Between 1996 and 1999, Softbank was in a strong position to capitalize on its Internet and technology-related acquisitions worldwide. Since the dot.com downturn,
the company has encountered difficulties regarding its consumer markets and new technologies. Like other dot.com and Internet companies, Softbank has lost its market value significantly and the company was ranked 447 by Financial Times (2001. among 1000 companies worldwide. In the coming years, Softbank may face the following problems (refer to Exhibit C5 - 7.:
1. As stated earlier, Softbank is not a household name in the U.S. and Western Europe. The company is well positioned in Japan but carries limited clout in other markets.
2. As of 2001, Softbank has lost its market value by $188 billion and its share price has declined by 94 percent. On the other hand, the company continues to be the first-mover in the Internet areas. In 2000/2001, Softbank incurred some of its heaviest losses in ventures such as Webvan, l3uycom, and other consumer-related Net companies. In 2001, Softbank is concentrating on niche/unique segments in the area of wireless and other Internet technologies (Business Week, 2001; The Wall Street Journal, 2001a-c).
3. Compared with other Internet companies, Sofibank's financial position remains to be strong for future growth. As of 2001, the company has a $2 billion venture fund and has accumulated $10 billion in unrealized gains because of its early investments in the Internet area. In addition, Softbank maintains $ 1.6 billion in corporate cash and marketable securities (Business Week, 2001..
4. Softbank's strategy of seeking expansion in the Web infrastructure, portals/content, consumer e-commerce, and B2B commerce may backfire if markets do not recover. As of 2001, the company has a portfolio of more than 600 Internet companies worldwide (refer to Exhibit C5-3.. Softbank's corporate structure resembles a Keiretsu network, which may not bring lucrative opportunities if markets go down. On the other hand, as a first-mover company, Softbank's diversification strategy has been successful. As of 2001, Softbank continues to amass massive fortune by having partial and fdll ownerships in technology companies worldwide
5. Like its earlier initiatives, Softbank's future growth strategies are expected to revolve around three information asymmetries:
(a) value-chain asymmetry, which may helpcoordinate the information industry (between suppliers and buyers); (b) financial asymmetry, which may leverage procurement cost differences; and (c) technology asymmetry, which may leverage technological gaps (Lynskey and Yonekura, 2001, pp. 10 - 12..
6. According to Son, in the coming years, Soft- batik's core competence will solely rely on the Internet sector and will continue to acquire companies from the areas of infrastructure, hardware, content, commerce, and distribution (Lynskey and Yonekura, 2001, p. 12..
GLOBAL STRATEGIES AND PROBLEMS AREAS IN 2001/02 : A First Time Expatriate is Experience in a Joint article from Business Technical Catagory GLOBAL STRATEGIES AND PROBLEMS AREAS IN 2001/02
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