Page 53 - Kirin Holdings Teaching Note

BUSINESS DOMAIN PROFILE

Food & Beverages The demand for alcoholic beverages and non-
Domain alcoholic beverages is expected to decline over
the long-term as the population declines in Japan.
Prices are becoming increasingly polarized as
tastes become more diverse. Overseas
developing countries’ population growth is
expected to rise increasing demand for domain
economy products. In developed countries the
demand for domain premium products is likely to
rise and increase demand
In order to satisfy these changes Kirin has
developed a competitively advantageous brand
portfolio by strengthening connections between
consumers and the brands and strengthening its
“customer-centric marketing ability.”
Liquor consumption tax poses a continuing
threat.

Pharmaceuticals Aim of becoming a “Global Speciality
Domain Pharmaceutical Company” based on Rapidly
advancing businesses based upon global
development and launching of strategic products.
But the rate of market penetration is key.
Supply may be affected by either or both
technological and legal problems at
manufacturing or distribution points.
R&D costs are high whilst product
commercialisation is low

New Bridging Kirin is using organisational capabilities and
Businesses Domain resources from existing business domains to
establish and foster “New Businesses Bridging
Pharmaceuticals and Food and Beverages” From
these the company will develop its ‘health and
well-being’ and ‘improved quality of life’ products

Kirin is developing both internal and external partnerships
to support its strategy. To successfully do this it must see

sustained capital alliances as well as information and
technology alliances providing expected returns. As such