Case Study: Global Marketing Strategy of Apple iPhone in Japan

This case study examines Apple's iPhone launch in Japan, focusing on the challenges and strategic decisions made in the market. The analysis begins with an introduction to the situation, including the role of Eric Miller and the launch of the iPhone 3GS. It then delves into the Japanese market situation, highlighting the competitive landscape and economic factors. The study explores Apple's target market and profit structure, identifying issues such as consumer behavior, pricing, and missing features like emojis. The role of Softbank Corporation is discussed, along with managerial recommendations for companies entering the Japanese market, such as adapting global strategies to local contexts and understanding the competition. The study concludes by suggesting that Japanese consumers were not ready to embrace change. The case study emphasizes strategic recommendations for global companies looking to enter new markets. References are included to support the analysis.

Global Marketing
Strategy and
Planning
Apple iPhone in Japan
(Student Details:)

Outline
 Introduction to the case
 Current market situation
 The Partnership with Softbank
 Reasons for failure
 Marketing Mix
 Alternative strategies
 Identification of The problem
 Managerial Recommendations
 Summary

Introduction
 Steve Jobs sent senior vice president to
Japan
 The launch of iPhone 3GS was done in
Japan by Eric Miller
 Eric researched on Japanese market
conditions
 Eric found a need of sorting out the
broken link amid iPhone and Japanese
end users

The Market Situation
 The Japanese market found difficult
 There are so many foreign companies
which were failed to enter Japanese market
 Economy of the Japan is stagnating since
initial 90’s
 Japan is potential market for iPhone sale
 3G network within Apple’s iPhone is a very
common feature in the nation of Japan
 Almost all Japanese phones utilise 3G for
accessing internet services

Profit Structure and Target
Market
 Target Market:
 Apple aimed at those who bought iPod
as audio probes while using
‘technophobes’
 Apple aimed at mainstream market but
not smartphone market
 Profit Structure:
 The investors of the Apple Inc have
taken huge bets over the iPhone.

The problems identified
 Factors affecting Japanese consumer
behaviours and their purchase decisions
were challenging for iPhone launch
 The touch screen of the iPhone in Japan
was not accepted by the clients working
in there
 Pricing plans: iPhone’s monthly plan
started at about $60, hence it was too
high as compared to its competitors.

The problems identified contd.
 The ‘emoji’ was a big lack in iPhone in Japan
as it is one of the most important features in
Japanese phones that makes their messages
and e-mails attractive
 As the Cell phones are more of a fashion
accessory in the Japan and iPhone was so
simple
 Debit cards and train passes, a phenomenon
which was lacking in Apple’s iPhone.

Lessons learned by the Apple
Inc.
 Apple Inc learned how mobile phones’
consumers within
Japanese market
• perceive
• feel
• reason
• select
• think

Softbank Corporation
 During mid 2008, around 107.5 million subscribers
were there in Japan including:
 Softbank 19.2 %
 Au KDDI 28.7 %
 NTT DoCoMo 50.8 %
 Thus, mobile phone
carriers require to
Come up with their
new innovative strategies.
Here, Softbank Corp. was
Japanese
Telecommunication and
Media Corporation.

Important Managerial
Recommendations
 A company should always think
following questions before entering into
Japanese market:
 Can I apply my global strategy or should
I develop a local strategy?
 Do I market my products correctly to my
(Japanese) customers?
 What's the (Japanese) competition
doing? Can I keep up?

Summary
 The chosen case study analysis is
suggesting that Japanese people are not
ready to embrace change. In the context of
Japan, issues in iPhone 3GS have been
identified with the help of given case study
on ‘iPhone in Japan’.
 In whole, this presentation has provided
strategic recommendation for the
management of the global companies those
intent to enter into new markets.

References
References
Fast Comany. (2011, 02 11). Steve Jobs, Apple, and the importance of company culture.
Retrieved from Fast Comany: https://www.fastcompany.com/1792485/steve-jobs-
apple-and-importance-company-culture
Jun, S., & Sung Park, S. (2013). Examining technological innovation of Apple using patent
analysis. Industrial Managment & Data Systems, 113(6), 890-907.
Panmore Institute. (2018, 09 11). Apple Inc.’s Organizational Culture & Its Characteristics
(An Analysis). Retrieved from Panmore Institute: http://panmore.com/apple-inc-
organizational-culture-features-implications
Pontiskoski, E., & Asakawa, K. (2009). Overcoming barriers to open innovation at Apple,
Nintendo and Nokia. World Academy of Science, Engineering and Technology, 53,
372-377.
Safian, R. (2018, 02 21). Why Apple is the World's most innovative Comany. Retrieved from
Fast Company: https://www.fastcompany.com/40525409/why-apple-is-the-worlds-
most-innovative-company
Thomke, S., & Feinberg, B. (2012). Design thinking and innovation at Apple. Cambridge:
Prseident and Fellows of Harvard College.
Umoh, R. (2017, 09 13). How Apple's success can be traced to Steve Jobs. Retrieved from
CNBC: https://www.cnbc.com/2017/09/13/how-apples-success-can-be-traced-to-
steve-jobs.html