Expansion of Japanese Cast Iron Cookware into Taiwan: A Case Study

Abstract

無中文摘要

Genjuro is a representative cast iron company in the north east region of Japan. This case study considers the company’s decision to expand its cookware presence in Taiwan. After a period of stagnation, the Taiwan economy shows signs of growth, with homewares being a segment predicted to have strong positive trends. In preliminary market research, potential customers indicated a favorable impression of cast iron, of products made in Japan, and said they would likely consider buying cast iron products in the future. To take advantage of these favorable conditions, Genjuro must overcome its major challenges and use its core competencies in order to build and sustain competitive advantage. The major challenges are low brand awareness, low market penetration with inconsistent pricing, and low product knowledge by potential customers. The company’s strengths are that the products themselves are very high quality and beautiful, and are positioned to tap into existing trends among Taiwanese for healthy eating and more cooking at home. Plus, Taiwanese people have a favorable view of products made in Japan, and while brand awareness of Genjuro is low, it’s also low among competitors. The strategies in the 4-P model, starting with replacing the distributor in Taiwan, will help the company meet these challenges and leverage its strengths. Opening a dedicated retail location and increasing the brand presence in department stores will both raise brand awareness and provide multiple opportunities for customer education. Outreach via cooking demonstrations, marketing collateral, social media, and magazines are the interconnected strategies that will introduce customers to these products. Widely sharing the Genjuro story with consumers will ultimately be the key to leveraging core competencies to sustain lasting competitive advantage.