Реферат: 5 Year Plan Essay Research Paper Table

Drying Machine for Clothes

USA0.430.90.533.812.9

China0.218.20.324.337.8

Fr Germany0.322.20.216.5-23.6

Denmark0.17.60.214.292.5

Taiwan0.110.40.13.3-67.2

Other0.210.70.17.9—

Total1.3100.01.4100.03.1

Vacuum Cleaner

USA57.550.335.234.0-38.8

China8.57.520.119.4135.3

Taiwan16.714.616.816.20.6

Malaysia2.11.98.98.6317.4

R. Korea11.410.06.76.5-40.9

Other18.015.715.715.3—

Total114.2100.0103.4100.0-9.4

Source: JETRO

3.Expansion Strategy for the Future Five Years

Star Appliances, Inc started exporting to Japan in 1990. Star Appliances, Inc has built up good reputation in both product quality and full after-sale services.

According to our research, The market growth rate is expected to be about 2 percent per year for the next two to three years. Industry experts say that one key to future market expansion will be to present electrical appliances which fill an actual need, offer unique but simple functions, and have sophisticated designs which are not available in existing products.

This market’s receptivity to our products is generally good. Our suppliers of electrical home appliances are advised to note that Japanese consumers are not generally interested in low priced, low quality products. They demand reasonably priced, high quality electrical home appliances together with full after-sale service. In many cases, imported products have to be designed or modified to fit into the Japanese lifestyle and also to meet the Electrical Home Appliance and Material Control Law.

Best prospects/key success features: Japanese consumers increasingly seek electrical appliances which allow them to enjoy higher and more comfortable living standards. In particular, products that fill obvious needs (e.g., products which offer great convenience, save time, and offer healthier environments or tastier foods) have bright prospects.

For example:

High-power vacuum cleaner – There has been a persistent concern in Japan about children?s dust and pollen allergies. High-power vacuum cleaners with advanced technology (especially the ability to deal with dust mites, or dani in Japanese) are promising.

Washing machine (drum-type)- Drum-type washing machines are relatively new to Japan because the noise and vibration have not suited Japanese-style housing. However, the first drum-type washing machines manufactured jointly by a European manufacturer and Sharp Corporation were well received, and other Japanese manufacturers have begun manufacturing similar products.

In the next five years, Star Appliances will focus on product innovations and market penetration in our Japan market. We expect an increasing in sales by 15% by the end of 2004.

We are also planning on setting up a branch office in Japan in 2003. This branch office is a wholly owned corporation by Star Appliances, Inc. Setting up a wholly-owned subsidiary will involve more time and expense, but it can offer an effective means to guarantee better protection for proprietary information, obtain credit and penetrate markets which have subtle but substantial barriers to imports. Moreover, there is a perception in Japan that a company with subsidiaries is both more committed and more substantial and this perception can serve as a powerful selling point for that firm.

A branch office of our company can engage in trading, manufacturing, retailing, services, or other business. A branch office may take and fill orders and carry out a full marketing program, including arranging for advertising, recruiting a sales force and performing all necessary promotional activities. A branch is liable for payment of Japanese taxes. The branch must appoint a resident representative in Japan and must register with the Legal Affairs Bureau of the Ministry of Justice. In addition, the establishment of a branch office is considered a direct investment under the Foreign Exchange and Foreign Trade Control Law requiring reporting to the Ministry of Finance through the Bank of Japan within 15 days after the establishment of the branch office.

Setting up a branch is also for the preparation of entering China in the future. Star Appliances, Inc thinks that China is a potential market for household appliances. In order to target more Asian countries, a branch in Asia will be of great help for local industry survey and trend analysis. We would like to consider the branch in Japan as a bridge to more Asian markets.