DEVELOPING A DISTRIBUTION CHANNEL IN JAPAN Background The Japanese medical equipment and supplies ma Show more DEVELOPING A DISTRIBUTION CHANNEL IN JAPAN Background The Japanese medical equipment and supplies market is very promising.

DEVELOPING A DISTRIBUTION CHANNEL IN JAPAN Background The Japanese medical equipment and supplies ma Show more DEVELOPING A DISTRIBUTION CHANNEL IN JAPAN Background The Japanese medical equipment and supplies market is very promising.

In the medical category it is the second largest market in the world and is one of the few product markets that have achieved steady growth in Japan in recent years. Japanese distribution channels tend to be complex multi-layered cumbersome and often inefficient. But the market for medical equipment in Japan is promising because of the large growing elderly population and exceeds $10 billion annually. Imports have accounted for approximately 40 percent of this figure. The Japanese government imposes regulations on many medical products because of potential risks to the human body. The government is also concerned about rising prices in the sector and has established programs to hold down medical product prices. Despite their prowess in many product categories the Japanese are often not the leading producers of medical technologies. Consequently foreign firms see bright sales prospects for products in such categories as pacemakers artificial implants and interventional cardiology devices as well as software and other products used in medical information and communications systems For background on typical Japanese distribution channels see the exhibit below. The usual approaches to international distribution are to engage independent intermediaries (for exporting firms as reflected in the exhibit) or to establish marketing and sales subsidiaries directly in the target market via foreign direct investment. The Direct Investment approach involves establishing a wholly-owned subsidiary in Japan. Alternatively the firm can partner with a local company to perform distribution functions. Both approaches are typically costly and complicated. For exporters various types of intermediaries provide distribution. These include merchant distributors agents trading companies and export management companies. Trading companies are an especially popular entry mode in Japan. But because they deal in thousands of imported goods large trading companies often do not give individual products the attention they deserve. In addition many exporters prefer a full stocking distributor because it possesses product knowledge expert personnel physical facilities and financial resources. As indicated in the exhibit the typical domestic distribution channel in Japan is dominated by multiple wholesalers who perform a range of important functions. Typical Multi-Layered Distribution Channel in Japan using Intermediaries Your Task and Methodology In this exercise assume you are a manager at a leading manufacturer of medical equipment. The medical equipment market in Japan is very promising. Your boss has given you the task of helping establish a distribution channel in Japan. While there are many steps involved in creating a foreign distribution channel your task is to investigate why Japanese distribution channels are so complex and explore the major factors to consider when designing the channel. In completing the exercise you should consult several online sites and gather data. You are to answer a collection of questions relevant to setting up distribution arrangements. You may also respond to additional questions posed by your professor. Among the major factors to consider when designing the channel are nature of customers size of the market in Japan for medical equipment laws and regulations in the target market available distribution infrastructure costs of establishing and maintaining the channel. Your task is to investigate the Japanese marketplace for medical equipment (such as pacemakers x-ray machines or blood analyzers) and how to go about setting up distribution channels in Japan. For your research use the resources indicated below and then answer the following questions: Typical Distribution Functions Performed by Wholesalers Transportation Storage Product Adaptation Packaging Price Setting Advertising and Promotion Financing Distribution to Retailers Businesses or End Users Manufacturer Primary Wholesaler Secondary Wholesaler Tertiary Wholesaler Retailers Businesses or End User Exercise 2 3 1. Japanese distribution channels are known to be complex fragmented and multilayered. Why is this? Explain the factors that tend to make Japanese distribution channels complex. 2. Who normally buys medical equipment in Japan? 3. Approximately how many potential customers for medical equipment exist in Japan? 4. What is the nature of distribution infrastructure for medical equipment in Japan? How do firms normally get their equipment distributed to end-users? 5. Are there are some existing distributors who specialize in medical equipment you may wish to target? What should the firm do to recruit them as distributors? Show less

Having Trouble Meeting Your Deadline?

Get your assignment on DEVELOPING A DISTRIBUTION CHANNEL IN JAPAN Background The Japanese medical equipment and supplies ma Show more DEVELOPING A DISTRIBUTION CHANNEL IN JAPAN Background The Japanese medical equipment and supplies market is very promising. completed on time. avoid delay and – ORDER NOW

Do My Paper

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Order Now and we will direct you to our Order Page at Litessays. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.