Cougar Japan Essay

830 Words4 Pages
Proposal When two icons meet, the result is usually spectacular. Cougar Japan: finding the right marketing strategy - diversification and going up and down market. Before analyzing this problem I want to give you some brief information about the situation on the market. Some events have happened on the Japanese market. One of the most important is the revolution of the yen. As a result the margins of the companies were cut and many Japanese subcontractors found their order-books empty as their customers turned to overseas suppliers. Unemployment was risen, so, more and more Japanese firms were able to move swiftly into growth areas like electronics. In this case, we have two companies specialized on producing of sport shoes: Cougar International - which is oriented on the west and has the biggest sales in UK and Germany, and Cougar Japan oriented on the east sales, especially in Japan. Hugh Nicolson, Managing director of Cougar Japan suggested related (vertical) diversification which dealing with the same products on the Japan market (up and down market in the share of sport shoes). Bill Gates, Marketing manager of Cougar International, suggested horizontal (unrelated) diversification. He proposed to diversify into the shoes producing. Finally I can formulate the main Problem of this case. The Problem is Cougar Japan's considering of the right marketing strategy. You can ask me: why companies diversify? There are so many reasons for this for example, to protect the business in the crunch time (what is typical for Japan), to increase the market share, to attract new consumers and so on. The diversification is the most suitable way out for the Japanese companies. Because they want to relax more and to work less. There is a trend towards a shorter working

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