Final Project

Global Marketing
Submitted To: Dr. Imran M. Qureshi

Submitted By: Muhammad Ali Taj Abbasi

Registration# : 5754-FMS/BBA/F19

Subject : Global Marketing

Date : 29 August 2022

 CONTENTS
❖ Country selection process
❖ Preliminary Analysis
❖ In Depth Analysis
❖ Final selection
❖ Porter’s Diamond Model
❖ 8 PS Of Marketing
❖ STP
❖ Trading Blocs
❖ Theory Of FDI
Country Name

Japan
Industry
Tires Industry
Company
YOKOHAMA Tires ltd
 Country we’ve selected

Uzbekistan

Company

Yokohama Tires
.
 Japan
Japan is an island country in East Asia. It is situated in the northwest
Pacific Ocean, and is bordered on the west by the sea of japan , while
extending from the sea of okhotsk in the north toward the East China
Sea, philippine sea, and Taiwan in the south.
Japan major industries includes automobiles, consumer electronics,
computers, semiconductors, and iron and steel. Additionally, key
industries in japan’s economy are mining, nonferrous metals,
petrochemicals, bioindustry, shipbuilding, aerospace, and processed
foods.
Japa.n is one of the largest and most developed economies in the
world. It has a well-educated, industrious workforce and its large,
affluent population makes it one of the world’s biggest consumer
markets.
Japan’s economy was the world’s second largest (behind the US) from
1968 until 2010, when it was overtaken by China. Its gross domestic
product (GDP) in 2016 was estimated to be USD 4.7 trillion, and its
population of 126.9 million enjoys a high standard of living, with per
capita GDP of just below USD 40,000 in 2015.
Japan
Japan regards Uzbekistan as a key state in the Central Asian region in terms of
geographic location and economic potential. This is evidenced by the fact that about
57% of the total amount of Japanese aid allocated to the region falls on Uzbekistan. The
improvement in the rating of Uzbekistan in the annual report of the World Bank
and the International Finance Corporation "Doing Business" from 166th to 76th
place is a positive signal for Japanese business circles. At the same time, according
to the International Finance Corporation, Uzbekistan entered the top ten reformer
countries in terms of creating favourable conditions for doing business.
Japan Trading Blocs
In 2018, Japan and six other countries (Australia, Canada, Mexico, New Zealand,
Singapore, Vietnam) signed and ratified the Comprehensive and Progressive Agreement for
Trans- Pacific Partnership (CPTPP). Four other countries (Brunei, Chile, Malaysia, Peru) are
signatories but have not yet ratified the CPTPP.

Japan is the member of G7 and it originated from an ad hoc gathering of f

in 1973, the G7 has since become a formal, high-profile venue for
discussing and coordinating solutions to major global issues, especially in the
areas of trade, security, economics, and climate change.
❖ Major Industries in Japan
❖ Manufacturing
❖ Transport
❖ Agriculture
❖ Retailing
❖ Construction
❖ Electronics
❖ Food
❖ Biotechnology
❖ Steel industry
❖ Electricity
 YOKOHAMA TYRES
The Yokohama Rubber Company, Limited is a tyre company
based in Tokyo, Japan. The company was Founded and began
on october 13,917, in a joint venture between Yokohama cable
manufacturing and B.F Goodrich. In 1969, the company
expanded to the United States as Yokohama Tire Corporation.
Headquarters: Minato City Tokyo, Japan
 Porter’s Diamond Model
❖ Industry Structure
❖ Industry Strategy
❖ Rivalry

Factors Conditions
❖ Natural Resources
❖ Labour
❖ Capital
❖ Information
❖ Entrepreneur
 Demand Conditions

 Market size

 Market Growth Rate

 Related Supporting Industries

 Yokohama And Porter’s Diamond Model
Industry Strategy
Yokohama Tires strategy is to focus on customers to provide them with high-quality
products that offer continually consistent quality and taste in the offering.
Yokohama promises value for money and satisfaction to customers and design it
strategic focus and decisions i the same manner- to allow maximization of value for
money to customers through efficient processes that also lead to cost saving for the
company.
Industry Strategy

Diversification
 Expansion
Consolidation
Cost Reduction
Industry Structure
Yokohama Tires is a flatter organisation that supports open and free
communication. Done all the processes includes in manufacturing
like;
Bead Wedding
Calendaring
Extrusion
Internal Mixer

Curing
The company offers easy and quick access to managers and
supervisors , and thus allow a creative and trusting organizational
culture that helps in the growth and progress of company.

Two Types of Structure

Horizontal
 Vertical
The industry structure of Yokohama Industry is Vertical
because they done all the process that include in
manufacturing of tyre.
Factor Conditions
Factor Conditions are elements and aspects that provide a
competitive advantage to the industry and its firms. However,
factor conditions, natural resources are usually developed by
the country at large.

● Natural Resources
● Capital Resources
● Human Resources
● Information
● Entrepreneur
 Natural Resources

These are natural Resources available to Yokohama company in its home

country, as well as in the countries where it has set up operational and
production plants. These includes, the presence of natural resources such
as water channels and other natural resources are available to a firm
because of its location and are relatively cheaper for the firm to access.
They do not need to be developed or created but refined for usage
generally.
 Capital Resources

These includes the financial resources that are available to

Yokoyama . For Yokohama these are available through equity
capital resources and debt financial resources.
Equity based capital is largely generated within the company ,
using internal resources and channels only. Debt based capital
on the other hand , involves debt taking from external sources
and organisations.
 Human Resources

Human Resources includes the skill levels, and performance of

the human resources at the Yokohama Tires. It also involves
the training programs and other investments programs
undertaken by Yokohama. The Rubber in relation to its human
resources and employees across the globe. It also includes all
human resources functions from recruitment to performance
management which work towards employee development and
growth.
 Information

This includes information and knowledge available to a firm

this may be acquired through countrywide resources , industry
wide resources. This is very important for a firm in developing
a competitive advantage that help it stand out from its
competing players.
 Nature Of Rivalry

Destructive
 Collaborative
Industries export more and generate revenue
Related And Supporting Industries

The presence of related industries in domestic and international

markets has also been a source of growth and development in terms
of expansion and and internationalization of Yokohama. This is
because related industries have helped Yokohama in the business
operations by providing support materials needed for successful
operational excellence. Yokohama Tires for example, has been able
to source packaging materials and raw materials locally in different
consumer markets, which have helped in control costs and expense,
and achieve economies of scale.
 UZBEKISTAN
Uzbekistan is a central Asian nation and former soviet republic. Its known for its
mosques, mausoleums, and other sites linked to the silk road, the ancient trade
route between China and the Mediterranean.
Samarkand, a major city on route, contains a landmark of Islamic architecture,
the Registan , a plaza bordered by three ornate , mosaic-covered religious
schools dating to the 15th and 17th centuries.
Capital Tashkent

President Shavkat Mirziyoyev

Currency Uzbekistani som
Population 34.23 million (2020)
Official Language Uzbek
 Uzbekistan owns 2.8 million cars , the state statistics committee said in a report on
Tuesday . As of January 1, 2021 the numbers of vehicles owned by individuals in
Uzbekistan topped 2,955,295 units this is by 14.5% more than in 2020.

Vehicles includes passenger cars, trucks, buses, minibuses, special vehicles .

Purchasing power parity of Uzbekistan surged by 9.03% from 2,270.9 LCU per international dollars in
2020 to 2,475.9 LCU per international dollars in 2021. Since the 19.15% jump in 2011 purchasing
power parity soared by 311.29% in 2011.
Uzbekistan’s economy grew by 7.4% percent in 2021.
Uzbekistan’s GDP expected to grow by 4.0% in 2022 and 4.5% in 2023
 Uzbekistan’s trading Blocs
Uzbekistan has signed trade agreements with 47 countries providing most favoured nation
treatment. It also signed bilateral investment treaties with 49 countries, but five of them have
not entered into force. The country became an observer in the Eurasian Economic Union
(EAEU) in 2020

Uzbekistan currently has free trade agreements with eleven countries - all of them are former
members of the Soviet Union. On April 9, 2021, the European Union accepted Uzbekistan as the
ninth beneficiary of its expanded General System of Preferences (GSP+) trade arrangement, which
removes tariffs on two thirds (6,200 titles) of the product lines covered by GSP.
8ps of Marketing Mix
● Product
● price
● Place
● Promotion
● people
● Positioning
● Processes
● performances
Product
Sells its products in different categories, and each of these as separate product lines. All
of its products are sold under the brand name.
Sells products with a lot of variety available, which allows customers to select the
product variety that best suits them.
Sells products that are highly differentiated , with various features offered to customers
that competitors dont offer. Its products therefore considered to be unique
Its products are perceived to be of higher quality than that of competitors. Therefore
customers are paying good price for these..
Sells products that are famous for its traditional design that are also practical for
customers to use.
 Price
The current pricing strategy to set the price level that follows is a competitive
based pricing strategy. This is because the data on competitors is available due to
large number of competitors.
Has fixed the prices of the final product . channel members; retailers and
wholesalers , buy the product at lower price and earn through their own margins.
It charges no price for online orders to become more stable in the initial stage and
it attract more online customers.
It currently use product bundle pricing as well, where products are bundled
together and sold at prices lower than the total of individual items.
Introduce discounts and allowances, where its lower prices for a short period of
time in order to attract customers and gain market share.
Place
For Yokhama the best place is samarkand, from where it sells its products to large
retailers through different methods like personal selling.

Sells it products through two marketing channels , first its sells directly to to the
customer and second it sells to wholesaler who then sell to different retailers located all
over the country, then sell to its customers.

From this place, it follows an omni-channel distribution system where it has integrated
its online and offline stores to allow customers easy access to its products.

Ensure that it sells its products to large retailers through personal selling.These large
retailers have grown in recent years and attract a large numbers of customers. This
would ensure that increases its sales.
Promotion

Use multiple media channels to promote its products, its uses

traditional media, which includes and advertisement and radio. This
is beneficial due to its large reach and ability to attract a large
number of people. Its uses social media advertising, which is cheaper
and beneficial due to increase usage of internet.
Undergoes various sales promotion taking part in various trade
exhibitions and events around the year
Undergoes personal selling with a large sales force to increase its
presence in retail stores.
People

People working under its sales team that play a vital role in its
marketing efforts. These people have been trained in persuasive
techniques, but also to show respect to the business customers
taking into consideration their preferences.
People working at retail stores who help the customer on site ,
by answering any questions or helping them decide the product
that best suits their needs.
People working with suppliers to obtain raw materials, these people
play a vital role in delivering value to customers.
Process

Make sure that its products are always available at retail stores has
systems installed where retailers can notify when their inventory
levels are low. Provides them with more product while ordering its
productions and replenish its stock. This ensures that products are
always available to customers when needed.

Has an online delivery process, where orders are received in the

computer system and based on these orders , the relevant product
from the inventory is shipped to delivery service provider.
Performance

Analyzing and measuring the financial and non-financial

implications of the possible outcomes of an activity or
decision.
● Review Goals
● Review competitor Performance
● Review customer and market contect
● Decide on changes
Yokohama Tire Corporation STP

Segmentation
Automobiles industry, Motorsports, Merchandise
Target Market
Family cars, Passenger Vehicles, Trucks, Bikes.
Positioning
Superlative tyre performance, ever innovating R and D and most eco-
friendly in terms of initiatives taken to reduce and recycle raw materials.
Theory of Foreign Direct Investment (FDI)

Firms as seekers
❖ Market
❖ Resources
❖ Security
❖ Knowledge
❖ Factors Advantage

Exploiters Of Imperfection

❖ Access
❖ Factor Mobility
❖ Management

Internalizer
Modes of Entry

➢ Exports

➢ Strategic Alliance

➢ Joint Venture

➢ Licensing
Strategic Alliance

➢ Distribution Alliance

➢ Manufacturing

➢ Joint Venture

➢ R and D Alliance

➢ Research And Development

 Firms As seekers: Customers are highly attracted toward these tyres
and like eco-friendly tyres because no other company is providing eco
friendly products in such an affordable price. The campaigns to use eco-
friendly products are increasing day by day so, more and more customers
are attracted towards the tyres of our company. That is why we have
selected this country where consumers of eco friendly tyres are
increasing day by day. There are many tire importers in this country
however there is a lack of eco friendly companies in this region; as
Yokohama is one of the renowned companies for eco friendly Blue earth
tyres so it can provide environmental friendly products whose demand is
increasing day by day due to the prevailing climate change catastrophes.
Yokohama has opportunity to provide quality environmental friendly
. that will help them to increase their profitability by capturing
products
consumers whose needs to ensure environmental friendly products are
increasing day by day. Following are the characteristics that no other tyre
manufacturing company is providing nowadays in Uzbekistan.
 .
1: Yokohama's discovery of new tyre technology that combines orange oil extracted with fine
silica. This breakthrough has reduced petroleum based products that are used for manufacturing
tyre so this reduces rolling resistance by 20%.

2: Airtex advanced linear design that makes blue earth eco friendly tyres as a result less amount of
CO2 is released.

3: Yokohama manufactures tyres with appropriate inflation levels so less fuel is consumed as result
of this techniques.
Swot Analysis Of Yokohama Tire corporation

Swot analysis of Yokohama tire corporation analyses the brand by its strengths,
weaknesses opportunities and threats. In Yokohama swot analysis, the strengths
and weaknesses are the internal factors whereas opportunities and threats are
external factors.
Strengths
Weaknesses
Opportunities
Threats
Yokohama Tire corporation Strengths
The strength of Yokohama tire corporation looks at the key aspect of its
business which gives competitive advantage in the market.
Its an international Japanese brand with manufacturing worldwide, they
have a very strong portfolio.
They have strong R and D Facility which has achieved a number of
milestones in using natural and renewable resources for raw materials.
They are in ISO 9001 and ISO 14001 company and have excellent
initiatives to be perceived as eco-friendly company with an aim to reduce
, reuse and recycle.
 Yokohama Tire Weaknesses
The weakness of a brand are certain aspects of its business
which are it can improve to increase its position further. Here are
some weaknesses of Yokohama tire corporation.
Market share not growing with more stiff competition
Less global penetration as compared to other brands
Yokohama Tire Opportunities
The opportunities for any brand can include areas of improvement to
increase its business.
They have growth opportunities in emerging economies like China
Brazil India Uzbekistan.
Their successful branding as the most eco friendly tire company may
take them a long way .
Opportunity to diversify more strategically to mitigate the risk of
putting the egs in one basket and advertising that also.
Yokohama Tire corporation Threats

The threats for any business can be factors which can negatively impact
its business. Some factors like increased competitor activity, changing
government policies , alternate products or services etc can be threats.
There is a stiff competition from national and international brands.
Introduction of other transport like metro, monorails, and local trains
keeping pollution hazards caused by combustion of automobiles fuels.
Volatility of raw materials prices
Fluctuation of exchange rates.
Yokohama Tire Competitors

➢ Goodyear
➢ Sumitomo
➢ Cooper Tires
➢ Michelin
➢ Bridgestone
➢ Pirelli
➢ Continental