Your STP proposal should address the following elements: Purpose of STP Process: Describe the major reasons why your company should execute the international market segmentation process. Bases and Variables: Propose the bases and variables that should be employed in the international market segmentation of the product’s consumers in the target market. Effective Segmentation: Justify how your proposed segmentation meets the requirements of an effective segmentation process. Positioning Strategy: Propose the main positioning strategy your company should undertake to best position the brand and product in the consumer’s mindset. Consumer Culture Positioning: Propose the consumer culture positioning method that your company should employ. Summary: Summarize how your STP proposal will break down (target) the market for your product into different groups of consumers that differ in their response to the firm’s marketing mix program.
You will use this matrix for Milestone One for your final project. Use it to identify the most significant strengths, weaknesses, opportunities, and threats (SWOT) characteristics identified through your research, which will inform your strategic analysis of their importance to the firm’s efforts to market and compete within your target country market.
| Internal [Firm Competencies and Resources] | |||
| Strengths (S) S_1: Strong brand recognition S_2: Variety of products S_3: Innovative practices S_4: Leading in the Ecommerce industry S_5: Customer centric values | Weaknesses (W) W_1: Inability to launch all services offered in the states W_2: limited amount of physical stores W_3: Loss margins from free shipping W_4: business model is duplicatable W_5: creating new products that flop | ||
| External [Country Market- PESTEL, Industry (5 Forces, Key Success Factors, Drivers of Change)] | Opportunities (O) O_1: Government business policy O_2: Economic stability O_3: large urban population O_4: Steady growing ecommerce industry O_5: Trade regulations | S/O Strategies Use of internal strengths (S) to take advantage of external opportunities (O). | W/O Strategies Use of external opportunities (O) to overcome internal weaknesses (W). |
| SO_1: Strong brand recognition could help bring the to the business policy in Japan SO_2: the leadership in the industry can take advantage of the economic stability SO_3: innovative practices with services will be utilized since the urban population is large SO_4: the variety of products will have better availability due to the trade regulations SO_5: Their customer centric values will stand out in the growing ecommerce industry | WO_1: Government business policy in Japan could create more opportunities to open more physical stores WO_2: The economic stability can over come loss margins WO_3: the large urban population brings more opportunity to launch similar services offered in the states WO_4: The steady growing industry can push Amazon to change up their business model to prevent other companies from duplicating WO_5: The trade regulations allow Amazon to market failed products to other countries | ||
| Threats (T) T_1: Data protection laws T_2: Environmental restrictions T_3: Industry regulations T_4: Taxation issues T_5: Ease of doing business index | S/T Strategies Use of internal strengths (S) to avoid or reduce external threats (T). | W/T Strategies Strategies to minimize internal weaknesses (W) and possibly reduce external threats (T). | |
| ST_1: Strong brand recognition reduces any possible issues that may arise when doing business in Japan ST_2: Innovative practices can help reduce the risks of environmental restrictions ST_3: Customer centric values will create a need protect customer data ST_4: Being a leader in the industry will help avoid problems with taxation issues ST_5: The variety of products offered for customers could reduce any potential issues with the industry regulations | WT_1: Amazons inability to launch all services offered in the states could be minimized due to the ease of business index WT_2: limited number of physical stores could reduce potential problems with the environmental restrictions WT_3: margin loss from free shipping could be avoided if taxation stays constant WT_4: a change in the business model to further enhance protection of customer information, abiding by laws WT_5: new product flops in certain countries can be used in Japan as long as they comply with the industry regulations | ||
Using the instructions provided in the PESTEL Analysis Guidelines and Rubric Document, complete the following template.
Jada Blanco Amazon Prime service Japan
Probing Questions to Consider
Example External Factors to Consider Between the Domestic and Foreign Markets
government ideology, government type, government business policy, political instability, political and NOG pressure groups, freedoms (personal and professional), corruption levels, tax laws, industry regulations, globalization, foreign policy, global trade agreements, import/export restrictions, tariff/duty rates (applied), wars, conflicts, terrorism, foreign direct investment incentives or limits
Step One: Complete the table below by filling in the blank cells.
| Factors | Factor Within Your Country Impacting Your Industry and Firm | Strategic Importance to Your Organization (High, Medium, Low) | Reasoning/Justification (Factual and logical reasoning for including this factor in category of PESTEL analysis) | Likelihood of Occurrence (High, Medium, Low) | Time Scale (Days, Months, Years) |
| Factor One | Government business policy | High | When starting a new business in Japan there are a series of steps needed such as registration, company seals, filing and gaining approval for tax returns and filing labour; health; and employment insurances. | High | 12 days |
| Factor Two | Freedoms | Medium | We would like for all customers to have the freedom to sell/buy a variety of products they want with out restrictions to what can be available | Low | Years |
| Factor Three | Industry regulations | Medium | The ecommerce industry in Japan is top 5 on a global comparison which helps our company to have the ability to do well in. | Medium | Months
|
| Factor Four | Corruption | High | Japan is ranked in the top 20 of the corruption index which indicates that they are clean enough to pursue a business in. | Low | years |
| Factor Five (Optional) | |||||
| Factor Six (Optional) |
Step 2: Evaluate the factors that you identified above for the opportunity and risk they collectively pose to the company. Characterize the category as favorable or unfavorable based on your responses above. Write your evaluation in the cell below.
| Government business policy brings a good opportunity for amazon because the process isn’t too difficult for new businesses. The risk of starting a business in Japan is low which is very favorable for the company. Freedoms allow for all customers to have the ability to buy/sell their products with out any restrictions from the government. Being that there is freedom for the ecommerce industry in Japan provides a great opportunity for Amazon and is favorable. Industry regulations in Japan are pretty good considering that they are top 5 in the ecommerce industry on a global scale which is a great opportunity for the company and is favorable. Corruption in japan isn’t too bad, they are in the top 20 in being clean politically and have been for the past few years. A corrupt country would make it hard to do business so starting our venture in japan brings great opportunity and is favorable. |
Probing Questions to Consider
Example External Factors to Consider
economy type, country economy situation, country economy trends, economic stability, inflation rates, interest rates, exchange rates, general taxation issues, tax changes specific to products, market and industry cycles, specific industry factors, balance of payments, import/export ratios (country and industry), producer confidence, credit availability, job growth/unemployment rates, labor costs, customer/end-user drivers, disposable income, living standards (equality and opportunity), consumer confidence
Step One: Complete the table below by filling in the blank cells.
| Factors | Factor Within Your Country Impacting Your Industry and Firm | Strategic Importance to Your Organization (High, Medium, Low) | Reasoning/Justification (Factual and logical reasoning for including this factor in category of PESTEL analysis) | Likelihood of Occurrence (High, Medium, Low) | Time Scale (Days, Months, Years) |
| Factor One | Economic stability | High | A countries economy needs to be stable enough for us to pursue business in. An unstable economy could result in loss of investment. Japan economy has remained stable. | High | Years |
| Factor Two | Taxation issues | High | We would like to collaborate with a country that doesn’t have extensive taxation issues. High taxes can affect the business because of the increased costs. Japans tax burdens are stable | Medium | Years |
| Factor Three | Unemployment | Medium | Unemployment in a country could affect the economy, as well as sales, so being that Japans unemployment rate is 2.4 and has been for some time shows good signs for the new venture | Low | Years |
| Factor Four | Inflation rate | High | Inflation rates in japan have remained unchanged at .4% so the prices on products can stay low as possible. | Low | Years |
| Factor Five (Optional) | |||||
| Factor Six (Optional) |
Step Two: Evaluate the factors that you identified above for the opportunity and risk they collectively pose to the company. Characterize the category as favorable or unfavorable based on your responses above. Write your evaluation in the cell below.
| All of the factors listed pose a great opportunity to move forward in expanding the company to Japan. As a whole I see no major risks due to the stability of the economy, low inflation and unemployment rates, along with moderate taxation burdens. This category is favorable. |
Probing Questions to Consider
Example External Factors to Consider:
population demographics and dynamics, urbanization rates, housing trends, education, diversity and gender equality, immigration/emigration, career attitudes, work-life balance, attitudes to people (especially foreigners), consumer attitudes and opinions, consumer buying patterns, media and views on advertising and publicity, fashion and role models, nationalism/origin bias, employee relations/unions, organizational culture, communication styles, management and negotiation styles
Step One: Complete the table below by filling in the blank cells.
| Factors | Factor Within Your Country Impacting Your Industry and Firm | Strategic Importance to Your Organization (High, Medium, Low) | Reasoning/Justification (Factual and logical reasoning for including this factor in category of PESTEL analysis) | Likelihood of Occurrence (High, Medium, Low) | Time Scale (Days, Months, Years) |
| Factor One | Population demographics and dynamics | High | We apricate a country with a large population so that we have better outcome in our customers and sales for Amazon. Japan is ranked 11 globally for population | High | Years |
| Factor Two | Urban population | High | The more urban the country the better chance we have in customers utilizing our services and it makes it easier to implement our services. 92% of japans population is urban | High | Years |
| Factor Three | Consumer buying patterns | High | Amazon has a great selection of products, so it won’t be difficult to appeal to the buying patterns on the consumers. Right now, japans top 3 categories in the ecommerce industry is fashion, electronic, and toys. | High | Years |
| Factor Four | Income distribution | Medium | A country that has a good income distribution will aid in the success of businesses. Japan has good income distribution where nearly 50% make over 100k -1M a year. | Medium | Years |
| Factor Five (Optional) | |||||
| Factor Six (Optional) |
Step Two: Evaluate the factors that you identified above for the opportunity and risk they collectively pose to the company. Characterize the category as favorable or unfavorable based on your responses above. Write your evaluation in the cell below.
| After evaluating the factors, I believe that the opportunity social is positive for the expansion to japan. They have steady income distribution, high population rates, and health consumer habits for the ecommerce industry. The is category is favorable. |
Probing Questions to Consider
Example External Factors to Consider
technology and communications infrastructure, intellectual property regulation, broadband and mobile speed and access, disruptive technologies, local labor research and development and manufacturing know-how rivalry, low-cost labor, consumer access to technology, social networking, e-commerce, robotics and automation, artificial intelligence, cyber security, technology investment level (private and public), technology legislation and incentives, capable industry suppliers
Step One: Complete the table below by filling in the blank cells.
| Factors | Factor Within Your Country Impacting Your Industry and Firm | Strategic Importance to Your Organization (High, Medium, Low) | Reasoning/Justification (Factual and logical reasoning for including this factor in category of PESTEL analysis) | Likelihood of Occurrence (High, Medium, Low) | Time Scale (Days, Months, Years) |
| Factor One | Technology and communications infrastructure | Medium | Amazon is a major online retail company, so the technology infrastructure needs to be large. Japan has a well-maintained infrastructure in technology | Medium | Years |
| Factor Two | Ecommerce | High | Amazon is in the ecommerce industry so a country with a good footprint in that industry is a positive for the company. There are about 95M users in Japan | High | Years |
| Factor Three | Robotics | Medium | Amazon utilizes robotics in the warehouses a delivery systems so it’s a positive for a country to have usage in this area. Japan delivers 52% of the global supply of robots | ||
| Factor Four | Social networking | High | We will market our company and products through social media since it is a strong platform. There are about 55 m users in Japan | High | Months |
| Factor Five (Optional) | |||||
| Factor Six (Optional) |
Step Two: Evaluate the factors that you identified above for the opportunity and risk they collectively pose to the company. Characterize the category as favorable or unfavorable based on your responses above. Write your evaluation in the cell below.
| From evaluating these factors, I believe they hold great opportunity for Amazon in growing in Japan. As a whole there is some risk when getting involved technologically speak but it is still a great opportunity. The is characterized as favorable. |
Probing Questions to Consider
Example External Factors to Consider
Ease of Doing Business index, contract law, employment law, tort/liability law, laws regarding consumer protection, labor, health and safety, antitrust, intellectual property, data protection, tax and discrimination, international and domestic trade regulations/restrictions, marketing regulation: advertising standards, product labeling and safety standards, corporate social responsibility (CSR)
Step One: Complete the table below by filling in the blank cells.
| Factors | Factor Within Your Country Impacting Your Industry and Firm | Strategic Importance to Your Organization (High, Medium, Low) | Reasoning/Justification (Factual and logical reasoning for including this factor in category of PESTEL analysis) | Likelihood of Occurrence (High, Medium, Low) | Time Scale (Days, Months, Years) |
| Factor One | Ease of doing business index | High | We would prefer to do business in a country where we don’t have to encounter a lot a grief. The business index scored japan a 78 | High | Years |
| Factor Two | Labor rights | Medium | We need our employees to have good labour rights when working so that all are taken care of in all event. Japan is ranked 12 globally | Medium | Years |
| Factor Three | Data Protection | Medium | Amazon requires some data from it consumers to accurately advertise products. Japan has the APPI amendment to protect consumer info | High | Years |
| Factor Four | International and domestic trade regulations | High | Amazon sends and ships many products all over the world and country so it would be wise to have a country that isn’t too strict in this area. Japan has low to non-tariff barriers | Medium | Years |
| Factor Five (Optional) | |||||
| Factor Six (Optional) |
Step Two: Evaluate the factors that you identified above for the opportunity and risk they collectively pose to the company. Characterize the category as favorable or unfavorable based on your responses above. Write your evaluation in the cell below.
| The factors in this section collectively [resent a good opportunity for amazon to pursue business in Japan. There is risk in the data protection factor. We see this as a favor category. |
Probing Questions to Consider
Example External Factors to Consider
location, logistics infrastructure, weather, climate change, energy uses/sources/fuels, environmental restrictions, sustainable and ethical sourcing procurement, supply chain management, transportation equipment and distribution capabilities
Step One: Complete the table below by filling in the blank cells.
| Factors | Factor Within Your Country Impacting Your Industry and Firm | Strategic Importance to Your Organization (High, Medium, Low) | Reasoning/Justification (Factual and logical reasoning for including this factor in category of PESTEL analysis) | Likelihood of Occurrence (High, Medium, Low) | Time Scale (Days, Months, Years) |
| Factor One | Energy uses /resources/ fuels | Low | We will need to be aware of how energy is utilized for when we build our warehouses. Japan is ranked 34 globally in energy production and utilizes petroleum oil for energy | Medium | Months |
| Factor Two | Transportation capabilities | Medium | When implementing our services the transportation aspect should be able to sustain it. Japan has an extensive and modern road network with an increase in motor vehicles | High | Years |
| Factor Three | Location | Medium | Having a country that is soundly located would be great for international orders. Japan is further away from other countries so the cost for shipping may be high | Medium | Years |
| Factor Four | Environmental restrictions | Medium | Japan is surrounded by water so we will need to consider the environmental factors like tsunamis crushing headquarters, warehouses, ect | Medium | Years |
| Factor Five (Optional) | |||||
| Factor Six (Optional) |
Step Two: Evaluate the factors that you identified above for the opportunity and risk they collectively pose to the company. Characterize the category as favorable or unfavorable based on your responses above. Write your evaluation in the cell below.
| After evaluating these factors, I believe there is a good opportunity for amazon to build their business in Japan. The transportation abilities are growing, and the fuel/energy usage is similar to the US. There is however, a risk in the environment with the weather and natural disasters such as tsunamis and earth quakes which can hurt the business flow. This category is still favorable. |
APA formatted with in-text (author, year) citation markers
How-businesses-are-affected-by-government-policy. (2019, September 4). Retrieved from https://businesscasestudies.co.uk/how-businesses-are-affected-by-government-policy/
IFR. (2017, November 23). Robots: Japan delivers 52 percent of global supply. Retrieved from https://ifr.org/ifr-press-releases/news/robots-japan-delivers-52-percent-of-global-supply
Nagai, M., & Shimada, K. (2020, March). Data Protected Japan: Insights. Retrieved from https://www.linklaters.com/en-us/insights/data-protected/data-protected—japan
Nations encyclopedia . (2020). Japan – Infrastructure, power, and communications. Retrieved from https://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Japan-INFRASTRUCTURE-POWER-AND-COMMUNICATIONS.html
Privacy Sheild Framework. (2020). Japan – Trade BarriersJapan – Trade Barriers. Retrieved from https://www.privacyshield.gov/article?id=Japan-Trade-Barriers
Statista Research Department. (2019, September 24). Number of social media users in Japan 2017-2023. Retrieved from https://www.statista.com/statistics/278994/number-of-social-network-users-in-japan/
The Heritage Foundation. (2020). Japan. Retrieved from https://www.heritage.org/index/country/japan?version=16
The World Bank. (2020). Ease of Doing Business in Japan. Retrieved from https://www.doingbusiness.org/en/data/exploreeconomies/japan#DB_sb
Trading Economics . (2020). Japan – Econimic Indicators. Retrieved from https://tradingeconomics.com/japan/indicators
Transparency International. (2018, February). Corruption Perceptions Index 2017. Retrieved from https://www.transparency.org/news/feature/corruption_perceptions_index_2017#table
U.S. Energey Information Administration . (2017, February 2). U.S. Energy Information Administration – EIA – Independent Statistics and Analysis. Retrieved from https://www.eia.gov/international/analysis/country/JPN
World Justice Project. (2020). WJP Rule of Law Index-Japan. Retrieved from https://worldjusticeproject.org/rule-of-law-index/country/2020/Japan/Fundamental Rights/
Worldomenter. (2020). Japan Demographics. Retrieved from https://www.worldometers.info/demographics/japan-demographics/#dependency-ratio
(Optional)
Template and categories adapted from the following:
Contributor, PESTLE analysis. “PESTLE Analysis Through Pictures: Pestleweb.” PESTLE Analysis. N. p., 2014. Web. 21 June 2018.
“How To Find PEST Analysis Information For A Company, Organization, Or Industry.” Business Blog. N. p., 2013. Web. 21 June 2018.
Philip R. Walsh, (2005) “Dealing with the uncertainties of environmental change by adding scenario planning to the strategy reformulation equation”, Management Decision, Vol. 43 Issue: 1, pp.113-122, https://doi.org/10.1108/00251740510572524
“Risk Assessment, Risk Analysis, Risk Mapping Template.” GroupMap – Collaborative Brainstorming and Decision Making. N. p., 2018. Web. 21
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