Business Expansion Report: Analyzing Whisky Market Entry into Japan

This report explores the potential for a UK-based whisky company to expand its business into the Japanese market, the second-largest industrial production market globally. It assesses the Japanese market's attractiveness, considering its evolving landscape and the opportunities for foreign brands. The analysis incorporates a risk assessment matrix, the BERI index (Business Environment Risk Intelligence), and Porter's Five Forces to evaluate the competitive environment, including the threat of new entrants, rivalry among existing competitors, pressure from substitutes, and the bargaining power of buyers and suppliers. The report further discusses entry decisions, emphasizing the need for foreign brands to respect Japanese culture and traditions. It outlines various modes of entry, such as direct exporting, licensing and franchising, joint ventures, strategic acquisition, and foreign direct investment. The report concludes that establishing a whisky business in Japan is beneficial due to less stringent licensing requirements and the potential for diversifying the business and capturing a large market share. The use of improved methodologies for assessing country risk and comparative use of the BERI index aids in business expansion. Porter's five forces helps analyze market standards, customer preferences, competitive rivals, and influence the company’s productivity.

WHISKY TO JAPAN

TABLE OF CONTENTS
 Introduction
 Risk assessment matrix
 BERI Index
 Porter’s five forces
 Entry decision
 Modes for entry
 SMART objectives
 Conclusion
 References

INTRODUCTION
Japan is considered as the second largest industrial production market
in the world. Every foreign country tries to expand their business to
enjoyed undisputed dominance in the share market. The Japanese
market has significantly changed over the last few years. Japan is the
best place to move into the new business market where whisky
company can be expanded.

RISK ASSESSMENT MATRIX
 Very low risk
 Acceptable risk
 Very high risk
 Disastrous

BERI INDEX
BERI index was developed by the Business Environment Risk
Intelligence and has its major components are operations risk
index (ORI), the political risk index (PRI) and the remittance
and repatriation factor which are used in combination for
consistent forecasting of country’s business climate.

PORTER’S FIVE FORCES
 Threat of entry
Intensity of Rivalry Among Existing Competitors
Pressure from Substitute
Bargaining Powers of Buyers
Bargaining Powers of Suppliers

ENTRY DECISION
Japan’s population is very nationalistic and has
tremendous respect for their local culture and ancient
traditions which is why foreign brands need to be
careful while expanding into the country.

MODES OF ENTRY
 Direct Exporting
 Licensing and Franchising
 Joint ventures
 Strategic Acquisition
 Foreign direct Investment

SMART OBJECTIVE
 Specific:
 Measurable
 Actionable
 Relevant
 Time Bound

ANALYSIS MADE
 It is very beneficial for the whisky company of the UK to establish new industry of whisky in
Japan because there is less legal requirement for licensing to trade the business in Japan.
 Japan is one of the biggest producer of whisky brand all over the world. So, the Japan helps them
to diversify their business and cover large market share to attract the customer.
 Japan is the best place for increase supply chain of the product due to availability of large
whisky market which helps the industry to succeed in the competitive market.

CONCLUSION
From this above report, it has been concluded that use of improve methodology for ascertaining the
country risk index and comparative use of BERI index helps to expand the business in Japan. The
porter five forces helps to analyze the market standards to improve the quality of product to
implement foreign economic activity. Also, the Porter’s five forces deals with the power of company
to analyze the customer preference, competitive rivals and influence the company’s productivity.
The whisky industry uses the Porter’s five forces to analyze the market and identify the policies that
required for successful expand of the business.

REFERENCES
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