Many analysts see Softbank as a unique Japanese company. Under the leadership of Son, the company stands to reap huge rewards if markets do not tumble in 2001/02. In the short-term, Softbank can acquire all the benefits by being the market leader More acquisitions are expected in the Internet and mobile commerce.
Some analysts believe that Softbank plans on consolidating its position in the Internet market, It is also expected that Softbank will gradually reduce its holdings in the area of media, publications, and software distribution and will concentrate on the consumer and 13213 commerce. There is a huge growth potential expected in B2B commerce in the Western world, Of course, it may also carry risks because of competition and changing business markets. At the global level, the Internet and its technology-related markets are highly fragmented (The Economist, 1999; U.S. Department of Commerce, 1999.. Companies have to be vigilant to capitalize on the changing techitologies, growth, and customers. Softbank is well positioned to be part of the growing market. As Forbes (1999, p. 151. commented on Son's future plans:
Son wants to be number one in “eyeball traffic, finance, e-commerce and content'. .. not by controlling a single behemoth like Amazon.com, but by taking sizable stakes in top players in myriad niches.
Softbank's venture capital subsidiary, Softbank Technology Ventures, has established a 40,000 square-foot site in Mountain View, California (Fortune, 1999., but the dot.com downturn has impacted its growth. This facility is used as a “startup incubator” for promising Internet and technology firms (refer to Exhibit C5-3..
After having a portfolio of 600 Internet companies, Softbank plans to become a major player in every aspect of technology and e-commerce areas. This includes telecommunications, finance and banking, insurance, publishing, distribution, retailing, and other Web-based service products (refer to Exhibit C5-3..
In Japan, Softbank has formed a joint venture with NASDAQ. There is a huge potential in the NASDAQ-style market in Japan (see Exhibit C5-8.. According to one estimate, consumer savings and assets are used inefficiently because of the unavailability of U.S.-style individual investors. Softbank's initiative in this segment with NASDAQ is expected to bring big structural changes in the stock markets in Japan if economy improves in 2001/02 (Financial Times, 1999a-c; The Wall Street Journal, 1999b). In addition, Softbank plans to consolidate its position in Japan's online industry in virtually every sector; i.e., education, e-commerce (business and retailing), retailing, banking, finance, insurance and bond markets, distribution, and the broadcasting industry. Within the present circumstances, Softbank is one of the main Internet companies in the world. It will be interesting to see if Softbank can hold its position as the world Internet company or just be run over by another Softbank-type company. As Business Week (2001, p. EB23 & 24. calls Son “the last true believer in the Internet revolution” and states:
Undaunted by the tech slump, Softbank's Masayoshi Son is thinking bigger than ever; his master plan: to create a cyber conglomerate that will transform the Net into a truly global phenomenon. -
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