CASE STUDY:

NAKAMURA LACQUER COMPANY

 INTRODUCTION

 Nakamura Lacquer Company (NLC) of Kyoto, Japan.

 “Chrysanthmum” brand becoming Japan's best known and bestselling
brand
 The annual profit from operations was $250,000
 NLC did practically no business outside Japan.
 The company wanted to grow their business further.
 Due to government regulations, he cannot invest outside the country.
 NLC received two offers from American companies wishing to sell
lacquer ware in America.
STATEMENT OF OPTIONS

 To opt for National China Company for partnership in

its globalization strategy.
 To opt for Semmelback, Semmelback and Whittacker
for partnership in its globalization strategy.
 To remain focused in the domestic sector.
RECOMMENDED SOLUTION

We would suggest to with Sammelback, Semmelbach and

Whittacker Company. Because of the following reasons:
 Future base in new market will be created
 Initial investment and low margin can be
accommodated by local market
 With rise in capacity economies of scale come into
play, so production cost will go down. As a result we
can make up for low margin.
 In other option he has to start from beginning and all
over again but in this option his market base would
be created for further actions.