TAILIEUCHUNG - CaseStudy20

This case examines how Scitex, a small Israeli hi-tech company, penetrated the Japanese market during the 1980s and 1990s. The case highlights not only the political and economic obstacles faced by Scitex, but also outlines the structure and unique business culture of the Japanese market, which foreign concerns, both big and small, often fail to fully factor into their marketing strategies. The case highlights what firms must do to adapt to overseas markets. It is of particular importance as it shows that, despite formidable obstacles, a small, foreign company can break into the Japanese market, which is notoriously difficult to penetrate. It. | Penetrating the Japanese Market The Case of Scitex Declan Hayes Reuven Jevze Case No. 0020 Copyright 2000 - Declan Hayes Reuven Jevze. This material is for the personal use of the individual purchaser or for reproducing on the specified course only. LtMllJGIII IlllUi-l IIV . 4------------ EJ UTTEHWORTH n 1 T W http Penetrating the Japanese Market The Case of S citex Declan Hayes Reuven Jevze Overview This case examines how Scitex a small Israeli hi-tech company penetrated the Japanese market during the 1980s and 1990s. The case highlights not only the political and economic obstacles faced by Scitex but also outlines the structure and unique business culture of the Japanese market which foreign concerns both big and small often fail to fully factor into their marketing strategies. The case highlights what firms must do to adapt to overseas markets. It is of particular importance as it shows that despite formidable obstacles a small foreign company can break into the Japanese market which is notoriously difficult to penetrate. It also indicates what firms must do to continue to survive in Japan s cut-throat commercial environment. Scitex first entered the Japanese market in 1980 when it opened a small branch in Tokyo first specialising in selling to and servicing its existing customers. The company initially evolved a successful strategy for the Japanese market and later restructured itself to meet the challenges of that market. However Scitex subsequently lost its dominant market position in its own very lucrative niche market. Scitex in Israel Efraim Arzi an Israeli businessman founded Scitex in 1968. The company originally named Scientific Technology Ltd. specialised in developing image-processing technologies for the vibrant local defence market. In 1971 the company s name was changed to Scitex Scientific Textiles as its main production lines were developing workstations for textile patterns. Today Scitex is an Israeli .

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