The Expansion of Nakamura Lacquer Company Business
Company has no business outside of the Japan and to be a global brand, so it’s require to expanding Nakamura Lacquer Company business outside Japan. U.S. could be big market for Nakmura “Chrysanthemum”product. Accepting offer from Semmelback, Semmelbach and Whittacker, Chicago Company achieve its goal to make more profit and to be a brand value outside of Japan. Executive summary
The Nakamura lacquer company of Kyoto, Japan making lacquer for the daily table use with Chrysanthemum brand became bestselling brand in japan . But practically Nakamura had no business for American tourist.
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Nakamura received two good offers from United State companies. Which were very highly recommended with the very highest and best credential.
First offer: - National China Company- with brand “Rose &Crown” Which is the largest Manufacturer (Company A).
Second offer: - “Semmelback, Semmelbach and Whittacker, Chicago “which is the largest supplier in the State (Company B).
PROBLEM STATEMENT:
Mr. Nakamura has to make a decision whether he should go with first offer or second offer.
STATEMENT OF OPTIONS:
Mr Nakamura has three options;
(1) He should sign a deal with company A
(2) He should sign a deal with company B
(3) He should continue his business and expand in that market without sign a deal.
CRITERIA FOR EVALUATION:
1) Brand value
2) Risk associated with deal.
3) Time duration of the contract.
4) Order quantity.
5) Initial investment in deal/cost.
6) Profit from the deal.
EVALUATION OF OPTION:
If he make a deal with company A
• There is no global representation of his brand.
• He has to supply with Rose and Crown trademark and he can’t sell with his own brand Chrysanthemum. So after the end of 3 year Mr. Nakamura's company might have to restart all business
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