Strategic Market Entry Factors and Market Share Achievement in Japan
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BUSINESSSTUDIES,FALL1988 JOURNALOFINTERNATIONAL
andits frequentrole as the key strategicobjectivein thatprocess[Jacobson andAaker1985]. Someof theearlyemphasison marketsharewas theresult of evidenceof a close relationshipbetweenmarketshareand profitability [BuzzellandWiersema1981], whichwas oftenassumedto be a directcausal relationship.Morerecentresearch[JacobsonandAaker1985]hassuggested thatthedirectimpactof marketshareon profitabilityis muchlowerthanhad between previouslybeenindicated,andthatmuchof theobservedcorrelation somethirdfactoror t o be theresultof a ppears s hareandprofitability market factors.Thoughthis researchweakensone of thebasicpremisesfor thekey roleof marketsharein strategicplanning,marketshareshouldnotbe ignored. As JacobsonandAakerthemselvessuggest,marketshareis a relativelyvisible has andeasilymonitoredindicatorof thesuccessof thepoliciesmanagement been following. In fact, Bower and Garda[1985] have suggestedthat a of "marketdriven"companiesis theiruse of distinguishingcharacteristic shareratherthanvolumeor profitas theprimarymeasureof success. Despitethe key roleof marketsharein businessplanning,surprisinglylittle attentionhasbeendevotedin the literatureto the strategicfactorsassociated with marketshareachievementalthougha considerableamountof empirical researchon the impactof marketingmixvariableson marketsharehasbeen andSchultz1976].Whileeconomists inthemarketing literature [Parsons reported have devotedsome attentionto the overallvolatilityof marketsharesin a market,theyhavegenerallyfocusedon broadlydefinedindustriesandmacro independentvariables,ratherthanon the narrowerproductmarketsandthe Thisresearch microvariablesthataretypicallyof greaterrelevanceto managers. of marketshareachievement determinants focusesonthestrategicproduct/market fornew entrants. The basic premiseunderlyingthis researchis thatit may be advisablefor companiesdevelopingentrymarketingstrategiesto try to identifyproduct marketsegmentswheresignificantmarketsharesarelikelyto be achievable. The literaturereviewcoversthe researchthatseems relevantfor the entry emphasisonthemarketsharechangeliterature strategydecisionwithparticular andtheparticular conditionspresentinJapanthatmightimpacton hypothesized relationships.Some of the majorhypothesesresultingfromthis revieware good thenempiricallytestedin the contextof capitalgood andintermediate manufacturers introducing productlinesintoJapan.Thiswouldseemto provide a stiff empiricaltest of the hypotheses,since the Japanesemarketis often viewed as being differentandvery difficultto penetrate[De Mente1984; JETRO1985;McMillan1985].Yetmanyauthorities recognizetheincreasing of theJapanesemarketandtheneedforNorthArherican strategicimportance andEuropeancompaniesto penetrateit, if they areto become, or remain, viableglobalcompetitorsin theirindustry[Ohmae1985; HenzlerandRall 1986]. The resultsof the empiricalanalysisarege
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