Why Apple failed in Japan

1. Why Western Companies
Fails in Japan
An overview by
Saurabh Sao, Pooja Sharma, Shelly Drall
Jindal Global Business School.

2. Lets start with few
bold statements

3. The Japanese market is infamous
for being difficult

4. A lot of foreign companies fail to
enter Japanese market

5. They could do a lot better with a
little bit more of understanding

6. Before we talk about solutions
let’s look at the problems

7. In this presentation we will talk
about..

8. The three Ws

9. Who failed?
Why did they failed?
What can we learn from that?

10. Time for a little
background knowledge

11. Japan’s economy is stagnating
since early 90’s but..

12. ...Japan is still the
world’s 3rd largest economy

13. Although Consumer Spending has
declined

14. .. the potential market is BIG..!

15. Let’s have a look how Japanese
people spend their income

21. There actually is
money to be made

22. There is a big market and there is
money to be made. No problem
Right..?

23. Not exactly….

24. Time and time again Japan has
proven a difficult market for
foreign companies

25. So what’s the talk about foreign
companies failing in Japan ?

26. Lets have a small
Quiz

27. Which of these companies failed in Japan?

28. All of these companies have failed to gain a
foothold in Japan

29. Let’s have a more detailed look at
some companies and Why they
failed in Japan

30. Case:
Japan to Apple’s iPhone
“No Thanks!”
Source:
Yukari Iwatani Kane, “Apple’s Latest iPhone Sees Slow Japan Sales,”
Wall Street Journal, September 15, 2008, B3.

31. Questions:
1. Did Apple make a mistake in trying to sell its latest
iPhone in Japan?
2. Is the Japanese cell phone market similar to cell
phone markets in other countries?

32. Questions:
1. Did Apple make a mistake in trying to sell its latest
iPhone in Japan?
2. Is the Japanese cell phone market similar to cell
phone markets in other countries?

33. Entry of Apple into Japanese
market taught a number of
lessons

34. Numerous factors affect
consumer behavior and their
purchasing decisions.

35. Apple’s iPhone – A 3G Phone

36. 3G Phone
3G network in Apple’s iPhone is a common feature in
Japan
Most Japanese phones use 3G to access internet
services
A feature that has been used for several years in Japan.

37. Apple’s iPhone – Touch Screen

38. Touch Screen
Clients in Japan feel Apple’s iPhone
touch screen will have
problems using this feature.

39. Apple’s iPhone – The pricing plans

40. The pricing plans
The iPhone’s monthly plan starts
at about $60, which is
too high compared to competitors.

41. Exposure to Technologically
advanced phones

42. Technologically advanced phones
• Satellite navigation services
• Digitalized TV-viewing phones
• High-end color display phones
• High-definition Camera
Apple’s iPhone lacks some of these features

43. Additionally Apple’s iPhone lacks

44. Additionally Apple’s iPhone lacks
“The emoji”
One of the most cherished features among Japanese phones,
which makes e-mails attractive

45. Additionally Apple’s iPhone lacks
A fashion accessory
Cellphones are also more of a fashion accessory in Japan
Carrying around an iPhone could make you look pretty lame.

46. Additionally Apple’s iPhone lacks
Most mobile phones used in Japanese market allow their users to use it as
Train passes & Debit cards
a phenomenon that is lacking in Apple’s iPhone.

47. Lesson learned by Apple

48. Lesson learned by Apple
How mobile phones consumers in Japanese market
• perceive
• reason
• think
• feel
• select

49. Lesson learned by Apple
How Japanese customers select
• products
• brand
• retailers

50. Lesson learned by Apple
How the company can develop marketing
strategies in Japanese market and other markets
like Japan.

51. Lesson learned by Apple
How Japanese consumers can be motivated
to purchase iPhones that differ from
Japanese mobile phones

52. Lesson learned by Apple
About the behavior exhibited by the
Japanese consumer when
making purchasing decisions and shopping.

53. Lesson learned by Apple
Different consumer behaviors across different
cultural and geographical zones affect the
marketing mix of an organization

54. Apple in Japan Now..!

55. New Strategies
• A new and improved iPhone as per customers
demand
• Deal with mobile operators, to sell the Apple iPhone
in Japan.

56. According to the Counterpoint Research, global Apple
iPhone sales grew 26 percent annually crossing 20
million unit monthly sales mark for the first time ever

57. So what should I consider before
jumping into Japanese Market?

58. Questions to ask yourself

59. Questions to ask yourself
Can I apply my global strategy or
should I develop a local strategy?

60. Questions to ask yourself
What's the (Japanese)
competition doing?
Can I keep up?

61. Questions to ask yourself
Do I market my products
correctly to my (Japanese)
customers?

62. Bonus Considerations

63. Bonus Considerations
Am I catering to special taste and
customer demands?

64. Bonus Considerations
Does my team understand the
cross cultural challenges?

65. What are your ideas?
Thank you for Listening..!

66. Thank you..!