The document discusses Japan's government strategy for innovation to 2025. It outlines three key trends - declining population, aging society, and sustainability issues. The government's role is to set clear goals, timelines, and laws to address domestic problems through cooperation among industry, government, academia, and local clusters. This includes offering subsidies and tax reductions for solving specific problems in other countries. The strategy aims to achieve economic growth, jobs, international trust and presence while reducing overseas development assistance spending through global partnerships between Japanese organizations and those abroad.

2. What is Blue Innovation?
Our interpretation is:
Blue≒ Blue ocean strategy = Creating unknown market space
We propose brand-new ideas for innovation

3. What is Blue Innovation?
1. Create the products and services from scratch in
order to satisfy the specific needs in developing
country
2. Products and services introduced to other markets
which includes developed countries
Reverse Innovation: Create Far from Home,
Win Everywhere, Indra K. Nooyi

4. Economic ladder of Brazil in 2002
1R＄= 0.427 US＄
Income of
Hose hold(R$;
Month)
Class
Number
(Million)
Number of
Hose hold
(Million)
Number per
house hold
10,000〜
A
7.3 (4%)
2.5
2.9
4,000 〜
10,000
B
21.6 (12%)
5.4
4.0
800 〜 4,000
C
48.9 (28%)
12.6
4.0
400 ～ 800
D
44.2 (25%)
9.4
4.7
0 ～400
E
54.3 (31%)
7.6
7.1
※Population of Brazil =176 Million (2002)
198.7 Million (2012)
□･･･Bottom of Pyramid(BOP) 84%
BOP’s buying power is 41% of Total expenditure of Brazil
Marketing Strategy for BOP is important in Brazil retail market

5. Large market share in Brazil
Red Ocean
Retailers in Brazil market
Brazilian retailers
Ponto
Frio
Mavelus
Global Retailers
Lohas
Saem
1990 シアーズ 撤退
2013 ウォルマート 50店舗閉鎖
Blue Ocean
Retail business using installment plan
Casas is top share retailer (15%~20%)

6. retail business using installment plan
・
1) Examination by Credit research organization
2) assessment system(Income, Occupation, assumed expenditure)
NG
OK
3) Examination by Casas’s Credit Analyst
OK
4) installment plan of a small amount
・ payment term is 1〜15month
・ monthly repayment at store
・ 90% of total sales number by this installment plan

7. • Casas Bahia found out that their typical customers have no
consistent income.
• People belong in the bottom of the pyramid are obviously
neglected by business.
• However people having low income make Casas Bahia become
the largest retail chain in brazil.
• Because Casas Bahia helps them to buy necessities through
financing they pay this product by installment plan.
• As a result when Casas Bahia helps these people to buy their
necessities by financing their customers and then Casas Bahia
become a very successful business.

8. Government
supports
Strong
mindset
ManagementBusiness
of NPO
Often not
enough
Social needs

9. Founder: Masahisa Kogure
(Prior to President, worked for McKinsey
“Asian Social Entrepreneur of the Year” (2011)
Named One of the 48 “Heroes Of Philanthropy” by Forbes
iPhone Wins Multiple Awards “Good Design Award” and “広
告電通賞”

10. How it works…
“Addressing obesity”
Eat a healthy TFT meal to help yourself
and another less fortunate
“Tackling hunger”
Your US$0.25 donation from the TFT meal
will be used to provide one school meal to a
child in East Africa, Southeast Asia, and your
local community

11. Core competency is…
Partners
Partnership
Professional
Supporters
Ambassadors
Advisors
Founders
Professor at Keio
Country manger
for Twitter
Member of the
House of
Councilors
SEO at Uniqlo
Director at
Goldman Sachs
Mikuni Group
Member of the
House of
Representatives

12. What’s so special is “No business
model, No sustainable NPO”, which
is highly depending on government
supports
• Anyone can participate
- Everyone eats lunch
- Allows you to think and eat well
while doing good for society
• Win-Win
- One does good for oneself and for
another less fortunate
• Easy to implement
- CSR appeal without cost for
participating companies

13. *
New innovation structure of Japanese government

14. Three characteristic trend to 2025:
• Decrease population and rapidly aging society
• Progress of local society, information society and globalization
• Increasing issues which jeopardize sustainability of earth
2025 future Japan:
Healthy, Safety, Diversity, Contribute to the world, Open to the world
Realize the ideal future by innovation
Source: Home page of Cabinet office: http://www.cao.go.jp/minister/index.html

15. Role of Government METI
• Clear the goal
• Set only for and appropriate time schedule
• Approach target date domestic problems and issues
• Maintenance and prepare law and legal system
• Many •developed countries have almost same problems
Standardization
• Evaluation
• Subsidize
Red Ocean
Cooperative Project among Industry
Government and Academia
Local
Innovation
Establish
Free access
Japanese
Company
Foreign
Company
Local
Government
Cluster for
Innovation
Establish
Free access
University
Industry
Group
Research
Institute
NPO

16. Government of
Foreign Country
Human Resource
Subsidy
Ask support
Japanese Government
Offer support
Tax reduction
Specific Problem
in
Foreign Country
Human Resource
Subsidy
Solve
Employment
Economic Growth
Companies
Academic Institutes
Special Team
NPO
Human Resource
Technology
Experience
Knowledge
Global human resource
New Technology
Global Experience
Specific needs
Partnership

17.  Japanese government:
•
•
•
•
Achieves economic growth and job creation
Get the trust from other countries
Enhance the presence in international world
Reduce the ODA expenditure
 Companies, academic institute and NPO
•
•
•
•
•
Get financial support form government
Get international talented stuffs
Get new technologies
Specify the needs in international market
Create the connection