Harley davidson case study

Introduction

This case study is set in the late 90s. It's about an American company (AOL) that is dedicated to the ISP and media. The company launched on the Japanese market through a joint venture with Mitsui & Co. and encountered some difficulties. Mitsui & Co. was the largest and the oldest trading company in Japan.

Founded in 1941, Mitsui& Co. has more than 60000 employeesin 60 countries. It is
known as the most traditional trading company in Japan.
Mitsui’s strength was in facilitating large transactions for commodity type products. Its core competency is in import, export and financing. Mitsui had all the connection and money required.

Regarding the Internet in Japan, we must see that only 33 % of households have PC, and only 18 % of households connectedonline. Nevertheless, the number of online households is expected to grow significantly. PC’s number grows in double digits from last 3 years.
The high cost of connection to the Internet in Japan has been recognized as primary barrier. The lower access charge is expected to reduce this impediment.

That it is noteworthy in 1999 Japan was the second largest economy in the world. This country hasalways had one of the world's best technologies.

American Online, Inc. didn’t bet only in Japan. It started its international expansion with Germany in 1994.
The company expanded to Australia, Brazil, Canada, France, Japan, UK, Sweden and Hong Kong

All the joint ventures have been undertaken with a partner in local market.

In this case study, we should be questioning whether Mitsui was thebest partner for AOL to enter in the Japanese market. We should be also questioning on what John Barber should recommended to AOL to gain a more stable JV management team. We must analyze if continuing with the current JV restructure is a good solution. We must to think about the structural impediments faced by AOL in the Japanese market and about the actions should be taken. This case study asksus to make specific recommendations as to what we think AOL should do to capture additional market share.

Finally, we must do a 4P’s related to AOL japan, taking into account some opportunities, threats and weaknesses.

1 – Was Mitsui the best partner for AOL to enter the Japanese market? If so, why? If not, what kind of company would make a better partner? Why?

Mitsiu being anestablished company in Japan, had the expertise and history to become a joint venture, but not with AOL. Even though the company is respected by Japanese corporations and consumers for their goods and services, the company’s product portfolio did not possess the familiarity to deal with Internet technology and ISP, even though they had a technology department. They had the ambition to join in with AOL butdid not have the structure to deal with a global Internet giant.
Jack Davies (then AOL’s president of new market development) when identifying potential JV candidates should have sought a Japanese company with mutual interests as an Internet service provider with Internet capabilities to include technology. Instead of looking at Mitsiu’s history, Jack Davies should have researched NTT DoCoMo,which spun off of Nippon telephone and telegraph in 1992. The company was a better candidate to accommodate AOL. This would have saved AOL millions, instead of failing with Mitsiu. NTT DoCoMo had the resources and customer base to help AOL Japan become a successful joint venture.

2 – What do you think John Barber should recommend to AOL to gain a more stable JV management team?

John Barbershould have ensured:

* More diversified employee base
* Use of different marketing strategies in USA & Japan
* Increased marketing efficiency
* When Mitsiu president elects taking control of AOL Japan, the president should have been sent to the AOL in Virginia and offered to get him some training with company executives.

To succeed in the Japanese market, AOL must use its...