Conclusion
We are one of an export team of the SEALECT Tuna company sales’ branches owned by Thai Union Group Company. We are responsible for making an effective and efficient export plan for the company since our management has decided to export canned tuna to other countries. We sell canned tuna which frozen tuna is selected, defrosted, steamed, and filleted into clean portions before being canned / pouched / seal-contained as per customer requirements. We have analyzed the competitive advantage of the company by using SWOT analysis which refers to strength, weakness, opportunity and threat. The examples of strength are high ability to compete in market world, being reliable and expert in doing seafood business, certified production process according to international standard and having variety of product lines. The examples of weakness, opportunity and threat are as follows: There are not enough labors in industry, Consumers’ demand for seafood is increasing and The costs of raw materials are higher which is increased from such tuna, oil, and etc.
Next we are going to discuss about our target market. Our target market is working people who are between 15 to 64 years old in Japan because this group of people spend almost of their time for work but they still care about their health. So, our canned tuna could be one of the best choices for these target people. As we refer to the information about Japanese population, this group of people is the biggest portion of the whole population from 2006-2015 which is about 65.5% of all population. Japan market has high growth potential continually for exporting canned tuna from Thailand to Japan. Japanese people have high consumption of canned tuna and other processed products. However producers and manufacturers decided to reduce some parts of canned tuna production in domestically industries because of the cost of production. So, Japanese market will have more demand of canned tuna products. Moreover, as a result of the Free trade area of Japan-Thailand Economic Partnership Agreement or JTEPA., Japan agrees to reduce tariff for some types of products. For our products which are canned tuna products have no tariff anymore or at rate 0%.
After that we will take a look at Japanese environment. For the perspective of economy, Even its size is small, Japan is a major economic power in the modern world, it has the 3rd largest economy in the whole world behind only The USA and China. With respect to competitive environment, even Japan has such a competitive environment, the Japanese believe that intercompany dealings are favorable and often associate with competition on a personal basis. Next is about Sociocultural environment. Japan has developed keiretsu networks of suppliers and distributors. The keiretsu system is one of the most significant barrier for foreign companies who try to gain market share from Japanese markets. For technological environment, Japan as non-Western nation was the first one to take on board the technological and organizational advances of Western after the first industrial revolution has passed. The last one is Political environment. One of the most important differences between Japanese law and the law in many other countries are about the power of contracts. It is not necessary to consider Japanese contracts as binding. Moreover, it is based on trust (shinyô), they're often more short statements of mutual intent. For the market opportunity, we can look for opportunities to make our company grow by determining the market system which can be divided into three levels including intensive growth opportunity, integrative growth opportunity, and diversification growth opportunity. For our company, we will focus on the intensive growth opportunity regarding with three more types, such as Market Penetration, Market Development, and Product Development.
In this section, we will discuss about market strategy which contains mode of entry, logistics and shipping. For SEALECT Tuna Company, we choose to market our products in Japan by direct exporting by manufacturers' sales branches which are company-owned business operations. This method is about the marketing of goods produced in one country into another. Our company decides to send products to Japan by shipment. Japan are expert about how to ship products because they live in an island. After the merchandises arrive at the port of destination country on the required date, the Japanese agents will then start doing the distribution tasks. After that we let our agents send the merchandises to both wholesalers and retailers such as supermarkets and convenience shops.
After that we will have a look at Laws, regulations, and risks. As I mentioned before we choose to export by our sales’ branches. So, we need to prepare all documents required and also need to understand procedures, law, and restriction. For example, Invoice, Bill of lading, the certificate of origin, Packing lists, freight accounts, insurance certificates, Licenses, certificates required by laws and regulations other than the Customs Law. For the methods of payment, we use an Open Account method. This method is used for a foreign transaction. We realize that it’s convenient method of payment because our customers in Japan is well- established, and credible, has a long and favorable payment record. In the present, we have no need to pay for that anymore because of the Free trade area of Japan-Thailand Economic Partnership Agreement or JTEPA. Japan has reduced the tariff from 9.6% to 0%. Since our company decides to export products to Japan, we all know that we are going to face a number of risks. Facing greater competition and more strict rules and regulations about products and packaging is quite common. Moreover, there are also other risks that we often face including credit risks as I mentioned earlier and transportation risks and culture and language risks.