Question

In: Economics

Potato chips is a staple snack in Japan. Nowadays international potato chip brand are trying to...

Potato chips is a staple snack in Japan. Nowadays international potato chip brand are trying to gain control of the market in Japan. One of the strong competitor is a potato chip company from America called Pringles.

To prepare for this you can research online about the brand online or estimate how international company fare in Japan. Make a SWOT analysis table about Pringles in Japan and briefly explain it briefly!

Solutions

Expert Solution

The Japanese market is a little peculiar about the FDI investment. Recently there is news that the Japanese trying to minimize the FDI investment to keep national security on a priority basis. SOin this mode of time if we are looking for a company like Pringle to expand its business in Japan then it needs to think a bit. Secondly, the advantage of Pringle is it is from the food industry from America. SO the most exported product from America to Japan is food items, like wheat, beef, processed food, pork, soybean, and corn. so except these food items around $12 billion exported to Japan. so we can expect that Pringle may get an opportunity to proceed and establish a strong potato chips market in Japan.

Now we are going to discuss the SWOT analysis for Pringle.

Strength: It is a well-established company with good feedback from a customer over the year. it is different from others. huge market share. good marketing and promotional strategy.grip on market survey. most careful about products and customers. customer taste priority, etc.

Weakness: Not much experience in the Japanese market. competition with a strong cultural background. America based company, although there is no such barrier still there is sentimental hate towards American products. Limited personal assessability.

Opportunity: Sorong market base which can be able to win the heart of the Japanese customers. Taking care of the custom and culture both of Japan. The taste should include some local ones with other flavors. keeping a good relationship with the government/fair business in Japan.

Threat: The most vulnerable threat for Pringle is its American base.so this can be the only obstacle that can't be rectified. Japanese may or may not accept the company easily. If they find a company is against their culture or social ethic then they will never accept the product. Japan is well known for its ethic and custom. Next is the existing market competitor. Maybe barrier in optimizes production due to the change in location and availability. it will increase the cost of production.

So pringle should deeply analysis these aspects and go for its business expansion.


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