Essays on Business Report of Country Analysis and Foreign Market Entry Mode Choice - Japan Case Study

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The paper "Business Report of Country Analysis and Foreign Market Entry Mode Choice - Japan" is a perfect example of a marketing case study. This paper presents a business report on country analysis and foreign market entry mode choice. The report focuses on the market of pet care products internationally of a company that has been expanding rapidly but has now saturated in the domestic market with the same products. The pet care market consists of the sale of cat care, dog care, other pet care and pet health care products.

In this case, the products will be marketed in Japan, and the report will offer a detailed macro environment of the country and abroad market evaluation. In addition, the report will include an assessment of various entry modes available to the company and present the best entry mode based on market research. The purpose of this report is to assist the senior manager of the company to assess which entry strategy is most suitable for the firm. Country and market information gathering The Japan pet care market Latest statistics, which have been provided by the Japan Pet Food Association (JPFA), indicates that the Japanese have 22 million cats and dogs and this outnumbers children below 15 years of age by approximately 30 percent (Petfoodindustry. com, 2011).

In Japan, the pet industry is believed to be a real growth industry. This is evidenced by the fact that there is a marked social trend of an amplifying number of Japanese individuals choosing to rear pets at their homes, especially cats and dogs (Petfoodindustry. com, 2011). Furthermore, it is true that the Japanese pay abundant attention to their pets, their health, nutrition and comfort and as a result, they only purchase the most quality care products.

The entire Japanese pet industry, which consists of care products, food, live animal sales, accessories, salon, clinic, animal medical devices and pet insurance, was valued at 15.6 billion U. S dollars in 2010. In the same year, the total sale of accessory products, pet care products and pet food was 5.1 billion U. S dollars. However, compared to 2009, there was a drop of 0.8 percent and this was linked to the economic downturn and the reduction in the sale of live animals (Petfoodindustry. com, 2011).

The table below shows the sale of pet care products in 2009 and 2010. It is true from the table that the sale of pet care products in Japan has been on the increase meaning that there is a likelihood of the company emerging successful in its new market (Petfoodindustry. com, 2011). Sales 2009 % change 2010 Sales value of pet care products 904.3 2.1 (increase) 923.7 Sales value of pet food 3,720.7 1.3 (decrease) 3, 673 Pet accessory products 507.7 2.1 (increase) 518.6 Some of the pet care products, which have marked an increase in sales volume, include premium food, weight-specific products supplements, and age-specific products.

This increase is because of amplification in the number of persons who keep pets, treat them as part of family members, and pay adequate attention to the health of their pets (Puotinen, 2000). The snack market attained sales volumes of $564.3 million in 2010, growing by ten percent compared to 2008. This growth has been linked with increased demands, especially for cat snacks. Furthermore, the market for indoor training instruments and techniques to divert pets from specific behaviours, particularly employed for indoor training is gradually expanding (Puotinen, 2000).

This is because of the boosted number of indoor pets, which has seen to it the significance of animal indoor training. In addition, the sale of other pet care products such as ear cleaning and dental care has also increased due to the increase in pet owners who pay attention to ear and mouth hygiene of their pets (Petfoodindustry. com, 2011).


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