Rakuten Japans Amazon Business model and Market Strategy日本亚马逊商业模式 avoiding plagiarism.docx

Rakuten Japans Amazon Business model and Market Strategy日本亚马逊商业模式 avoiding plagiarism.docx

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RakutenJapansAmazonBusinessmodelandMarketStrategy日本亚马逊商业模式avoidingplagiarism

Rakuten:

Japan’sAmazon

Preparedfor

MSIT3830E-Commerce&E-BusinessSpring2014

PatGillogly,Instructor

StudentName

DateSubmitted

Introduction

E-commercehasalreadybecomethemostpopularbusinesswayinthewholeworld.E-commercebreaksthestateboundariesandallowspeopletomakethetransactionsatanytimeinanywhere.Sincethee-commercemarketissoattractive,thee-commercefollowersfacetoughcompetition.Inordertostandoutinthiscompetition,eache-commerceproprietorcommitsthemselvestocreatinganewmodelofe-commerce.E-commercehasbeenappliedintomanyaspects,amongthesefields;onlineretailerisoneofthemostactiveareas.

Rakuten,Inc.isaJapaneseelectroniccommerceandInternetcompanybasedinTokyo,Japan.Amongitsnumerousonlineproperties,itsflagshipB2B2C（business-to-business-to-customer）modelofe-commercesiteRakutenMarketisthelargeste-commercesiteinJapan.Differentfromothermarketplaceswhichmaycompetedirectlywithsellers,Rakuten'smodelseekstoempowermerchantstodeliver"Omotenashi",aJapanesehighservicemindset,whichmeansthehospitality,tohelpsellerscreatelastingrelationshipswithcustomers.

Asweallknow,Amazon,anAmericanmultinationalelectroniccommercecompany,whichistheworld'slargestonlineretailer.Amazonisdefinitelythebestexampleine-commercebusinessasanonlineretailer.ItisnotsurprisingthatRakutenandAmazonhavesomanysimilarities.SinceRakutenhasbeenexpandingrapidlyinrecentyears,especiallyinoverseasmarkets,thereisnodoubtthatRakutenconstitutesAmazon'scompetitorinonlineretailfield.

Thispaperisfocusedontheuniquee-commercemodelofRakuten.Inthispaper,IwillintroduceRakuten'sbusinessstructure,itsservicesandtherelativefieldsthatRakutenhasbeeninvolved.What'smore,thecompetitivesituationistheotherpartthatwillbediscussedinthispaper.Inthispaper,IwillcompareRakutenwithAmazontofindouttheadvantagesofRakutenandhowitwouldgrowbetterinthefuture.

CompanyOverview

Rakuten,Inc.isoneoftheworld'sleadingInternetservicecompanies,providingavarietyofconsumerandbusiness-focusedservicesincludinge-commerce,travel,banking,securities,creditcard,e-money,e-book,portalmedia,onlinemarketingandprofessionalsports.ThecompanywasfoundedinFebruary1997.Accordingtoitsfinancialreport,Rakuten's2011revenueswereUS$4.7billionwithoperatingprofitsofapproximatelyUS$886M,suggestingan18.8%operatingprofitmargin.AsofDecember2011,ithasamarketcapitalizationofUS$13billionandsome10,000employeesworldwide.RakutenisexpandinggloballyandcurrentlyhasoperationsthroughoutAsia,WesternEuropeandNorthAmerica.Rakutenranksamongstthetop10InternetcompaniesintheworldalongwithGoogle,Amazon,eBay,etc.

CompanyDevelopment

Rakutenhasintroducedvariousbusinessestopursueempowermentsinceitsfoundationin1997.Duringthe15yearsofitsgrowth,Rakutenhavemadeseveralmilestonesinitsprogress.In1997-1999,RakutenbuiltupthefirstInternetshoppingmallnamedRakutenIchibawhenmanypeopledidnottrustonlineshopping.In2000,RakutenraiseditsawarenessbygoingpublicthroughanIPO.In2001,Rakutenfistraiseditse-commerceconsumermarkettoonetrillionyenandgotstartitstravelbusinessonline.In2002,Rakutenimplementedanewpricingsystemwithacombinationofmonthlyfixedfeesandcommissionsalestocreateanewwin-winbusinessscheme.In2005,Rakutenexpandedintothepersonalfinancingwhichwillleadtothegrowthofgripprofitabilityandusagefrequency.In2006,RakutenestablishedtheEco-SystemacrossthegrouptoconnectwithglobalrealbusinessesacrosstheInternetandalsointroducedaneworganizationstructurecalledGrowthManagementProgramforitsfurthergrowth.In2008,RakutenexpandeditsmarketfromJapantoAsia.In2009,RakutentookanewsteptowardtransformingitsbusinessfrombeingaJapanesestartuptoaglobalInternetservicescompany.In2010,Rakutenbecameintoatrueglobalcompany.

CompanyMissionStatement

RakutenwantstotransformsocietythroughtheInternetandcreateamoreaffluentworld.Inordertocompletethisgoal,Rakutensharestheideasof“Value”,“Mission”,and“Practice”.ThesethreeideasdefinetheRakutenemployeesasahighlymotivatedwinningteam,andaimtobecometheNo.1Internetservicescompanyintheworld.Accordingitscompanycontent,ithastheclearexplanationaboutwhatexactlythisthreeideasmeans.

Valuemeansgrowindependently,andcreatesabetterthesocietythroughtheirwork.Indeed,Rakutenhasthebeliefinthecapabilitiesofhumanbeingsandcommitmenttotheempowermentoftheircolleaguesandcustomers.MissionisquitesimplythatRakutenaimstochangeourworldandcreateamorewell-offsociety.PracticemeanstheunderstandingthecompanycultureofRakutenandactsonthecompanyculturetoenhanceskilllevels.Inotherwords,the“Practice”requiresemployeesactengageindailyactivitieswithasenseofresponsibilityandownershipoftheiractionsinordertomakeacontributiontotheirbusiness.

CompanyCulture

AsImentionedabove,Rakutenhasaveryuniquee-commercemindsetinconsumerserviceswhichcalled“Omotenashi”.ThismindsetisfocusedonthehospitalitywhichbringsagoodreputationtoRakuten.Actually,thisspritecomesfromthecompanycultureinRakutenwhichcalledRakutenShugi.

RakutenShugiformsthefoundationoftheRakutenandittellspeoplethewaytoworkregardlessofwheretheyworkorwhattheydo.ThecoreoftheRakutenShugiisRakutenBrandConcepts.RakutenBrandConceptsrepresentvaluesthatemployeesaimtorealizethroughthebusinessandotheractivitiesofRakuten.AlltheemployeesworkinginRakutenmustunderstandandidentifywiththeseRakutenBrandConcepts.

RakutenBrandConceptsincludesfiveperceptions:

“OnaMission”,“BehaveEthically”,“PreparetoSucceed”,“CompleteCommitment”,and“Solidarity”.Accordingitscompanyhandbook,Rakutengivesallitsemployeesacleardescriptionaboutthecorecultureofitsbrandcontent.

“OneaMission”isequaltotheempowermentthatRakutenbelievesthattheonlywayforabusinesstogrowoverthelongtermistocontributetotheworldsosignificantlythatpeoplecan’timaginelifewithoutit.Rakutenhasabeliefthatthemorepeopletheycanempower,themorecompletelytheywillfulfilltheirmission.

“BehaveEthically”meansthattheybelievesthatthemeansofpursuingamissionareasimportantastheends.Rakuteniscommittedtoconductingbusinesswithhonesty,sincerityanddignity;thereforeitiscriticalthatallRakutenemployeesalwaysbehavewithintegrityandhonor.“PreparetoSucceed”meansthatinordertohelpeachofemployeesucceed,RakutenhasestablishedthePrinciplesforSuccess.Bytakingtheinitiativetopreparethoroughlyandexecuteeffectively,andbypracticingthePrinciplesforSuccess,Rakutenensurethesuccess.“CompleteCommitment”meansthatRakutenrealizesthattheyfaceintensecompetition.Theimportanceoftheirmissionrequiresthemnevertogiveup.Whencircumstanceschange,theyneedtoadjusttheirplanssothattheycanstillaccomplishtheirgoals.“Solidarity”requiresallRakutenemployeestoworkasateam.Onlywhentheyworktogethercanthisactionbecomeanimportantsourceofstrength.

BusinessModel

BusinessStrategy

SpeakingofthesuccessfulbusinessstrategyofRakuten,weneedtomentionaboutitsoriginalbusinesssystemthatcalledEco-system.ThisbusinesssystemisthecorefunctionofRakutenandbecauseofthissystem,Rakutenhasgrownrapidlyandwillcontinuegrowing.

TheRakutenEco-systemwillenrichthelivesofallmemberswhouseourservices.Rakutenprovidesone-stopaccesstoawiderangeofservicesviatheInternet.OurmemberdatabaseservesasthefoundationforanenhancedmarketingstrategybasedontheorganiclinkageofallRakutenGroupservices,includinge-commerce,travel,portalsandfinance,undertheRakutenbrand.Wecallthisthe"RakutenEco-system."Withourcommonloyaltyprogramcalled"RakutenSuperPoints",membersareincentivizedtouseourmanyservicesinallaspectsofeverydaylife.Withtherecentadditionof"Eco",ourEco-systemhasextendedbeyondtheboundsoftheInternetworldandintotherealworld.TheRakutenEco-systemwillcontinuetoenrichthelivesofallmemberswhouseourservices.

TheEco-SystemofRakutenPicture1-Source:

GlobalExpansion

TobecometheNo.1InternetservicecompanyintheworldisalwaysthecompanygoalofRakuten.Undertheglobalization,RakutenhascaughtthechancetostartitsglobalplantomoveitsbusinessstepoutofJapan.Inordertocompletethislong-termbusinessstrategy,RakutenhaspopulateditsEco-system,whichisalreadygaininggroundinJapan,createamechanismtointegratevariousservicesonaglobalscale,andempowersocietythroughtheInternet.

BasedonitsGlobalExpansionplan,RakutenwillestablishtheEco-systemsallovertheworld,andthoseeco-systemswillfuse,unboundbybordersbetweencountries.Rakuten'sgoalistobecometheworld'sbiggestInternetservicecompany.Inordertorealizethis,itisnecessaryforthecompanytodevelopitsbusinessonaglobalscale.Currentlywiththerapidlydecliningbirthrateandagingpopulation,Japanfacesadifficultfutureinwhichitispredictedthemarketwillcontinueshrinkinginthelongterm.Consideringmattersonaglobalscale,however,rapideconomicgrowthcanstillbeexpectedin