Company Plans and
Global Opportunities
Unlike Microsoft, Dell, AOL, Amazon.com, Intel, and other high-tech and c-commerce companies, Softbank has not been able to become a household name in the Western world. Most of its markets and customers are located in Japan and Asian countries. On the other hand, Softbank ranks as a global player in the Internet and c-commerce. In 1999, Softbank's initial investment of $358 million in the Internet and technology-related industry has grown to a value of $10 billion (Far Eastern Economic Review, 1999.. Most of Softbank's visibility lies in Japan where it has changed the traditional Japanese corporate culture. Unlike the American business environment, the Japanese market is limited in venture capital firms. Analysts believe that Japan lags about 4 - 6 years behind in the Internet and c-commerce areas. For this reason, Softbank represents one of the few Japanese companies having significant entrepreneurial potential and future growth prospects. Very few Japanese companies are well positioned to capitalize on the changing Internet and e-commerce industry.
Unlike other Japanese Internet and service companies, Softbank has acquired companies that are complementary in nature and may carry good growth potential in the future. Since its inception in 1981, Softbank has become a small conglomerate having its influence in many high-tech and Internet sectors. Although the Internet and its related industries are still in their infancy in Japan and other developed markets of Asia, Softbank has fully exploited these markets. This is the main reason why Softbank captured a significant market share and changed the rnainstream Japanese corporate culture. Son's entrepreneurial style made many inroads in the Japanese corporate environment. Son, the main pace setter in the Internet industry, has forced other competitors to follow him. The change process pursued and managed by Softbank represents a classic textbook case study. As Brown & Eisenhardt (1998, pp. 4 - 5. states on managing the change process:
At one level, managing change means reacting to it. - . - But managing change also means anticipating it. . . Finally, at the highest level, managing change is about leading change. By this we mean creating the change to which others must react. It means launching a new market, raising the industry standard of service, redefining customer expectations, or increasing the pace of industry product cycles. It means being ahead of change or even changing the rules of the game. At the extreme, the best performing firms consistently lead change in their industries.
Softbank fits perfectly in the change process stated by Brown & Eisenhardt (1998. by not only becoming the industry leader but also forcing others to make changes.
Many analysts believe that in the coming years, Softbank's markets will grow significantly. In the areas of product development and worldwide brand visibilfly Softbank holds a good position to capitalize on its learning curve and knowledge-related areas. Some of Softbank's investments in the Internet companies doubled in the last three years and have brought massive fortune to Son (refer to Exhibit C5-6.. Selected comparables include Yahoo, Yahoo Japan, E-Trade, ZiffDavis, ZDNet, and Ceo Cities. In June 1999, Softbank announced a joint venture with NASDAQ to initiate the process of setting up the NASDAQ-type stock market in Japan (The Wall Street Journal, 1999b). In September 1999, Softbank announced another strategic alliance with Microsoft and Global Crossing to provide telecommunications services in the Asian markets. Global crossing will take 93% equity in the venture whereas Softbank and Microsoft each will invest 3.5 % in the venture. Softbank and Microsoft may increase their stakes to 19%
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