Growth Strategy Case Study

Japanese Handset Makers: Exploring New Growth Opportunities

OR

Abstract:
Since the beginning of the 21st century, the Japanese handset makers experienced a slump in their sales in the domestic market. The factors attributed to the fall were: (1) a fall in new subscriber growth (market penetration was approaching 60%) (2) The impact of 3G (third generation) services was unclear and (3) the Japanese handset market was nearing saturation. To offset the declining sales, Japanese handset makers initiated steps to explore opportunities outside their domestic market. They felt that the advanced technologies of their handsets would help in attracting customers in foreign countries. By all accounts, Japanese handset makers could capitalise on their expertise in 3G technologies with its advent in European countries and China.

Pedagogical Objectives:

• To analyse the factors that contributed to the slowdown in the growth of the Japanese handset market
• To discuss the efforts initiated by the Japanese handset makers to make a foray into the foreign markets
• To discuss the challenges faced by Japanese handset makers ahead in emerging as strong contenders in the global handset market.

Keywords : Japanese handset makers; 3G (third generation) technology; Saturation in Japanese mobile phone market; Dominance of network operators in Japan; Growth Strategies Case Study; Japan's mobile phone market; Advanced features in Japanese handsets; Wideband code division multiple access; Sony Ericsson; Roll out of 3G services in China