Running head: REVITALIZING HAICHIDAIME
Riceis synonymous with South Asia nations including Japan. However, theemergence of effective communication channels and internationaltransport systems has fostered globalization. Through globalization,the Japanese citizenry learned of western eating habits thatsignificantly altered rice consumption in the country. The paperpresents a brief case study on Haichidaime,a long-serving firm that aims to encourage nationals to embracetraditional Japanese rice over western foods.
Technologyas an Element that Affects the Business
Japan’sunique capacities to integrate innovation towards production of newtechnologies, system processes, and deep understanding of consumerperceptions makes it one of the most recognizable nations worldwide.Japanese citizenry remains one of the most adept to applications ofnovel technological innovations in the modern times. HashimotoTakashi, Haichdaime’s leader can employ technology to enable thecurrent generation of Japan’s youth to adequately equate riceconsumptions with traditional cultural identities.
Themodern youth in Japan has come to a point where western cultures arebecoming too common and are now searching for a unique identityrelative to the westernized world (Lee& Shin, 2015).Through technology, Mr. Takashi’s Haichdaime can comprehensivelyreach out to this Japanese demography to revitalize theeighth-generation family entity while also supporting thepreservation of a distinct cultural lifestyle. Many of the islandnation’s youth are opting to relate with traditional Japanesecultural practices and heritage. However, the only manner throughwhich to gain an understanding of younger populations is throughcontemporary technology avenues.
Onlineshopping has transformed how sellers associate with consumers. It isinnovation allowing for a digital market place where sellers caninvest in gaining valuable customer data towards meeting particularpreferences. Given that Takashi is well versed in the traditions ofthe age-old rice industry in the country, his Haichdaime canincorporate traditional practices into the online market dynamics(Lee& Shin, 2015).For instance, the birth of any newborn baby in Japanese culture is ahighly-celebrated event. In ancient Japan, it was common for babiesto be nursed with rice milk (Flynn,2014).People consider rice a vital food soon after the birth of a newchild. Where people make online purchases aimed at sendingcongratulatory gifts to families celebrating a new born, Takashi cantake the arising entrepreneurial opportunity by invoking traditionalgestures of goodwill to the family’s friends (Lee& Shin, 2015).After a baby was born, the family with the new baby would in mostcases send a gift back to a friend which was a bag or rice weighingthe same in weight as the newborn. Haichdaime can incorporate othersimilar Japanese traditions to gain customer loyalty and byextension, tapping into a distinctive consumer market, the uppermiddle class.
Diversificationis a unique tactical strategy that the Haichdaime can invoke towardsincreasing consumer loyalty as well as keeping traditional Japanesemaxims alive. The Kimono as a cultural garment in the country hasbeen shunned in preference for western clothing (Lee& Shin, 2015).There is currently a resurgence of interest among the upper middleclass citizenry in Japan regarding a cultural identity. Kimonos arehowever, normally adorned during festivals but are also perceived asa special way to wrap gifts.
Kimonosare a distinct part of the heritage of Japanese people. The riceindustry is similarly regarded as an imperative element of thecountry’s economy. By incorporating the two unique products underthe Haichdaime business banner, it is possible for Takashi to ensureit is revitalized and remains a going concern for a couple moregenerations to come. As operating environments change, forwardlooking leaders should adapt as fast as possible to capture changingtrends, incorporate them into normal business practices to ensureprofitability into the future.
Technologyas a macroeconomic factor will continue to affect the industrygreatly. In this regard, businesses should adapt comprehensivestrategies that aim to diminish the hindrance placed by thederegulation of the sector. The approaches should includeinnovativeness, economies of scale, collaborations, and engagingforeign markets.
Flynn,D. (2014). Tradition and modernism: Sustainable rice culture. Studiesin Asian Social Science, 1(2),1.
Lee,Y. S., & Shin, W. J. (2015). Marketing tradition-bound productsthrough storytelling: a case study of a Japanese sakebrewery. ServiceBusiness, 9(2),281-295.
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Thecurrent factor and one that will remain in the future in theoperating environment and will determine the future of Haichidaimerelates to changes in customer preferences. It is important notingthat the change in consumer preference is partly influenced by legalfactors. According to Hiriyappa(2009), legaland regulatory factors are external factors that a business lacks theability to control, rather a company should streamline to the legaland regulatory environment in order to remain operational. Legalfactors thus serve as a determining element in the success of anyorganization. Haichidaime business, currently under Hashimoto Takashifor the past period of over three decades has performed poorly forits failure to react positively to the introduced regulatorymeasures. The changes began in 1993 after deregulation of ricefarming as well the distribution. Following the regulatory changes,imported rice in the Japanese market started dominating the ricemarket in that it sold at lower prices. As a result, Haichidaime andother players that focused on high-quality Japanese rice havecontinuously lost market to the new imported cheap rice.Additionally, as a result of changes in diet together with anabundance of food, the past two decades has seen rice consumption inJapan record a significant decline. Therefore, it is indicative thatcustomer preferences are changing with time. The fact that thequality Japanese rice is no longer a customer’s choice in thecurrent market signifies that Hashimoto Takashi must strategizedifferently in order to revitalize his rice store business or riskclosure.
Basedon the presented analysis, there are three distinct tactical as wellas strategic recommendations that Mr. Hashimoto Takashi shouldundertake. Firstly, Mr. Hashimoto Takashi should change thebusiness’s model and strategy of focusing on high-quality Japaneserice. The need for making such change results from the fact thatmodern customers in the Japanese market are no longer interested inhigh quality, but rather by prices. The introduction of cheap riceand the way it has attracted significant consumption patterns is anindicator that quality is no longer a concern. As such, Mr. HashimotoTakashi should focus on exporting low price and low-quality rice asit is the product on demand in the modern Japanese market. Secondly,Mr. Hashimoto Takashi should put in place a team tasked with the roleof conducting research and development for the business in order tounderstand possible consumer future trends. As indicated in theanalysis, changes in consumption patterns of consumers are evidencedin the Japanese food market. Other than consumers switching fromconsuming high-quality Japanese rice and turning to lower qualitycheap rice, consumers have turned to other food components.Therefore, the research and development team that Mr. HashimotoTakashi will put in place will focus on crucial consumer consumptionpatterns in the future in order to help the business to strategize byproviding customers with the food products they need. As a result, hewill enable Haichidaime business not only to remain competitive butequally ensure sustainability. Lastly, Mr. Hashimoto Takashi shouldchange his business model to include other dietary products on demandin the Japanese market. Unlike in the past where rice remained thestaple food for Japanese community, there is a change in consumptionpatterns influenced by the abundance of food as well as diet changesrequiring the business to respond to these changes equally.
Hiriyappa, B.(2009). Organizationalbehavior.New Delhi: New Age International.
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