Fins Tanaka
By: July • Essay • 1,397 Words • March 11, 2009 • 1,975 Views
Essay title: Fins Tanaka
Tanaka
…Committed to Quality, Excellence and Building Relationships
PRE-NEGOTIATION STRATEGY REPORT
Prelude
Over the years, Tanaka has become a name synonymous with quality, excellence, and
dynamism. With a humble beginning in the city of Tokyo, we have built ourselves as a strong,
respectable, and successful electronics corporation in Japan. We are one of the leading
manufacturers and exporters of microanalyzers with a world market share of 20%. With the
objective of expanding our global reach and maintaining our competitive position, we are
building strategies to invest in the emerging markets of the Exotican continent, with the primary
focus being on the countries of East Tropicalia, West Tropicalia, and Paradiso.
We, the Board of Directors of Tanaka, are proud to present our Pre-Negotiation Strategy Report.
Intended End-Game Position
Broadly speaking, our intended end game position is based on the five mutually
supporting foundations with respect to the Exotica market. First, we intend to
capture a 50% market share of the microanalyzer market in Exotica. Secondly,
we will take advantage of our internal efficiencies in microanalyzers production
in conjunction with the efficiencies gained by a transnational value chain
structure in order to further reduce costs and increase margins.
The following crucial factors have been analyzed to provide a basis for our strategy:
Microanalyzer Industry and Globalization:
Local Global Driver Global
Market
Cost
Government
Competition
Third, microanalyzers are a relatively small portion of our overall business (10% of sales), so
while anticipated sales growth in this product line is significant, its largest impact is expected to
serve as a brand leader for our other product lines. Fourth, we need to acquire expertise in the
character of business activities such as production and marketing in the specific emerging
markets. Finally, we recognize that our microanalyzer is a value product and as such it is well
positioned to compete with the more leading edge but correspondingly lower profit margin
products in emerging markets which tend to be more value conscious.
More specifically, we are looking to:
�� Establish and operate manufacturing plants of microanalyzers in the emerging markets of
Tropicalia and Paradiso through a joint venture with our local distributors. This will allow
for an efficient transnationally-structured value chain with local production and distribution
along with other activities which can be aligned in a similar fashion;
�� These savings along with our existing efficiencies will allow for lower price points while
maintaining our existing margins;
�� Lower price points will allow us to aggressively push our microanalyzers into Tropicalia,
Paradiso and the Exotica region. Note that our most direct competitor is Eurodata, which
has a product technologically on par with ours but with a higher cost structure.
Megatronics, on the other hand, has a technological lead but they too suffer from lower
margins. This confluence of circumstance gives us a unique opportunity in the Exotican
market. By enhancing value while maintaining quality and margins, we can capture market
share from both corporations;
�� The