Exporting Products
For over 30 years, Al Merik Surfboard Company has been referred by many as a world leader in the production of surfboards .the Company has been producing more world champions' board than anyone in history. Products from Al Merik Surfboard Company are known all over the world and they have been quite marketable abroad. Despite the presence in the world, AL Merik Surfboard Company has never ventured into exporting its surfboards to Japan. The paper is a proposal on the basic idea to the Vice president of Al Merik Surfboard Company on how their surfboards can be marketed internationally.
Before embarking on the introduction of a product that is fairly new to market, it is mandatory to carry out market research on the particular new market. There are therefore various important factors that have to be considered when looking at Japan as a potential market for surfboards abroad. These factors are:
Geopolitical
Before surfboards to Japan the geographical and political situation in Japan should be thoroughly examined. First of all Japans geographic location presents a challenge for exporting Surfboards into the country. Japan is located in the Pacific Ocean and lies east of the Sea of Japan, North Korea, China, South Korea and Russia. This does not hinder the exportation of surfboards into Japan since there is an effective logistic system that will ensure the products securely reach the destination.
Japans demographic provide both an opportunity and a challenge when it comes to marketing of surfboards. First of all Japan is ranked tenth when it comes to population in the world. Japan has a population of over 125 million people. This is a great opportunity since a high population is an indication of a large market for products exported to the country. However Japan has a very serious demographic disadvantage since its population is seen to be ageing and shrinking. This situation is not so very serious as yet but in decades to come the situation will have escalated. The working population in Japan between the age of 15 and 24 has declined by 6% in the past decade. This fall is stipulated to be steeper in the next decade meaning that the market for the surfboards will be declining.
Despite globalization of business companies have to ensure that they abide by the rules and regulations which are set in the countries where they operate in. Japan is an established democracy therefore there is a high level of political stability in the country. The political stability in Japan will encourage trade and therefore it will be easy to export surfboards to the country. Other multinational companies in Japan are doing fairly well since the political climate is favorable for their existence and continued stay in the country. Surfboards have become quite popular in Japan and there are some local companies which have taken up the production of surfboards. There is also a growing culture of home board building which has gained a lot of popularity. This is not a big competition since pro-shapers still occupy a large market and therefore surfboard exports will attract more people since they have been professionally done and since they are imports they will be considered to be better.
Cultural Issues
Japan is becoming more westernized and American things are now becoming trendier. Among the things that are becoming trendy in Japan are surfboards. The surf culture in Japan is what will affect the business plan of exporting surfboards to Japan. This unique surf culture came to Japan with the hippie movement that took place in the 1960s.it was not until the late 70s that surfing became popular particularly for teens who liked competing. Surfboards then became popular and surfing was a trend for families and even older people and not just the youth for leisure. Now a large variety of people really enjoy surfing in japan. Surfing culture has evolved in Japan such that surfing is enjoyed by anyone and everyone wherever waves are found.
With a very high population of about 125 million it means that Japan will provide a large market for surfboards. The surfing culture is not in the young only even the old are now taking up surfing for leisure. This means that the surfboard market in Japan is very large due to the high population. Japanese people also enjoy high living standards. About 90% of the population terms them selves as being part of the middle class. This means that a large percentage of the population can easily afford the surfboards...
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