Cochlear is one of Australia’s most successful ‘born global’ companies. Choose one overseas market and discuss how macro-environmental factors (otherwise known as PEST – political/legal/regulatory; economic; social/cultural; and technological) would impact Cochlear’s global marketing mix.

So far as we know Cochlear is one of Australia’s most successful ‘born global’ companies, with its core product of implantable hearing solutions. Still, it is unknown to the others how Cochlear works in Japan will. This research will be based on how the macro-environmental factors affect Cochlear’s global marketing mix. Cochlear can control their marketing mix, 4P based on the influence on uncontrollable factors like politics, economic, social, and technological. However, that’s not it there are more to covers when one doing global business.
First of all, let’s look at the legal and political environment over Japan. Japan foreign policy practice a high security policy upon any risk they may face even for direct over sea investment or setting up firms in the country, every international company were put under an observation period before they can actually pull their profit from the country and take it elsewhere. (Suzuki, 2011) It is believe that, such precaution taken was to avoid disruptive activity to their financial environment, creating massive disturbance to local market. Therefore, in order to set up firm to operate their business in Japan, Cochlear have to get permission from the government and sign legal papers of agreement upon not extracting profit to other country for a period of time. Which also implies that, the company have to invest quite amount of money into the country and construct long-term orientated planning before they can get their return on investment. One of the fortunate things is that, the country does not put a lot of restriction towards R & D development and its application in the practices of business, which sound good to Cochlear with the nature of medical field, to carry out their medical experiment and innovation research. (Pudelko, 2009) Under such influence, Cochlear may have to make their promotion effective enough to build interest and trust in locals, also setting up the image of good corporate practice to actually earn market share. Secondly, Japan have a rather sophisticated culture, by using research of Hofstede cultural dimension from Hofstede centre, we can make adjustment to how the company should carry out their business. As we know Hofstede cultural dimension consist of power distance, individualism, masculinity, uncertainty avoidance index and finally long-term oriented index. (Deresky, 2012) To function well, first Cochlear have to understand that the well know culture of hierarchical society of Japan, it is said that Japanese have a high conscious upon one’s hierarchical position. (Hofstede, 1983) Cochlear have to decide carefully on their strategy on doing promotion, for example sending an important positioned employee to attend important customers. To actually reach a final decision making, it will take longer time to process. Next, Japan are more likely to be a collectivistic society, they put a lot of attention in reaching harmony between group, however these have implies that Japanese people are more loyal to their social group as well as their company. (Hofstede, 1983) Cochlear can take such advantage to build community group of hearing disability peoples and help in distributing word of mouth spread among the others to get more market share. (Roger, 1997) One most important culture to learn over japan social norms is that Japan are the most masculine societies ever in the world, making extremely high competition to happen, they have a fanaticism upon excellence and perfection in almost every aspects of their life. (Hofstede, 1983) Which implies that, Cochlear must actively make themselves famous to grab attention of their target market, sending out message in how good their product and service are to the public and not acting conservative about others will learn and understand their product eventually. Furthermore, due to high uncertainty avoidance index among the older generation of the market, only believing product or services they normally used, Cochlear will have a hard time in penetrating the market fighting local competitors, to actually earn the Japanese people’s trust, they have to show result and create massive media approach to the public, especially all nation favourite, television broadcasting, increase all possible exposure. (Roger, 1997) From how Japanese people do their business we can see that they are more of long term oriented behaviour, they make sure their company were highly durable in any situation, not expecting quarterly profit but a steady growth instead. (Douglas, 2007) Cochlear have to be able to embrace such culture to their company in establishing in Japan, be patience enough to let their market growth before expecting to harvest profit quarterly. (Hofstede, 1983) Thirdly, to be honest, service and product from Cochlear, cost quite amount of money, ranging from 40k yen to 324k yen and this is not consider as a cheap offer to the public, more like a luxury already to some of the people. However, due to the economic structure of Japan, which consists of strong financial institution, which has the power to let the customer to use their pension fund under their management, as they are one of the biggest shareholder segments of all banks and large corporation, there are also little law to apply on one’s private pension fund management. (Ebbinghaus, 2003) As for most are to be middle aged or higher aged group who suffering from hearing problem which actually need the help of hearing aid, they are most likely to own such pension fund of their own. Cochlear can take advantage of this phenomenon in Japan and become partnership with local financial institution to let their customer get access to their funding for hearing aid support easier. What becomes most concern to Australian global company will be the high exchange rate between Japanese Yen and Australian Dollar. (Country Report, 2012) This implies that injecting capital to Japan has become much easier yet, the income or return of investment on Japan will take a longer time to become profitable. It is advisable to build up local manufacturing factories on cheaper labour country to assemble the product and export to japan to achieve greater cost saving. Finally, it will be regarding technological influence from Japan. Japan are well known to be adaptive and ready to accept different technology transfer from other country. (Suzuki, 2011) This has help Japan to be expanding and improving fast in their technology sectors. As post world war effect, Japan have diverge their focus into cultural and technology development, making them to become leading in technology and cultural influence now. (Pudelko, 2009) By having Cochlear to set up their firm over Japan, it is most likely to have local practitioners and expertise to join the firm in R & D process, with less restriction on this segment, it is helpful for Cochlear to get hold of new technological implication from the other companies product and help from local investor, in return making such changes to other division in other country. The Japan have a tradition in making group and conference regularly for higher skilled occupation, such as doctors and engineers, where they talk and publish their research or become partners for their next research. (Kathleen, 2004) Which Cochlear can get in touch with them and become one of them to earn the privilege to first hand technology release. In conclusion, although Japan have quite the potential of become making a good over sea market selection for Cochlear, there are quite amount of barrier to get over in cultural influence first. One thing that, most Asian country look forward too are long-term orientation practice, which not many western MNC manage to adapt to such culture and expect for quarterly profit, yet not stable growth in the market. Medical field is a rather risky sectors to penetrate even for country like Japan that willing to accept new technology, for one surgical or instrument failure will become quite an uproar due to collectivism of the Japanese people. To enter such market, Cochlear first have to be able to reach a cultural competency. Being successful in other country doesn’t mean the same in Japan, E-bay have look lowly on the culture of Japan in the past and in the end only able to penetrate the market join venture with Yahoo.jp at 2007 who have reach cultural competency and set up long-term plan, as E-bay escaped at the year 2002 after impatiently establish for 2 years at Japan.

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