The macro level of analysis aims to identify the country market which
has a potential for the new entry. On this level of analysis different types of
distances to the new market are investigated. These distances include
political, cultural, demographic, economic, legal, geographic, psychic, and
other distances which may influence the decision of entering the new market made
by the firm
In order to measure different types of distances which separate Muji
brand from entering the Russian market, PESTLE analysis has been applied:
The analysis of different risks and business environment shows that
there is not substantial distance to entering the Russian market. However,
several factors should be taken into account. First, the customer readiness to
buy Muji products and their attitudes to design minimalism and “No-brand”
policy of the company. In order to investigate this, we developed a
questionnaire which was distributed online among consumers. Other factors, which
should be taken into account, are the political factors and legislative
procedures which are needed to be considered and completed when entering the
Russian market.
Most of the factors you've mentioned are so negative! I would also think about some that may strengthen the position of Muji. First that comes to my mind - maybe, worsened ecological conditions would help Muji to establish some partnerships with local governments to produce & supply products that require less wastes and resources?
ReplyDeleteAnd a bit off top, just some idea: if we imply that Japan has a collectivistic image in Russia (and also some other prejudices about generic products & minimalism), maybe it's worth to launch some social campaigns in schools and kindergardens, supplying Muji products there and teaching them how to use less resources, be careful with the environment or something? Muji gives me an image of a clean, environmentally-friendly company - maybe such approach is viable in Russia?
Or are we not ready yet?
V.
Conducting the macro level analysis we mostly wanted to investigate the level of the distance to the Russian market: political, economic, legal, etc., and to determine which factors may influence the entry of Muji products to the Russian market, that is, the major obstacles that we have to take into account while developing our strategy. That is why, the factors we mentioned above are mostly negative.
ReplyDeleteFor sure, there are many positive factors, including ecologically friendly products, the positive image of Japanese products and design by the consumers, their readiness to buy ecologically products, etc. So, it is worth including them in the analysis as well.
Regarding your suggestion about social campaigns in shools and kinderdardens, we promise that will think about it more carefully while developing our strategy. Though our primary customers are older than children in kindergardens and primarly school, these children will become our customers in the future, and the teaching campaigns may be considered for the medium and long-term strategy.
Tania
Tania, thank you for your feedback! Yes that's what I had in mind - when thinking of long-term development of Muji in Russia, our future consumers are very important :)
ReplyDeleteVictoria Eliseeva