Cultural analysis of Japan for Postmates market expansion

Cultural Analysis of Japan for Expansion of Postmates

Before any business into a new market, it is essential the marketplace itself is considered. Postmates is looking to expand. This organisation is an on demand delivery service established within many areas of the United States, making more than 100 deliveries a month utilising the model of crowdsourcing most commonly associated with the. The mission of the organisation is to be "the on demand delivery infrastructure for every major city in the world" (Postmates, 2016). With successful establishment within the United States, the company is likely to seek out new markets where there will be sufficient demand for the service, as well as a sufficient supply of individuals willing to work as post mate "partners." One potentially valuable market is Japan;

Background to Japan

Japan is a developed market, which may benefit Postmates with its high level of concentration in metropolitan areas increasing the potential for both supply and demand in a limited area. The market has been growing since 2009, with the total level of the logistics industry in Japan being valued at €15,559 million in 2013 (Statista, 2016). Assessing the viability of the market and appropriate modes of entry, the destination or host country culture should be considered (Gioeli, 2014). This includes the location, the people and the infrastructure.

III. Geographical Setting

Japan is an Island state, with numerous smaller islands included in the territory, located in Eastern Asia east of Korea, between the Sea of Japan and the North Pacific Ocean (CIA, 2016). With a total area of 377,915 square kilometres the country is marginally smaller than the U.S. state of California (CIA, 2016). The topography is rugged, with mountains and the climate varies, there is a cool temperate in the north of the country, while the south has a more tropical climate (CIA, 2016).

IV. Social Institutions

a. Family

Family is very important to the Japanese. The main living conditions are based on the nuclear rather than an extended family, with the social norm being respect and honouring of the older family members. This is evidenced with Hofstede's cultural dimensions of high levels of collectivism (low levels of individualism) and the power distance scale, as seen in the graph on appendix A. The total dependency levels in the cultural 64.5%, with the elderly dependency ratio 43.3% (CIA, 2016).

Outside of work individuals often seek to improve personal efficiency, due to a high level of work commitment and limited family time. It is not unusual to find vending machines on every street corner; there are many service organisations offering delivery of anything from food and shopping through to furniture (Flath, 2005; Nishiyama, 1999).

b. Gender, Power, and Responsibility

The social structure is more highly patriarchal compared to the U.S., with masculine values more dominant also shown in Hofstede's cultural dimensions in appendix A. This creates a more competitive workplace, with a lower level of virtue, especially when compared to countries such as Scandinavia (The Hofstede Centre, 2016). It is quite common for work colleagues to go drinking with their peers, and bosses, after work, but this is generally perceived as a continuation of the workplace relationship, rather than separation for a social relationship (Miller, 2013).

There is a high level of personal responsibility in Japan, therefore, when our difficulties of the plan, the individual undertaking the task will usually accept responsibility, a contrasting approach to West, where responsibility may be shared or avoided (Miller, 2013). Importantly, communication within the workplace is less democratic, for example, the conference room is generally a place for subordinates to report progress, rather than the location for a lively debate (Miller, 2013). This reflects the higher level of power distance relationship seen in Hofstede's cultural dimensions (The Hofstede Centre, 2016), presented in appendix A.

c. Education

Education is well developed; 3.8% of the GDP is spent on education, and the average time spent in school 15 years, from primary school through to tertiary education (CIA, 2016). Japan is classified as having a 99% literacy rate (Index Mundi, 2016). Approximately 46% of all students attend post-compulsory education, either at a University or a junior college (Nishiyama, 1999).

e. Legal System

The legal system is generally recognised as robust and fair. The model is based on German law, it also incorporates a number of Anglo-American influences as well as Japanese traditions. The civil law system facilitates judicial reviews of legislative instruments through the Supreme Court, and except compulsory ICJ jurisdiction, with some reservations (CIA, 2016).

f. Race, ethnicity and Religion

The population primarily Japanese, accounting and 98.5% of the population, with careers making up 0.5% of the population, and Chinese make-up 0.4% of the population (CIA, 2016). This indicates the need of any organisation to adapt to the different language, as well as cultural associations with the language. Language use is generally more formal than ion the U.S., with the value placed on utilisation of individual citations on first meeting, and the ability to exchange business cards (Miller, 2013).

In terms of religion, 79.2% follow the Shinto religion, 66.8% Buddhism, and 1.5% Christianity (CIA, 2016). These percentages add up to more than 100%, as many individuals will practice Shintoism and Buddhism and in conjunction with each other. This indicates a society where there is not only respect for authority but also religious respect.

V. Language

The official language is Japanese, which is both spoken and written. However, it is notable that the internationalisation of many businesses, many commercial environment have multilingual employees, facilitating easy communication (Nishiyama, 1999). The culture approach to language Japan is the preference to use the translator, rather than the foreigners struggle with the Japanese language.

Linguistic within communication, especially in the business environment are very important. Language is highly formalised when compared to the West, and it is important for individuals undertake negotiations to demonstrate respect and honour. This includes the utilisation of formal titles and exchange of business cards when first meeting, and utilisation of formal language (Nishiyama, 1999). Furthermore, during negotiations statements made by Japanese firms regarding meeting deadlines et cetera should be taken at face value.

VI. Conclusion

Japan appears to have a great deal of potential for Postmates, The culture may be diverse compared to that of the U.S., requiring some adjustment in terms of the way products and services are presented. However, for a service such as Postmates, which utilises technology to gain business as well as provide an envitonment where a business, operating through smart phone apps and the Internet will be highly aligned. With more than 100% penetration rate of smart phones, and 86% of the population utilising the Internet, there will be few technological. However, the organisation may need to adapt strategies and to accommodate the divergences in terms of power distance and masculinity in terms of people management, and allowing for these differences in the marketing of the services.