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International Business

Every day there are more American companies attempting to expand their operations into Japan. These companies face a number of critical decisions such as which marketing strategies to use, selecting entry strategies, and numerous operation, financing, and management decisions. Many companies have tried to enter Japan’s market and have failed. Two companies that have been extremely successful in Japan are Starbucks and McDonalds. Since both of these companies have entered Japan, each has grown significantly and are still expanding today.

Starbucks Coffee Japan was established in October 1995, as a joint venture between Sazaby Inc. and Starbucks Coffee International, the international portion of Starbucks Coffee Company. Starbucks believed that using a joint venture would allow them to better penetrate the Japanese market. The advantages of establishing a joint venture in Japan include greater access to local information and conditions, ease in identifying and hiring local personnel, and immediate access to customers. These advantages helped the organization grow and gain a competitive advantage. Since opening the first store in 1996 at Tokyo’s premier shopping district, Starbucks has become a leading specialty coffee


The issue of store openings has also drawn some attention. McDonalds has a vision of opening 10,000 stores in Japan. They want to do this without effecting the stores that are already open. They have reduces the annual new store opening number to 300 to minimize the effect on current operating stores. It has been approximately 450 stores per year.

Starbucks provides an experience for each customer who comes to the store that goes beyond just a cup of coffee. They provide an atmosphere that is well received and customer service that is appreciated. This is one of the reasons that Starbucks has been accepted so well by the Japanese culture. Also, the focus on trust and respect has had positive effects for the organization.

A key element in Starbuck’s success was that the company did not try to use the exact same marketing strategy as the one used in the U.S. Combining their know how with Sazaby’s marketing to develop a new type of coffee store, they took into consideration the cultural and economic differences in Japan and addressed them. Starbucks focuses on satisfying each customer by tailoring their products to the specific tastes of the customer. Since entering the Japanese market, Starbucks has received recognition from top Japanese publications and business organizations for its world-class customer service.

company in Japan. They averaged the opening of two new stores per week in 2001. They have approximately three hundred stores now open in Japan, and are forecasting the 500th store opening in 2004.

McDonalds has also focused on customer satisfaction. They believe that a customer will be satisfied when a well-balanced meeting of all service expectations occurs, such as in terms of price, taste, service and restaurant cleanliness. That is what McDonald's Japan intends to achieve through its "Value Strategy." Accordingly, they made extensive price revisions in 1995, reducing the prices of major products without sacrificing service or product quality. Now, the average spending level per customer at McDonald's Japan is far lower than that at competitors. This has helped McDonalds achieve such a significant share of the market in Japan.

Some topics in this essay:
Japan Previously, McDonald's Japan, Combining Sazaby’s, Company Starbucks, Information System, NASDAQ Japan, McDonalds Japan, , Challenge Program, Japan December, mcdonald's japan, starbucks coffee, customer satisfaction, research development, stores japan, mcdonalds japan, japanese market, stock market, joint venture, initial public offering, japan market, offering nasdaq japan, focused customer satisfaction,

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Approximate Word count = 1553
Approximate Pages = 6 (250 words per page double spaced)


  

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