The success of Yoku moku cookie

Japanese consumers and the success of the Yoku Moku cookie


Japanese consumers have enjoyed the success of the Yoku Moku cookie for over 40 years. The creator of the product was motivated to enter the confectionery sector by the cuisine created with his components' confectionery qualities. Due to its standing as the greatest product ever created, Yoku Moku has established itself as a master cookie. Customers are in high demand for the goods because of its outstanding quality. The Yoku Moku cookie is subject to a set of standardization and hygiene control systems that ensure its quality (yokumoku's website).

Influence of globalization on the entry of Yoku Moku into the UK market


The product's entry into the UK's market is influenced by globalization and the similarities that exist between the two countries. The challenges are also discussed under the two modes of entry that is joint venture and franchising.

Analysis of the UK and Japanese markets: PESTEL factors


To understand the UK and Japanese market the following analysis are crucial:

Political factors


Japan is governed by an Emperor in a monarchy system of governance whereas the UK is made up of a unitary system comprising of the monarch and a parliamentary system. The emperor in Japan has little influence on the developments unlike the political parties who are more powerful. The prime minister is elected and has the influence on the economic and political laws. The queen in England is the head of state and the prime minister heads the government.

Economic factors


The economical foundation of Japan and UK are strong and forms part of the world's largest economies. The two countries emphasize more on the education of its population and the Japanese culture advocates for a contributor society where each individual has an opportunity, this helps in growing and nurturing relationships. Through this form of training individuals become prepared to the working of the world. The men can join companies and work for their careers.

Social factors


The country has a high population with a patriarchal family system.

Technological factors


Japan and UK are more technologically advanced mostly in their systems of telecommunication.

Environmental factors


Much of the Japanese and England population are concentrated in the cities as most parts of the Island are covered by forest and mountains mostly inhabitable. The area is surrounded by water thus prone to tsunami and earthquakes effects.

Legal factors


The Japanese laws including corporate and labor laws have basis on the system of the Europeans. For instance working hours and minimum wages are found in the contracts of employment.

Porter's Five Forces analysis


Threat of new entry, pro and con

The threat of new entry of the product is dependent on the ability of new firms to enter into your market. The firm's position is dependent on its ability to sustain durable and strong barriers of entry thus limiting competition.

Buyer power, pro and con

This refers to the ease with which buyers can drive the prices down. This depends on the number of buyers and the size of their orders. It is also dependent on the rival product's price. As the customers increase in numbers their buyer power reduces.

Threat of new substitution, pro and con

If the customers can find alternative to your product or service at a cheaper price, the business position become weak and can result in losses.

Supplier power, pro and con

Refers to the ease with which the suppliers can raise their prices. This is dependent on the number and uniqueness of their product or service. The more the suppliers for a particular product, the easier it is to make a choice and pricing is lower.

Competitive rivalry, pro and con

Encompass the strength and number of the competitors. It creates an understanding of the rivalry and product comparison. If the competitive rivalry is intense the company can attract customers by reducing prices and promoting the product through campaigns. If it is minimal then the firm has more strength and as such gain more (Hollensen 2014).

Strategy 1: Joint venture


Joint venture is an entry mode whose objective is to share the risks, rewards, technology and development of products joint as firms enters into a market. The venture ought to conform top the regulations that are provided by the government. The problems often identified in joint ventures include conflicts and mistrust that may arise as a result of new investment or proprietary knowledge. Some ambiguity may occur in the roles and performance. The parent firms do not support the joint ventures and thus function independently. Sometimes cultural clashes occur and pressures to compete and cooperate are often conflicting. The partners may not know how and when to terminate their joint venture relationship.

Strategy 2: Franchising


Franchising is an entry mode whereby the franchisees (semi independent owners of business) pay a franchiser (parent firm or company) fees or royalties in order to be given the right to identify with their trademark and thus be able to sell their products and services. The franchisee often can use the business system and format of the parent company. The agreements in this mode are longer and franchisor normally offer broad package encompassing the resources and rights. Franchising is more limited to the business operation knowledge and the trademarks. Some of the advantages include the low costs, low risk or interference from political situation, it also allow fox expansion in other regions simultaneously, and the franchisees can gain partnership which in turn increase the financing portfolio (Hoy and Stanworth 2003).

Conclusion


In conclusion, the new product entry into the UK's market will primarily adopt a joint venture with the firms in existence. The benefits of joint venture are the connections and improved channels of distribution. Both partners benefit when their strategic goals are convergent and the competitive goals are divergent. The ventures benefits also if their market power, resources and size are small when they are compared to those of the leaders in the industry. The partners have the opportunity to learn from each other and their inputs can be beneficial to the business and nurturing of relationships. The disadvantages of the franchising mode of entry is that to maintain control can be difficult and conflicts for instance legal disputes often are bound to occur. The franchisees can take advantage of the knowledge and skills accorded to them and become future competitors.


References

McDonald, F.; Burton, F. & Dowling, P. (2002), International Business, Cengage Learning EMEA, ISBN 978-1-86152-452-2

Cullen, K. Praveen Parboteeah, John B. (2011). Strategic international management (5th ed.). Australia: South-Western Cengage Learning. ISBN 053845296X.

Hollensen, S. (2014), Global Marketing, Pearson Education, ISBN 978-0-273-77316-0

Hoy, F.; Stanworth, J. (2003), Franchising: an international perspective, Routledge, ISBN 978-0-415-28419-6

Reynolds, F. (2003), Managing Exports: navigating the complex rules, controls, barriers, and laws. Age, John Wiley & Sons, Inc., ISBN 0-471-22173-2

Website:

https://www.yokumoku.co.jp/en/

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