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Executive summary

For this report, the organization I chose is Fujifilm Holdings which produces consumers products as well
as business products. For the consumers’ products, they produce different types of camera as well as
binoculars and skincare. On the other hand, they produce medical, industrials and biomaterials for the
business product. In this report, I’ll be researching and explain about the consumers’ products of how
Fujifilm Holding will apply the marketing strategy in the market of Japan. In the 1 st part of the
assignment, I will provide the introduction, background of Fujifilm Holding including visions, missions,
objectives and the market of Fujifilm. In the 2 nd part of the audit, I’ll explain briefly about the Macro
environment which PESTLE analysis will also be mentioned. Moreover, I will also provide the analysis of
Fujifilm’s business performances in Japan. Customers analysis as well as competitor’s analysis and SWOT
analysis will also be explained in the 2 nd part of this assignment. Last but not least, for the 3 rd part of the
assignment, I’ll be explaining about what Fujifilm will be carrying out in 1-year time in the future. I all
explain the facts depending on porter’s generic strategy and Ansoff’s matrix. For the last part of the
audit, I will provide a conclusion of this assignment and how it will impact me in the future.
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Contents
1.0 Introduction...........................................................................................................................................5

1.1 Fujifilm’s background.........................................................................................................................6

COMPANY PROFILE OF FUJIFILM.........................................................................................................6

Fujifilm’s Vision....................................................................................................................................6

Fujifilm’s Mission.................................................................................................................................7

Fujifilm’s Objectives.............................................................................................................................7

1.2. Market of Fujifilm.............................................................................................................................7

Market share of Fujifilm......................................................................................................................8

2.0. Findings/analyses.................................................................................................................................8

Introduction.............................................................................................................................................9

2.1. PESTLE analysis for Fujifilm...............................................................................................................9

2.2 Micro environment..........................................................................................................................11

2.2.1 Market analysis of Fujifilm’s business performances................................................................11

Operating Income of Fujifilm Japan...................................................................................................12

2.2.2 Customer analysis.....................................................................................................................12

Competitor analysis...........................................................................................................................13

2.2.3 Competitors’ array....................................................................................................................14

Perceptual Map of Fujifilm....................................................................................................................14

2.3 SWOT analysis..................................................................................................................................15

3.0 Developing Fujifilm’s strategic priorities for the upcoming years........................................................16

4.0 Conclusion...........................................................................................................................................18

5.0 References...........................................................................................................................................18

Works Cited...............................................................................................................................................18
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1.0 Introduction
This assignment is written to describe and analyze the market of the Fujifilm in Japan depending on the
micro, external as well as SWOT analysis.

Organization: FUJIFILM

Market: Japan

Industry: IT & Electronics

The capital yen of the organization is 40 ,363 million Yen - March 31, 2020, the total numbers of
employees is 73,906 - As of March 31, 2020 and the revenue of Fujifilm is 2,315.1 billion yen (FY2020/3).
[ CITATION Suk20 \l 1033 ]

1.1 Fujifilm’s background

COMPANY PROFILE OF FUJIFILM

Fujifilm started their business in the 1970s, focusing mainly on the product of cameras. Working through
the agencies locally, Fujifilm get more understanding of the local market needs and expanded sales
channels which led to the strengthening of sales structures for the medical, imaging and graphic related
products. Additionally, Fujifilm also offers material and healthcare solutions like instrumentation and
medical system and graphic arts materials, pharmaceuticals, life sciences merchandise [ CITATION
Kom15 \l 1033 ].

Fujifilm also has its presence mainly in Japan and countries of the Asia, Americas and Europe and
operates its R&D hubs in Japan and therefore also the North American nation.

Head office: Midtown West, 7-3, Akasaka_9chome, Minatoku, Tokyo 1070052, Japan

Website: https: // www.fujifilm.com /

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Slogan: Value from innovation.

Fujifilm Holding’s Vision

Our Vision is determined to remain a leading company by boldly taking up the challenges of developing
new products and creating new value.

Fujifilm Holding’s Mission

Our Mission is to use leading-edge, proprietary technologies to provide top-quality products and
services that contribute to the advancement of culture, science, technology and industry, as well as
improved health and environmental protection in society. Our overarching aim is to help enhance the
quality of life of people worldwide.

Fujifilm Holding’s Objectives

 To get 20 percent reduction in usage of energy (sales related) at manufacturing and non-
manufacturing sites by the end of 2021.
 To get power consumption in standby of 0.1 W or even lesser for all the products by the end of
2021.
 To increase the sales of products by 20% by the end of November 2021.

Main Competitors: Sony, Canon, Nikon and Panasonic.

The total numbers of employees are 73,906[ CITATION Suk20 \l 1033 ].

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1.2. Market of Fujifilm.

The market I am writing in is Japan market.

On the graph is shown that the growth of the Fujifilm is 2.81% in the market of Japan. [ CITATION
Cra20 \l 1033 ]

Market share of Fujifilm.

For the digital market share of the Fujifilm, Canon is the top of the market share where Fujifilm is ranked
at the 4th place in stable.

[ CITATION Art20 \l 1033 ]

2.0. Findings/analyses
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Introduction
This part of the assignment is written to explain the PESTLE and SWOT analysis as well as how customers
react to Fujifilm comparing to the competitors in the market.

2.1. PESTLE analysis for Fujifilm.

Political
Firstly, for the political in Japan, it will make and create a better relation with international which will
bring positives impacts to Fujifilm as we will be able to extend more of our franchises and will be able to
attract more investors for the organization. Japan is a country with a business economic freedom world
ranking of 30/180 countries with a score of 73.3 [ CITATION Her20 \l 1033 ]. As there are not very much
striated rules, their will be more foreign investors to invest in japan. Lastly, Japan is already a developed
country so and Fujifilm has already taken a stable position in the market of Japan.

Economic
Firstly, GDP increases 2.17% from 1.65% in 2016-2017. Increase is set to grow to 0.33% in 2018-19
[ CITATION Wor20 \l 1033 ]. The increases of GDP rate will bring positive impacts to the organization as
the Japanese market will be in much optimism. Secondly, for the currency exchange is rate, $1= 104.195
Yen[CITATION rat19 \l 1033 ] and the decreased of exchange rate will also affect us while buying raw
materials we need. Lastly, the prices of raw materials are not stable which might either be falling or
rising of prices which will impact us while purchasing them.

Social
For the social factor, Japan is ranked 10 with the most population around the world with the score of
127,040,000, 1.75% of the world [CITATION wor20 \l 1033 ]. Among all the population of japan, the
Japanese language is spoken by around 99 percent of the Japanese population [ CITATION Smi04 \l
1033 ]. So, Fujifilm based on Japanese market will have to insert the Japanese language in the programs.
Moreover, the brand image of an organization is also a factor as the majority of Japanese people will
choose the brand according to the brand image. There are also factors such as CSR activities in japan
which Fujifilm will invest in regional and local projects bringing CSR to life in the communities it mainly
depends on.
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Technology
Japan is also a country with most technologically advanced in the world. Around 79% of the populations
in Japan use smartphones which increased about 50% compare to 2015 [CITATION Dep20 \l 1033 ].
Good impact as we will be able to promote our products through social media. Moreover, the machinery
in Japan is always up to date and it will bring positive impacts to us if we are purchasing the machinery
essentials for the productions.

Legal
Working hour of employees (8hours/day, 6 days/week, not more than 4 ours overtime) [ CITATION
Cha17 \l 1033 ].
And minimum wages in Japan increased to 902 Yen per hour in 2020 from 901 Yen per Hour in 2019.
[ CITATION Lab20 \l 1033 ] and Japan has legitimate control and principle like other business. It brings
good impact to us as it will solves the unwanted conflicts between employees and easier to make shift
to the duty of employees by paying 902 Yen/hour or more per day.

Environmental factor
Japan is one of the countries which has clean and responsible environment but there are also some
issues that Japan is facing. Out of all the issues, waste management is one of the largest environmental
issue in Japan. Waste production of modern industrial activities is high and japan is planning to reduce
the waste and get them under control [ CITATION Rah20 \l 1033 ]. For this, we will have to be very
careful with our productions to be less polluted and wastage as possible as it will be bad for the
environment. Moreover, Japan is also a country which got affected by natural disaster like Tsunami and
earthquake [ CITATION Fan17 \l 1033 ]. So, for the production, we will have to be very careful of where
we are capitalizing the factories in order to prevent unwanted natural disasters as well as making our
products weather sealed.
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2.2 Microenvironment

2.2.1 Market analysis of Fujifilm’s performances in Japan.

In the second quarter of the year ending March thirty one, 2021, the Fujifilm cluster (the Group)
recorded 541.1 billion Yen in consolidated revenue (down 9.3 percent from an equivalent amount of the
previous financial year [ CITATION Fuj20 \l 1033 ].

Operating Income of Fujifilm Japan

Operating income is 36.1 billion Yen (down 34.3 percent from identical amount of the last financial year)
because of the impact of the COVID19 pandemic and therefore the appreciation of the yen [ CITATION
Fuj20 \l 1033 ].
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2.2.2 Customer analysis

According to [ CITATION Bha18 \l 1033 ], Fujifilm’s marketing strategy is the combination of

psychographic, geographic and demographic segmentation strategy. Segmentation are Variables like
people, age, region, financial gain cluster and behavior perspective are a number of the attributes
thought of by the company for segmentation.

Customer Age Gender Location Lifestyle Interests

Variable 15-60 All Every Photographer, Photography

years Genders location Hobbyist

For the customer analysis, Fujifilm mainly aim for the customers who are interested in digital and
photography as well as videography. As everyone can be interested in photography, age won’t be a limit
of purchasing products of Fujifilm but will mainly aim for the customers with age range of 15-60 years
old. Additionally, for the gender, it is not limited as everyone of every gender has their right to purchase.
For the market of Fujifilm, the products are worldwide which they have franchise all over the world and
will be able to purchase easily in every country. For the lifestyle and interests, Fujifilm will aim for
customers who has their interest in Photo/Videography as their hobby.

Competitor analysis

The Companies operating within the business competes based on the factors like technological
advances, innovative style, convenience in the market, rating and integration(backward) with the
suppliers. Fujifilm have the sturdy market shares in the Asia Pacific regions in most of the companies
they operate.
Fujifilm competes with other companies like Nikon, Canon and etc.[ CITATION Bha18 \l 1033 ].

Canon is a large company but there is also some weakness in them. While comparing to the color of the
photo shot, professionals said that the color of the Fujifilm cameras are the best in the market compare
to other brands like Canon and Nikon. However, Canon has their strength videography. Moreover,
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Canon’s marketing team leader is Tracy and leader ship leader is Paola and they have a pretty huge
marketing team. For Nikon, their CEO, who is the leader is Kazuo Ushida.
Yearly growth of Canon

[ CITATION Can19 \l
1033 ]
For the yearly growth, Canon has the highest % in 2015 and the lowest in 2016.

Yearly growth of Nikon

[ CITATION Nik19 \l 1033 ]

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2.2.2 Competitors’ array

Success Weightin Competit Competitor Competitor( Competitor Your Your
Factors g or (1) (1) 2) (2) Organization Organizatio
Name: Name: Name: Name: Name: n
Rating Weighted Rating Weighted Rating Name:
Weighted
Product 0.4 Canon 3.4 Nikon 3.2 Fujifilm 3.2
quality 8.5 8.0 8.0
Brand 0.3 9.0 2.7 8.5 2.55 8.5 2.55

Image
Customer 0.2 8.5 1.7 8.0 1.6 8.5 1.7

service
Price 0.1 9.5 0.95 8.5 0.85 9.0 0.9

Total 1.0 8.75 8.2 8.35

For the competitors array shown in the above table, Canon is the company with the highest score with
8.75 in total while Fujifilm is in the second place with 8.35. For Nikon, the total score of the results is not
so different from Fujifilm with the score of 8.2 in total. Overall, Canon’s marketing team is really big and
they are a worldwide digital camera company.

Perceptual Map of Fujifilm

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Paid price

Brand Image

For the perceptual map of Fujifilm, Fujifilm is standing in between of Canon and Sony as the quality
received by the customer is high so the priced that has to be paid is also high. However, Sony stands in
first place with highest price while canon stand in the place with highest brand image among 4 of the
organizations. Nikon also has high brand image equally to Sony and Fujifilm with less paid price
comparing to the other three.

2.3 SWOT analysis

Strength Weakness
 Strong Research and development in the  Limited Liquidity
market.  Need more investment in new
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 Costs are efficient technologies.

 Business performance in healthcare as  Growth weakness in the Japanese
well as digital products market.
Opportunity Threat
 Very Positive outlook for semiconductor  Economic condition in Japan is weak.
market  Trends indicate structural declines in
 Growing adoption of cloud computing document technology.
boost the company’s revenue generating  Competition is intense in the market.
capabilities
[CITATION Cor20 \l 1033 ]

3.0 Developing Fujifilm’s strategic priorities for the upcoming years.

For the developing of the market of Fujifilm, we are going to use the porter generic strategy based on
Ansoff’s matrix.

What is porter generic strategy?

The Generic strategies will be used to determine the direction (strategy) of your organization. There are
4 strategies that can be used; differentiation focus, cost leadership, cost focus and differentiation
[ CITATION Kos07 \l 1033 ].

For the Fujifilm, cost leadership is also essential as it will preserve the Japanese market leadership
position through value chain management which is efficient. This will also allow Fujifilm to expend the
market share by targeting the mid-range class which will make a great proportion of the overall
consumers of the product market mix in variant countries. In the market of digital products, the majority
of the consumers are middle class which will place high importance to the pricing factor. As an impact of
this, it is most likely to used this strategy to fulfill the needs of the consumers.

For the market penetration for Fujifilm, the organization is stand in position of 4 th place in the market of
japan comparing to the competitors in the market. So, we will have to make the sales of the product to
increase within the current customer base as well as attracting new customers. Market penetration is
also the important intensive growth strategy carried out by Fujifilm to complete the objectives for
growth. In order to penetrate the market, Fujifilm will offer discounts and deals variously as well as run
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through some promotional campaigns. Moreover, Fujifilm will also offer the product in new packaging
that is attractive to achieve the growth of sales within a year.

For the product development for Fujifilm, we will offer new products that is basically close to the
products in the current product line. We will also have to listen to what customers are asking for and
how will we make their desires complete. For the current market’s needs, consumers are asking for a
camera with good price to performance, so we’ll be making a high range camera with the price of mid
ranges’ in order to get more sales by product development in 1 year.

For the market development, Fujifilm will be exploring and entering to the new markets. As Fujifilm is
already a well-known brand mainly around Asia and US, we will be aiming our new market to the
countries of Europe. As we want our products to be known in the new markets, we will have to make
our products’ prices reasonable as well as making marketing campaign by using celebrities’ presence as
well as famous photographers.

For the diversification, Fujifilm will research and expend new products in the new market. The company
will also be avoiding risky experiences in the unknown new market. Rather, Fujifilm utilizes the brand
awareness and strength to launch connected products within the business. However, there are some
samples of Fujifilm unrelated diversification are providing merchandise from shirts, pens to even glasses.
Moreover, in response to the growing criticism by environment protection teams, Fujifilm tried to
protect the loss from declining sales by investment in inexperienced business practices and creating
business partners with the organizations with good brand image.

4.0 Conclusion
In conclusion, there are some good impacts as well as bad impacts doing the business in the current
market as well as expending the market in the unknown regions. However, this assignment let me learn
about how marketing strategies work in order to increase the sale growth for an organization and how
they are carried out by the organizations to gather and research the related data of the organizations.
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5.0 References

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