Kikkoman Corporation In The Mid1990'S: Market Maturity, Diversification And Globalization

Problem: Kikkoman Corporation has been growing for seventeen generations. The key market for corporation is Japan and it is very saturated and mature. The future challenge for company is to lower dependence from domestic market and diversify worldwide.

Symptoms:

- Market in Japan is mature and declining

- Company's US factories is the most effective outside the Japan

- US market grows approx 10% annually

- Asian foods are becoming more and more popular in the US food market

Alternatives:

1. Company's market could be expanded by producing other oriental food products

PROS:

+ Very high potential market & unlimited growth

+ New customer groups and market

CONS:

- Strong competition

- High investments

2. Company's market could be expanded by opening new regions worldwide and reach new customers

PROS:

+ Very high potential market

+ Focus on things what company knows the best

+ Less dependence from domestic market

CONS:

- Influence of the local culture

- Resistant to Asian foods at all in some regions

3. Diversify vertically by opening retail Asian food stores and restaurants carrying Kikkoman brand

PROS: