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Google struggles on Japan market
Transcript of Google struggles on Japan market
Created by Lenka Hluchá
MK388: Global Marketing
Google as fast growing Global company should reconsider the strategy used in Japanese the market is very specific there. Local workforce can enhance the credibility and trust worth of Google in Japan as well. Long terms project should help Google to establish their permanent name on the share market of Japan.
Success in global business is challenging even for huge companies such as Google.
Japan, country of sunrise, is found to be very difficult to succeed in for most of the foreigners."If an organization is planning to conduct business with Japan, potential success depends upon an understanding of this culturally influenced protocol" (communicaid.com, 2014)
Giant companies such as Nokia, Motorola, eBay, and Wendy`s failed their mission to succeed on Japanese market and even Apple struggled till introduction of new iPhone 3GS in 2009. (Schuster, 2009)
This presentation shows the core troubles companies facing while accessing Japanese market on an example of Google which still struggles.
A slow-build approach
- Google will do best to stay at the market and slowly by detailed strategy plan gain the trust of the traditionally focused users and so rise the market shares as well.
Founded by Larry Page and Sergey Brin in 1998
Since 2000 Google growth to 70 offices in more than 40 countries around the world.
In 2004 Google went public with almost 20 millions shares Class A
Since than the new projects such as Gmail, Youtube, Google maps, Google earth, Android, Google Chrome, and Google+ were introduced.
First Google office in Japan was launched as early as August 2001and yet they have not become leader on their market.
Google is still struggling to become the best search engine in the world. Yahoo Japan is the biggest competition of Google in Japan.
"Yahoo Japan is a Japanese company, and most of their employees are Japanese people who fluently understand how the Japanese mind-set and business work, but Google's still a foreigner who's learned how to speak some Japanese." (Schuster, 2009)
Even after 12 years on the Japanese market Google have not succeeded to get better market shares than Yahoo Japan and there are several reasons:
- There are "different types of writing systems used in Japanese including Kanji, Hiragana, Katakana and Romaji. Users often write in combination of these languages, so appropriate keyword selection is extremely important."(Dattani, 2014)
Design of website
- Japanese "prefer websites to be ‘noisy’ or ‘busy’ while browsing the Internet"(Dattani,2014)
- Japan key concepts and values includes ‘omoiyari’ that is related to the sense of empathy and loyalty encouraged in Japanese society and practiced in Japanese business culture. Therefor Google fight with very loyal users of Yahoo Japan(communicaid.com, 2015)
Localization and Responsivenes
s - "Yahoo! Maps tends to be more accurate and easier to use than Google Maps in Japan" (Itoh, 2012)
“It takes time to establish your company in an international market and form lasting business relationships. Although Americans prefer efficiency, much of the rest of the world moves at a slower pace. It all comes down to understanding cultural idiosyncrasies and realizing they play a vital role in all international relationships.” (Vessels, 2012)
local work force
preferable form Yahoo Japan itself. Google should try to attract employees of Yahoo and so get through the traditional based culture.
New strategy of design
- Google uniform attributes does not need to fit all cultures. In Japan Google should more focus on information concept and location.
Creating a new project
or device that would be targeted for Japanese users mostly. It requires technically very advanced step so market share of Google would changerapidly in Japan.
Japan in focus.
Retrieved on February 8th, 2015 form web-page: http://www.communicaid.com/country/japan/#.VNc4pGjF9wk
Dattani,Chirag (March 5, 2014).
Entering the Japanese online market – all you need to know!
Retrieved from webpage:http://www.chiragdattani.com/entering-the-japanese-online-market-all-you-need-to-know/
Retrieved on February 8th, 2015 form web-page:http://www.google.com/about/company/
Itoh, Makiko (July 3, 2012).
Why is Yahoo the most popular search engine in Japan and not Google?
Retrieved from webpage:http://www.quora.com/Why-is-Yahoo-the-most-popular-search-engine-in-Japan-and-not-Google
Schuster, Mike( December 14, 2009)
Ten big companies that failed in Japan.
Retrieved from webpage: http://www.minyanville.com/businessmarkets/articles/wendys-google-japan-economy-apple-citigroup/12/14/2009/id/25893?refresh=1
Vessels, Jennifer(December 31, 2012)
Want to go global in 2013? Beware the 5 reasons companies fail at international expansion.
Retrieved from webpage: http://venturevillage.eu/international-expansion-fail
As Google`s website itself says: