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Introduction
The Asahi Glass Company is a prestigious member of the Mitsubishi Group which was founded in 1907
making it the oldest glass manufacturing company in Japan. It later expanded its range of business
and its geographical location thereby becoming a multinational company dealing with various
businesses including electronics related businesses and selling of construction materials such as soda
ash and refractory bricks. After the Second World War, the demand for its products increased and the
Asahi Glass Company formed strategies which would help it to exploit the increased demand.
Competition from other companies which ventured into similar business prompted the company to
venture into other areas of glass manufacture such as television glass bulbs and automobile safety
glass. This bore fruit towards the end of 1960 when the company became the number one domestic
producer of the two products. The company later formed joint ventures with other companies such as
the Corning Glass Works in a bid to extend its business. The diversification of Asahi Glass Company
into different areas and products led to a number of problems ranging from technology advancement,
slow demand, competition from other companies dealing in similar products and improved versions of
glass from other competitors.
Management Decisions
In order for these objectives to be achieved, certain things have to change or be improved and thus
the management is faced with various questions including the sort of decisions to make in order to
jump start some of the necessary processes. According to the Harvard Business School Publication,
One of the decisions that the top management of the company has made is to allow the various
company divisions to look into the production of new products and other marketing opportunities in
other geographical areas without necessarily following specific strategic plans. (1995)
Based on the managements thought that the company has expert knowledge of the necessary raw
materials as well as the technical processing know how, they have made the decision to set their focus
on the areas of components, display and optoelectronics for integrated circuits. (Harvard Business
School, 1995)
An independent electronics division has also been established in the company which has led to the
acquisition of two companies, the Nippon Carbide Industries and ELNA whose ceramics processing
technology and aluminum capacitor and circuit board technology are expected to go a long way in
helping the division understand the process of producing electronics.
The top management o the company has also made the decision to increase its engagement in the
electronics business which has led to the decision to establish a joint venture with the Komag Inc
which was based in California. The resultant Asahi-Komag is involved in the production and marketing
of magnetic memory hard disks in Japan. This decision is based on the judgment that its expertise in
surface treatment as used in the glass business could be used to produce the disks. The company also
plans to venture into the development of both glass and plastic optical lenses and frames.
This does not however mean that it has stopped concentrating on its original business ventures that is
the glass and construction material production and marketing. It will continue to improve the quality
of these products through the use of new technologies while at the same time developing new ones.
Problems Encountered
The problems that have been encountered in the activities of Asahi Glass Company include the
following
The Asahi Glass Company focused too much on growing the technology of its different divisions as
opposed to coming up with new ideas of how to combine these technologies in order to produce better
and unique products. (Harvard Business School, 1995) Some of the divisions include the International
General Division, the Specialty Products Division and the Research and Development Division. Since
this does not seem to be working, efforts towards the integration of the various divisions and their
expertise is proving to be an uphill task as the way of doing things differs among the different
divisions.
Recommendations
The following are some of the ways which the company can deal with the problems it has
encountered.
In order to fully establish itself in the electronics industry and the related businesses which the
company engages in, the company should ensure that it is fully aware of the processes that are used
in developing these products and invest in the latest technology and expertise to ensure that it
produces quality products that can be able to compete with the products of their competitors.
The company should also invest in the research of new market opportunities and new products in
order to give it proper directions on the kind of technology to invest in as well as give the company a
clear direction in which to follow as opposed to working blindly as this will result into future losses.
The company should also seek to encourage coordination between its various divisions so that the
available technology and the expertise that is found in them are used to come up with better quality
and unique products.
The top management should look back into the objectives and the spirit behind the establishment of
the company in order to determine the vision that the founder had when establishing the company
and as such work towards its fulfillment.
The company should also survey the market and its competitors in order to get the general view of
what they are doing and how it can improve on its ideas in order to have an edge over them so as to
create a niche for itself in the market.
In order to do this, huge investments in research as well as the latest technology and experts is
necessary. Alternatively, the company can form mergers with already established companies with
similar ventures to save on the cost of establishing new ventures as it will cost more. This will also
ensure that the company does not loose out on its revenues where they are used to make large
unnecessary investments. The use of the alternatives in this case should be based on cost benefit
analysis and also whether it reduces the costs of the company and at the same time increasing its
revenue.
The final actions to be taken regarding the recommendations should be as a result of major
consultations both with members within the company as well as consultations with the companys
subsidiaries and other stakeholders.
Conclusion
The Asahi Glass Company has come a long way since its establishment and with time has undergone
major changes in terms of product diversification, geographical expansion, new company acquisition,
and product improvement. This has seen the company face various problems, some of which have
been occasioned by issues other that those that are directly related to the company, such as the
Second World War. The management of the company has used different methods to overcome these
problems and as such the company continues to experience grow even to the present day.
Marketing strategy of Asahi Glass Co
Diversification Strategy
Posted by Zander Henry on Aug-22-2018
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Asahi Glass Co Diversification Strategy is directly associated with the brand name and
product category
Asahi Glass Co Diversification Strategy has a broad product portfolio
Asahi Glass Co Diversification Strategy is associated with promising and delivering
quality and innovative products
Asahi Glass Co Diversification Strategy is also associated with excellent customer
service
Asahi Glass Co Diversification Strategy has been successful at gaining high consumer
loyalty because of unique and influential marketing strategy
Asahi Glass Co Diversification Strategy has a global customer base
Asahi Glass Co Diversification Strategy keeps adding value addition to the products and
product portfolio to keep consumers engaged
4.1. SWOT
4.1.1. Strengths
Asahi Glass Co Diversification Strategy marketing strategy can benefit from the
following internal advantages:
4.1.3. Opportunity
Asahi Glass Co Diversification Strategy has the following possibilities of business
growth:
Green lifestyles
Regional expansion
Diversification
4.1.4. Threats
Asahi Glass Co Diversification Strategy faces business threats because of the following
factors:
Increased competition
Increased imitation
4.2. PESTEL
4.2.1. Political
4.2.2. Economic
Asahi Glass Co Diversification Strategy enjoys high sales because of higher GDP
Lower interest rates make business expansion and loaning easier for Asahi Glass Co
Diversification Strategy
Low inflation strengthens the financial position of Asahi Glass Co Diversification
Strategy
4.2.3. Social
4.2.4. Environmental
4.2.5. Legal
Asahi Glass Co Diversification Strategy is aware of local and global laws of business and
human resource management
Asahi Glass Co Diversification Strategy abides by all statutes – especially labour law,
discrimination law, and employee safety laws
Increase top of mind recall for Asahi Glass Co Diversification Strategy brand and
products by 30%
Increase sales for Asahi Glass Co Diversification Strategy by 40% by the third quarter of
the financial year
Achieve a trial rate for new products of 10% during the first quarter of the launch
Increase consumption rate of existing products by 45% during the current financial year
Increase top of mind recall by 65% during the current fiscal year
Increase brand recognition by 80% during the first two quarters of the current financial
year
5.3. Increased use of digital marketing
Contract with five more leading supermarkets in the first quarter of the year to stock
product at eye level shelving
Contract with two leading online retail sites – eBay and Amazon – to stock our products,
and increase accessibility for consumers globally by the second quarter of the financial
year
6.1.1. Age
Asahi Glass Co Diversification Strategy has consumers of age groups
20-45 years
45-60 years
6.1.2. Gender
Asahi Glass Co Diversification Strategy has a broad product portfolio for both males and
females
6.1.3. Life-cycle stage
Consumers for Asahi Glass Co Diversification Strategy, according to the marketing
strategy, are in the following various life cycle stages:
Single students
Single graduates
Single people living at home/not living at home
Young couples without children
Married couples with one to four children – all at home
Married couples with one or two children in college
Old married couples with an empty nest
6.1.4. Occupation
The marketing strategy devises the following occupations for Asahi Glass Co
Diversification Strategy consumers:
Professionals
Students
House makers
6.2.2. Lifestyle
Asahi Glass Co Diversification Strategy consumer segments have the following lifestyle
characteristics:
6.3.1. Region
Asahi Glass Co Diversification Strategy has operations spread across the western
developed countries such as America, the united kingdom, and the Netherlands
It also has operations in emerging markets such as Brazil, India, and China
6.3.2. Density
The focus of Asahi Glass Co Diversification Strategy remains on the urban part of the
population
6.4.1. Personality
The marketing strategy defines personality characteristics for the consumers of the
brand of Asahi Glass Co Diversification Strategy, such as:
Determined
Confident
Ambitious
Hardworking
The consumer segments for Asahi Glass Co Diversification Strategy are regular and
frequent users of the product
The target market for Asahi Glass Co Diversification Strategy is from middle to upper
class
The target market is ambitious and desires to purchase high-end consumer products
This target market also seeks affordability
To meet target market expectations, the Asahi Glass Co Diversification Strategy focuses
on quality control
Asahi Glass Co Diversification Strategy does not differentiate between market segments
It uses a single marketing strategy to target all segments and consumer groups
Based on this, Asahi Glass Co Diversification Strategy also created the marketing mix
under the marketing strategy as a singular one for the whole market – regardless of the
segmentation divides.
Asahi Glass Co Diversification Strategy has created, developed, and maintained a brand
that satisfies all consumers under the undifferentiated marketing strategy and mass
marketing
No compromise on quality has been made in the broad product portfolio
To ensure the influence of a single marketing strategy, the Asahi Glass Co Diversification
Strategy has also adopted a consumer-centric approach in its overall marketing strategy
and operations as well
This was used for targeting strategy as well as for maintaining growth
8.1. Cost-effectiveness
8.2. Innovation
Asahi Glass Co Diversification Strategy has stayed updated with latest developments in
marketing research and marketing knowledge
Asahi Glass Co Diversification Strategy makes use of new and innovative tactics to
reach its target consumers
Asahi Glass Co Diversification Strategy also employs top of the field marketers to
facilitate its marketing strategy and promotional campaigns
Each marketing campaign launched by Asahi Glass Co Diversification Strategy is
effective catchier and more influential than the previous one
Consumers’ emotional needs strongly influence all marketing objectives and marketing
goals set by Asahi Glass Co Diversification Strategy
In addition to fulfilling functional needs, Asahi Glass Co Diversification Strategy also tries
to fulfil the emotional and psychological needs of the consumer
Asahi Glass Co Diversification Strategy tries to build a strong emotional bond with the
consumer, which also results in high consumer loyalty
9. Distribution Strategy of Asahi Glass Co Diversification Strategy
Asahi Glass Co Diversification Strategy marketing strategy highlights the use of the
following distribution strategy to maximize reach and accessibility for consumers.
Asahi Glass Co Diversification Strategy uses direct distribution country of origin as well
as in locations where it has subsidiary operations
The Asahi Glass Co Diversification Strategy also makes use of modern retailing channels
Also, Asahi Glass Co Diversification Strategy makes use of e-commerce and makes a
sale through online retailers, as well as through the company website
Direct distributions have allowed Asahi Glass Co Diversification Strategy to increase
market penetration and accessibility for consumers
This strategy is largely used for offshore operations where the Asahi Glass Co
Diversification Strategy does not have a subsidiary
In these offshore locations, Asahi Glass Co Diversification Strategy largely works
through the export model
This makes use of several intermediaries in between, before the product by Asahi Glass
Co Diversification Strategy reaches the target consumers
Intermediaries for Asahi Glass Co Diversification Strategy include not only the end retail
outlets, but also sales agents, retail agents, and distribution agents in offshore locations
For some products of its portfolio which are premium in nature, Asahi Glass Co
Diversification Strategy makes use of selective distribution channel
Asahi Glass Co Diversification Strategy has maintained a few outlets in the country of
origin, and in selected offshore markets for these products
These placements and locations are chosen based on the niche market that Asahi Glass
Co Diversification Strategy has for its premium products
These locations, placements, and marketing strategy helps make the company’s product
selectively, but readily accessible for its niche target audience
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Asahi Glass Co Diversification Strategy competes with direct and close competition
based on quality and price
Consumers choose between different companies from the industry based on their
functional offering
Consumers have progressively evolved to strengthen loyalty and form an emotional
bond with products that they consume
Asahi Glass Co Diversification Strategy also competes, thereby, with close competition
for building stronger brand image, increasing consume loyalty, and for forming strong
emotional ties with the consumer
11.1. Product
11.2. Place
Asahi Glass Co Diversification Strategy wants to have a close, emotional and personal
relationship with its consumers
The company maintains high control in its distribution strategies – especially through
direct distribution strategy
The company has a presence in leading supermarkets
The Asahi Glass Co Diversification Strategy also has company-operated stores in malls,
and otherwise to make products accessible to consumers easily
Asahi Glass Co Diversification Strategy also makes use of e-commerce to increase
penetration and sales
11.3. Price
The Asahi Glass Co Diversification Strategy prices its products so that its target
consumers can afford it easily
Asahi Glass Co Diversification Strategy uses relative pricing strategy for its products
The price of Asahi Glass Co Diversification Strategy’s products include not only the high
quality raw materials and value additions but also the enhanced customer experience
they deliver
The company’s pricing strategy allows it to enjoy stable revenue and profit growth
11.4. Promotion
The Asahi Glass Co Diversification Strategy has a high budget allocated towards
marketing activities
The Asahi Glass Co Diversification Strategy invests substantially in digital marketing
activities to reap high and effective results
Use of digital marketing has also allowed Asahi Glass Co Diversification Strategy
marketing strategy to cap costs and expenses
Asahi Glass Co Diversification Strategy also takes part in direct consumer engagement
through on-ground activities where the company initiates trials
Asahi Glass Co Diversification Strategy also invests in traditional media channels to
reach maximum consumers in the market
11.5. People
11.6. Process
All activities at Asahi Glass Co Diversification Strategy - from raw material procurement
to the final sale to the end consumer - undergo systematic processes
The processes at Asahi Glass Co Diversification Strategy are well defined, and well
communicated to all employees
All employees are trained to follow the processes internally to ensure consistently high
quality as well as timely production and deliveries
The systematic processes also ensure a smooth running of operations at the Asahi
Glass Co Diversification Strategy
The physical evidence for Asahi Glass Co Diversification Strategy includes the company
logo, company store designs, and the product packaging
Satisfied and excited customers in the retail spaces of Asahi Glass Co Diversification
Strategy, as well as during product consumption create a bubbling and an inviting
atmosphere
The e-commerce website for retail by Asahi Glass Co Diversification Strategy is also
designed with a friendly customer interface to allow maximum interaction with the brand
The store designs created by Asahi Glass Co Diversification Strategy for its retail space
allow consumers maximum interaction with the products directly.
12.3. Influencers
Asahi Glass Co Diversification Strategy regularly tracks its sales to identify the
effectiveness of its marketing strategy
Increase in sales reflect the success of marketing strategy of Asahi Glass Co
Diversification Strategy
Sometimes, Asahi Glass Co Diversification Strategy experiences increase ins ae after
some time of the launch of the marketing promotions
Asahi Glass Co Diversification Strategy frequently conducts focus groups and surveys to
identify its brand worth
These methods also help the company identify brand value, brand recall, and brand
recognition
Focus groups allow Asahi Glass Co Diversification Strategy to gather feedback on its
marketing strategy and helps it understand consumers better
13.3. ROI
All marketing objectives set by Asahi Glass Co Diversification Strategy are SMART
The quantitative set against each of the marketing objective can facilitate attainment
evaluation for the overall marketing strategy
Successful and timely attainment of these marketing objectives highlight the success of
the marketing strategy of Asahi Glass Co Diversification Strategy