Google in Japan: Their Successful Japanese Market Entry Strategy
Today, Google is a globally recognized brand known for its wide range of products, cutting-edge applications, and constant pushes in the boundaries of technology. In this article, we’ll take a look at Google's Japanese market entry strategy.
The initial days of Google
Google had very humble beginnings. Started as a research project by two Stanford students, Larry Page and Sergey Brin. Their project, initially called "BackRub," focused on developing a search engine that ranked web pages based on their relevance and link structures. While there were many search engines out at the time such as Yahoo!, there was something that was going to set their search engine apart. This feature was their PageRank algorithm, which provided more accurate and useful search results compared to existing search engines. By 1998, they had their famous garage launch, marking the beginning of a technological revolution.
Throughout the years, Google quickly gained popularity due to its efficient and user-friendly search engine. The company didn’t stop there, as they quickly sought to diversify its services over the years. Introducing products like Google Maps, Gmail, Google Drive, as well as the Android operating system. With every new application or feature they developed, another brick in their ecosystem was being added. As time went on, Google gained more and more users, solidifying Google's place in the tech industry and making it an integral part of everyday life for millions worldwide.
Google’s Entry into the Japanese Market
Japan with its advanced technology sector and large population of tech-savvy consumers, was a natural target for Google's global expansion. However, entering the Japanese market was not without challenges. The country is known for their innovative solutions and are always at the forefront at developing new technology. While at the same time, on the opposite side of the spectrum, many businesses are slow to adapt and rely on old technology and processes to maintain operations.
Another issue is that Japan already had well-established local competitors such as Yahoo! Japan and NTT DoCoMo, which dominated the search engine and mobile markets, respectively. This dichotomy and competition posed a challenge for Google, while developing their plans for expansion.
Google officially entered the Japanese market in 2001, setting up an office in Tokyo. The initial focus was on localizing their search engine to cater to Japanese users. This involved adapting the interface to support the Japanese language and incorporating local content and services to make the search engine more relevant to Japanese users. Localization was crucial as it helped Google gain traction in a market where language and cultural nuances play a significant role in user experience.
Strategic Partnerships and Acquisitions
To strengthen its position in Japan, Google pursued strategic partnerships and acquisitions. One notable partnership was with NTT DoCoMo, Japan's largest mobile operator. In 2006, Google and NTT DoCoMo announced a collaboration to integrate Google's search engine and services into NTT DoCoMo's mobile internet platform, i-mode. This partnership allowed Google to tap into NTT DoCoMo's vast user base, significantly increasing its reach in the Japanese mobile market.
Another significant move was the acquisition of Japanese internet company, DeNA, in 2004. DeNA was known for its popular mobile portal site, Mobage-town, which offered social networking and gaming services. By acquiring DeNA, Google gained access to a large and engaged user base, enhancing its presence in Japan's burgeoning mobile internet sector.
Localized Products and Services
Understanding the importance of localization, Google tailored its products and services to suit the Japanese market. Google Maps, for instance, was adapted to provide detailed maps of the complex rail network that Japan is known for. They have also integrated many local business listings in their maps to tailor to the Japanese userbase. In addition to the aforementioned adaptations and features, Google Japan also compiles live events such as local news aggregation and real-time traffic updates, making the service more relevant to Japanese users.
Google also recognized the importance of mobile technology in Japan. In an era where smartphones are becoming a societal staple, the company focused on optimizing its services for mobile devices to ensure that Japanese users had a seamless experience on their smartphones. This included developing mobile apps for Google Search, Google Maps, and other services, as well as optimizing their websites for mobile browsing.
This localization has also trickled down to assist foreigners as well. Their integration of the train system in Google Maps has a long lasting impact for tourists, making one of the most advanced and complex train networks in the world easily traversable to the common tourist.
Google’s Commitment to Education and Research in Japan
In addition to its commercial activities, Google has shown a strong commitment to education and research in Japan. The company has partnered with Japanese universities and research institutions to promote technological innovation and digital literacy. One such initiative is the Google AI Impact Challenge, which supports projects that use artificial intelligence to address societal challenges. Through this program, Google has funded various Japanese projects focused on areas such as healthcare, disaster response, and environmental sustainability.
Google has also been involved in initiatives to improve digital skills and literacy in Japan. The company launched the "Grow with Google" program, which offers free training and resources to help individuals and businesses enhance their digital skills. This program has benefited thousands of Japanese students, professionals, and entrepreneurs, empowering them to thrive in the digital economy.
Google’s Contributions to Japan’s Digital Transformation
Google has made significant contributions to Japan's digital transformation. The company's products and popular services have played a crucial role in driving the adoption of digital technologies across various sectors. For example, Google Cloud has been widely adopted by Japanese businesses to enhance their IT infrastructure, improve efficiency, and drive innovation. Companies in industries such as manufacturing, retail, and finance have leveraged Google Cloud's capabilities to streamline operations and deliver better services to their customers.
Google's advertising platform, Google Ads, has also been instrumental in helping Japanese businesses reach their target audiences more effectively. Small and medium-sized enterprises (SMEs) in particular have benefited from Google Ads, which offers cost-effective and targeted advertising solutions. By enabling businesses to reach potential customers online, Google Ads has contributed to the growth of Japan's digital economy.
AI-Powered Solutions in Healthcare
In the healthcare sector, Google's AI technology has been instrumental in developing solutions that address some of the most pressing challenges. Google’s DeepMind, an AI research lab, has been involved in projects that use AI to analyze medical data and predict patient outcomes. In Japan, where the population is aging rapidly, such innovations are crucial for improving healthcare delivery and managing chronic diseases.
One notable project involves using AI to assist in the early detection of diseases such as diabetic retinopathy, a leading cause of blindness. By analyzing retinal scans, Google's AI can identify signs of the disease much earlier than traditional methods, allowing for timely intervention and treatment. This technology has been piloted in various healthcare facilities across Japan, showcasing the potential of AI to enhance medical diagnostics and patient care.
Google’s Role in Japan’s Automation and Robotics Sector
Japan is known for its advancements in robotics and artificial intelligence (AI). Google has actively contributed to this sector by leveraging its vast networks of servers and raw computational power. The company has collaborated with Japanese research institutions and companies to develop cutting-edge AI technologies and applications. For instance, Google has worked with the University of Tokyo on AI research projects aimed at improving natural language processing and computer vision.
Another major field Japan is at the forefront is Robotics. And in that field, Google's acquisition of Boston Dynamics in 2013 had a significant impact. Boston Dynamics, known for its advanced robotics technology, has collaborated with a myriad of Japanese companies on various projects.
In manufacturing, robots like Boston Dynamics' Spot have been used to perform routine inspections and maintenance tasks in hazardous environments, reducing the risk to human workers and increasing operational efficiency. In logistics, robots have been utilized to automate warehouse operations, improving the speed and accuracy of order fulfillment.
Moreover, in the aftermath of natural disasters, which Japan is prone to, these robots have been deployed for search and rescue missions, infrastructure inspections, and debris removal. Their ability to navigate challenging terrains and perform complex tasks autonomously makes them invaluable assets in emergency response efforts.
Challenges and Competition
Despite its successes, Google has faced several challenges in the Japanese market. One significant challenge has been competition from local players. Yahoo! Japan, which had a dominant position in the search engine market, remained a formidable competitor. Yahoo! Japan's strong brand recognition, extensive local content, and established partnerships with Japanese companies made it difficult for Google to gain a significant market share.
Cultural differences also posed challenges for Google. Japanese consumers have unique preferences and behaviors, which required Google to continuously adapt its products and marketing strategies. For instance, Japanese users tend to prefer detailed and visually appealing content, leading Google to emphasize rich multimedia features in its services. Additionally, building trust and relationships with Japanese businesses and consumers required a deep understanding of local business practices and etiquette.
Another looming threat to Google’s dominance is the rise in OpenAI and ChatGPT. Google search has been declining in accuracy and relevance in recent years, leading to a lot of younger generations to rely on alternative platforms. Many people have started wanting a more human answer to their questions, which has led to asking ChatGPT, searching TikTok for answers, or even just appending “reddit” to their original Google search.
Future Prospects
While Google is still the leading search engine in Japan today, its future is less clear than before. The rise of ChatGPT has led to an evolution in the search engine space. Google’s future will largely depend on its ability to continue embracing innovations.
Google's market entry strategy into Japan reflects its broader global expansion strategy—adapting to local markets, forming strategic partnerships, and leveraging its technological prowess. Despite facing challenges, Google made significant strides in Japan, contributing to the country's digital transformation and technological advancement.
If your company is keen to enter the Japanese market, but you need support in planning and executing a market entry strategy, GlobalDeal is here to help. We are specialized in Japanese market entry and provide a diverse range of relevant services: From helping with local business partnerships to navigating Japanese regulations and crafting a marketing strategy that will resonate with your Japanese target customer. We also develop digital products such as apps and localized websites. Book a free consultation with us to learn how we can help you!