potential cyber attacks
IBM is in varied line of business amongst leaders in the enterprise solution business segment.
Geographic segmentation has classification consumer according to their location which have
inclusion of nations, state, region, cities and locality. Japan is the place which have major level
of competitiveness in term of technology. But this varied from city to city. Dhankai is generation
will be suitable market for IBM as it has big populations. It is said that they are so smart-aleck
since the former generation has small population.
In Japan, many companies accept only freshmen or job seekers with the same industry's
background. As the population of Dhankai are more worried about unemployment, land job and
less competitive.
Socio cultural segmentation in japan for IBM will consisted for juniors are very competitiveness
in the education system from when they were children, due to the big volume of population’ the
student has the need to be properly targeted as with maintaining the social class (Cateora and
et.al., 2020). The population is more concerned o have high technology daily life style.
Integrated communication strategy
Integrated marketing communication employee several channels to covey the campaign
message. this will increase the effectiveness used to converts trigger into prospectus and
prospectus to customer. The IMC of IBM in Japan is made up of different communication
channels cogs such as social media TV newspaper. There IMC strategy will look communication
channels generating the clear picture to audiences of brand image and messaging related to them.
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IBM campaign will be there is japan across the 2000 outdoor location with billboards, bus, and
digital screen ads; these are all being supported by print, digital, experiential, and point of sale
activity. there will be the differ social media advertisements offering various level of discounts
and offers to people of japan. Social media advertisement will have inclusion of Facebook,
Instagram, YouTube and twitter. The distribution channels have to look into the cutting-edge
technology to cope with massive fluctuations in demand and react in situation in quick manner in
possible near real time
Tools for the IMC will be helpful in summarising the marketing, advertising, and sales tools that
they will use during different campaigns.
Some promotional tools marketers use includes new media options
 Search Engine Optimization (SEO)
 Banner Advertisements
 Webinars
 Blogs.
Some traditional media tools marketers use includes-
 Newspapers,
 Billboards,
 Magazines.
Hence, this connection will have strong relationship between brand and consumer. Regardless,
the message Marketers put out through new media and traditional media channels needs to stay
consistent. The successful IMC will have proper mixture of different sales promotion techniques
creating significant brand loyalty along with helping out in differentiation the product form
different competitors.
Conclusion
From the above file, It can be conclude as Japan is known for manufacturing product hub for
electronic and automobile sectors along with technological advancement. Japan is building a
strong level of efforts to maintain strong relations with world power Population with preference
to Japanese companies over foreign over which is major risk for firm. The company need to
make investments in high tech technologies.
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REFERENCES
Books and Journals
Stuecheli, J and et.al., 2018. IBM POWER9 opens up a new era of acceleration enablement:
OpenCAPI. IBM Journal of Research and Development, 62(4/5), pp.8-1.
Shin, M.M., Noh, E.J. and Lee, J., 2018. Study abroad programs as a service convergence: an
international marketing approach. Service Business, 12(2), pp.253-275.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era. International Marketing Review.
Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing, 26(1), pp.61-95.
Cateora, P.R and et.al., 2020. International marketing. McGraw-Hill Education.
Online
Japan Is A Different IBM i Market, But The Loyalty Is The Same.2018.[ONLINE]. Available
through< https://www.itjungle.com/2018/11/26/japan-is-a-different-ibm-i-market-but-the-
loyalty-is-the-same/>
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