Problem Statement
Japanese companies have enjoyed a high market share in the world market since 1980s. The products are preferred due to their high quality as compared to their competitors available in international markets. The main reason for high response of consumers is the use of advanced technologies that differentiate Japanese products from others. Unfortunately, the situation has become challenging in the last decade as Japanese companies are suffering low business activity due to the decreasing demand for Japanese products in the global market. There are numerous factors and reasons for this sudden and continuous decline in the market share (Fukao, 2013). It would be interesting and informative to explore the consumer market to identify and discuss factors that are causing Japanese products become unfavorable in a major developing market of India. For the proposed study, topic selected is, “Investigating factors affecting the demand for Japanese products in the Indian market”
The proposed topic is interesting to carry out due to several reasons. The main reason for selecting the topic is to identify the major causes that lead to the unfavorable situation for Japanese companies. Japanese products were seen as the best products in terms of quality and efficiency globally with great demand but now this is fading up due to some reasons. Japanese Companies no longer hold brand name as they used to earlier as they have been replaced by other alternative and cheaper products worldwide. It has been noted that Japanese SMEs are not involved in globalizing their high quality products to the world. Therefore, Japanese companies have failed to market and keep up with the competition with other companies around the world. Despite having world-class manufacturing and high skilled persons the Japanese companies are unable to market their products or have mostly not succeeded in other countries (McKinsey Company, 2015). The companies are incurring losses due to the decreasing demand for their products. Therefore, there is a need to identify the external factors that are responsible for the declining demand for these products and provide possible solutions for improving the business situation.
Aim of the Research/Study
The primary aim of the research is to determine the reasons and factors that are responsible for the declining market share of Japanese products in the Indian market and identify customer views for switching to products of other countries including South Korea and China. The proposed study will research the declining demand and globalization of high quality Japanese products worldwide that has resulted in the declining market share of big Japanese company such as Panasonic, Omron etc.). The study will come up with possible solution to regain the global competency.
Significance of the Research
The proposed research has high significance for individuals involved in planning and managing Japanese businesses. The research is also important for students who intend to learn how external factors can decrease the business of a company and how it is possible to revive the business position after facing a major decline in the market share. The research will include different perspectives of customers and management of different companies that will provide a clear understanding of the major causes of the declining trend.
Research Objectives
The core objectives of the research are as follows.
Research Questions
The study will endeavor to answer the below questions.
What are the possible causes of the decline in the competitiveness and demand for the Japanese products worldwide?
How can Japanese SMEs internationalize successfully to help improve country’s overall competitiveness in the Indian market?
How can the demand and lost dominance of the Japanese products be revived in the Indian market?
Which strategies can Japanese companies employ to revive the competitiveness of their products in the Indian market?
Research Plan
The plan for this research is comprehensive and clear that is summarized in the following steps.
All the steps of the planning will move in the same sequence as it is the most suitable format for conducting the research. The research will be designed in a way that each section will provide in-depth details relevant to the topic and the connection will be made by linking each chapter to another. The overall plan will move in the designed direction as it is the most suitable structure for the research.
Research Methodology and Approach
The aim of the research is to identify the reasons and factors responsible for the declining demand and globalization of Japanese products in the Indian market. The pragmatic paradigm is suitable for this type of research that aims to examine the factors responsible for the identified problem. Mixed approach is selected for the research as the problem needs to evaluate in both perspectives that are from Japanese companies and Indian customers. Both qualitative and quantitative approaches will be used in collecting the data for analysis.
Interviews will be conducted to collect the views and opinions of managers of Japanese companies including Panasonic, Omron, Nizona Corporation, etc. The interview will be qualitative in nature which will semi-structured. The interviewees’ responses will be reviewed using thematic analysis based on themes to be identified in the literature review. These themes will be drawn from the review of three key areas including (1) The declining growth of Japanese products in Indian Market. (2) The declining market share of the Japanese exports in the global market and (3) Competition of the Japanese companies with Korean and Chinese Companies. The main causes experienced by Japanese companies will be identified through interviewee responses. However, it is not suitable for the purpose of collecting views and opinions of customers. Therefore, a survey questionnaire is suitable for collecting data of a large number of consumers. The survey questionnaire will include questions based on the Likert scale that will be distributed to customers located in India who used the products in the past but switched or intend to switch to other brands. The study will use convenient random sampling for selecting consumers who will requested to complete the survey in their own convenient time. For the study, responses of 100 individuals will be collected and analyzed statistically. The statistical methods to be used may include descriptive and independent sample tests to compare groups within Indian population.
All the data will be collected through the use of random sampling to make it realistic and reliable. The data will be tested on SPSS to determine the relationship between different variables (responses provided by managers and customers). Both types of responses will be analyzed separately to make it more usable, and the discussion will be done by including three elements that are secondary sources (books and journal articles), questionnaire (Indian Customers), and interviews (Japanese Managers). The conclusion will be based on the discussion that is including all the elements in a summarized view to making it readable for the user.
References
Creswell, J. W. (2009). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. New York: Sage Publications Ltd.
Fukao, K. (2013). Explaining Japan's unproductive two decades. Asian Economic Policy Review, 8(2), 193-213.
McKinsey Company (2015). The Future of Japan: Reigniting Productivity and Growth.
Saunders, M., Lewis, P., & Thornhill, A. (2007). Research Methods for Business Students (4th ed.). London: Pearson Education Ltd.
Possible References
Asrani, A. (2006). Emerging Changes in Japan: Impact on Indo-Japan Relations. Institute of Peace & Conflict Studies, 10, 14.
Han, I. S., & Oh, K. Y. (2014). The Mixture of Fortune and Sweats: The Success of Korean LCD Industry in East Asia. Asian Social Science, 10(2), 126-138.
Harding, R., & Soble, J. (2009, July 21). Not made in Japan. Financial Times [London]. Retrieved from http://www.ft.com/cms/s/0/f0aaf81e-758e-11de-9ed5-00144feabdc0.html?ft_site=falcon&desktop=true#axzz4Vm0Btghk
Jung, K. C. (2015). Changes in the Export Competitiveness of China, Japan, and Korea. KDI Feature Article, 1-12.
Kurachi, Y., Ando, M., & Shoji, K. (2015). Changes in the Environment Surrounding Japan's Exports: An Approach Focusing on Global Trade Volume and Export Share (No. 15-E-5). Bank of Japan.
Mitsuyama, H. (2013). The Hidden Competitiveness of the Japanese Manufacturing Industry. The Macrotheme Review 2(3), 10-21.
Momaya, K., Hayashi, T., & Tokuda, A. (2006). Competitiveness of Japan. International Affairs, 4, 71-93.
Raupach-Sumiya, J. (2000). Chinese Firms as Emerging Competitors: Challenges for Japan's Industry. Deutsches Inst. für Japanstudien, Philipp-Franz-von-Siebold-Stiftung.
Takakuwa, S., & Veža, I. (2013, January). Technology Transfer and World Competitiveness. In 24th DAAAM International Symposium on Intelligent Manufacturing and Automation: Focus on Sustainability.
