Japan was chosen as the target market for company expansion in view of its highly enabling and technologically advanced business climate, its reformed regulatory laws, its supporting infrastructure and presence of white goods industry clusters across the country. Once the country was chosen as the target market, the question of market entry mode was examined in some detail. By comparing several modes viz., licensing, subsidiary formation, joint ventures and mergers and acquisitions, the study arrived at the conclusion that it would be most appropriate for the company to enter the Japanese white goods production sector through forming joint ventures, because of the inherent advantages of the method as compared to the other methods, and in spite of the high initial capitalization requirements.
This study was undertaken to examine the business environment relating to the white goods sector. It examined, through secondary research, the business opportunities in Japan and India, determined the prospects for a white goods manufacturer in setting up production units in either of the two countries, as also choose the relevant market entry mode for one country. The desktop research was conducted with sources from government websites and relevant journals. The brief was to evaluate the target market of Japan and India and to guide the company, M/S X Washing Machine Company adopt a suitable market entry mode for setting up business production in a chosen country. It relied on known business and marketing concepts for arriving at its conclusions, given the limitations of research.
The study was to assess the market for producing washing machines in Japan and India.