in the article “How to Win in Emerging Market

in the article “How to Win in Emerging Market: Lessons from Japan” in Harvard Business Review volume 90 issue 5 on page 126-130. that published on 2012 by Shigeki ichii. Susumu Hatori and David michael it is stated that japan is in the centre of emerging market. japan has succeeded to come to the developed market such as European states and the United states. the purpose of these articles is for picturing the challenges that the Japanese corporation faced to rage up their gross revenues to compare with other transnational companies.
in the article it said that the Japanese companies moved up from the bottom of some developed countries to strive up to the top while in the developing countries, the japanese choose to enter at the top of the ladder. so, why would they choose the developing countries for their main goods market? because they feels that the middle and the low end segment or the developing countries its where they can scoop profit, profit that higher than they made in the developed countries. developed countries economic has began to slowdown while the economic of developing countries such as Indonesia, India, Brazil, Russia and china are expected to grow certain percent at the same time.
but things are begun to changes.
in january 2012, japanese report their first annual deficit in 31 years. the companies that generate two-thirds of their annual revenues overseas such as sony, toyota and honda
have their sales fall from 2005 to 2010 which, never happen before. it is not the global recession fault. at that time Hyundai and Volkswagen had a very high overseas sales growth that was largely driven by the progress in emerging markets. so the japanese can be at fault for their deficit.
based on the analysis that the article showed, while Japanese companies are trailing in market on overseas. there are still a multinationals companies rival, not a local corporations, dominating there. For example, LG and Samsung from South korea is the leader for Television product in India, Brazil and Indonesia. In Retail Hygiene products Procter & Gamble, a MNC dominate all of the market shown Exept Indonesia, where unicharm are still leading the market sector. (its in the exhibit “Where Japan Inc. Leads—and Where It Doesn’t.”)
The massive earthquake and tsunami in 2011 also can be blamed for the semi downfall of Japan in overseas. Because they need to rebuild their domestic market that damaged by the disaster. But after Japan rebuilds, its companies that also making on the overseas will need to grow, again and also quickly because the market is still emerge. The article said that they wont succeed that unless they overcome their four structural challenges and rethink their strategies. The example from the article are two Japanese companies, Daikin and Unicharm who strive up to catch their rivals.
The four challenges are the challenges that the Japanese underestimate.
First, the Japanese corporation tend to make the use of their scheme into the established market. which is focused on the high-end market. Therefore. they lose the market portion to other challengers like national companies or the rival companies from other country. It reflects that the Japanese treat all of their markets like that. whereas each market has their own main features. example. The preference of the consumers in each market toward the types of beauty product different. Either it is influenced by the of consumer wealth or their geographic location. There is a distaste in the middle and the low end segment. It is bringing the japanese some profit In the establish market but the competition between the corporation either its local or other multinational companies are fierce and the japanese still consistent on the high end market.
For example, big clunky old tv are still in demand in india, yet the japanese electronic companies there only sell their high end product like flat screen tv that are more expensive and not affordable for a lot of people there in india. But LG and Samsung from South Korea captured the low end segment market by still producing the TV that still in demand in india. With a lot of growth in the low end segment market in india, LG and Samsung created a platform in india for their future growth and slowly taking the market, drowning the Japanese electronic manufacturer little by little.
Second. The determination of the Japanese companies to unify and get along or merging with the local companies also tends to be slow. And if they make up their mind the most suitable and profitable local companies have already been snatched up by other multinationals ( Ichii. Hattori. and Michael. 2012 ) . It is because of the Japanese cultural distance theory which that the more active of the companies to unify and acquisitions the wider the additions on distribution channels. market portion. economic systems of graduated table and their capableness.