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SK-II
Cultural Distance
Administrative Distance
Geographic Distance
Economic Distance
Bargaining power of buyers
Rivalry among
existing competitors
+ large market
- relatively low buying power
-> limited number of potential cutomers
- adaption to multi step program
- high advertising costs
- customs registration & tariffs
- competition
Europe
+ face cleaning process already multi step
+ purchasing power
+ knowledge transfer
- competition
- brand awareness
- transport & tariffs
Japan
+ established multi step face care ritual
+ well recognized brand
+ only one main competitor
+ relatively low development costs
+ higher profits than in other markets
- not in line with global product rollout strategy
- not in line with global innovation strategy
further prospective: gain enough money to finance market entry in Europe and/or China at a later stage.
Baumgartner Ines
Lohninger Birgit
Schweizer Gerlinde
P&G Japan
Alternatives
The Problem
Stagnating growth rates in Japan
O2005 restructuring process
Focus on maximizing sales volumes & worldwide product rollouts
Barrieres & Risks
Goal
China
Push SK-II
Face care rituals Competition
Investment
Overall product range
Product price
Threats of new entrants
Porter's 5 Forces
Bargaining power of suppliers
C A G E
Framework
Threats of substitues