Nakamura Lacquer Company Essay Example

sets of lacquer table ware each year so as to meet the demand from domestic market. Significant changes need to be done in the Company to trade internationally.

In case of other market segments, the price is to be comparable with price of existing. In export increase in price is more applicable. First offer has assured 5% increase in price where as in second offer; higher prices can be induced as the customers are like Hotels and restaurants.

• Profit: The overall profit will be less initially if company introduces brands for segments in domestic market
  

and will grow in the long run but the percent profit will be more or less same. The overall profit and profit percent will be more in the long run if company opts for export. First offer promises fixed rise of 5% in profit percent whereas in second offer overall profit and change in percent profit depends on the response from the customers. 7. Brand Value: Company will achieve more stability in domestic market as we will have brands for different market segments.

First offer doesn’t contribute in brand establishment whereas in second offer, after five years brand will be established in United State and company will be globally projected.

• Time period required: Time period may vary as per the response of the other market segments to our brands. In the first offer, after three years, company will be potentially double than the existing one whereas in the second offer, minimum of five years are required to establish the brand. The time period may be more than five years if the response of the customers not found positive.
• Risk involved: Expansion of business in domestic market is less risky as our company is well established. First offer brings no risk as the offer is fixed in quantity and price whereas in second offer, the risk involved is very high. If the response turned out to be less promising, the cost incurred in increasing the production level, set up will be hard to recover.

Recommendations

1. To invest for other market segments in Japan.
2. The company should accept the first offer
3. The company should look at the similar opportunities as the second offer for the business in other
   

countries.

Action Plan

1. A market survey of Japan to understand the exact need from the different segments.
2. Evaluation of our company’s current production capacity. Optimization of labor cost.
3. Survey of international market to understand the requirements from different countries and to know the major competitors available and their market share.

Contingency Plan

1. We need not worry about the possibility of failure while meeting the demand generated by The National china Company.
2. Failure to tap the other segments of domestic market will not cost the company much.