Nakamura Lacquer Company faces a decision about expanding into the American market through one of two offers. The first offer from National China Company requires giving up the Chrysanthemum brand name and limiting other sales, while the second from Sammelback, Sammelback, and Whittacker offers promotional support but demands exclusive representation. Mr. Nakamura must decide whether to accept either offer or pursue an alternative strategy to enter the US market while preserving the brand identity and maximizing long-term profits.
Nakamura Lacquer Company faces a decision about expanding into the American market through one of two offers. The first offer from National China Company requires giving up the Chrysanthemum brand name and limiting other sales, while the second from Sammelback, Sammelback, and Whittacker offers promotional support but demands exclusive representation. Mr. Nakamura must decide whether to accept either offer or pursue an alternative strategy to enter the US market while preserving the brand identity and maximizing long-term profits.
Nakamura Lacquer Company faces a decision about expanding into the American market through one of two offers. The first offer from National China Company requires giving up the Chrysanthemum brand name and limiting other sales, while the second from Sammelback, Sammelback, and Whittacker offers promotional support but demands exclusive representation. Mr. Nakamura must decide whether to accept either offer or pursue an alternative strategy to enter the US market while preserving the brand identity and maximizing long-term profits.
Case Title: Strategic Expansion of Nakamura Lacquer Company
Background: Nakamura Lacquer Company (NLC), a renowned Japanese producer of lacquer
tableware, faces a decision about expanding into the American market. The company, known for its Chrysanthemum brand, has two offers: one from National China Company, which requires NLC to give up its brand name and restricts selling to other US entities, and another from Sammelback, Sammelback, and Whittacker (SSW), which offers promotional support but requires exclusive representation. Key Decision: Mr. Nakamura needs to decide which, if any, of these offers to accept, balancing brand integrity, market expansion, and profit maximization. Discussion Questions: What are the potential short and long-term impacts of accepting the National China Company's offer on NLC's brand identity and market position? How should NLC evaluate the risks and benefits of the SSW offer, considering the potential for market growth and the requirement for exclusive representation? What alternative strategies could NLC pursue to enter the U.S. market while preserving its brand identity and maximizing long-term profitability?