“Servitization” Coupled With “Globalization”: A Solution Oriented Business Strategy for Japanese IT Manufacturer towards Emerging Market Entrants

Abstract

The term ‘servitization’ adding value by adding services is not new any more in the manufacturing industries of developed economy, like as Japan. But, it is still new or in many cases unknown in the developing economy, such as Bangladesh. ‘Globalization’ is another keyword in this paper well known by almost every economy since it is witnessed as a modern form in19th century. But recently, the significance of this term increases couple of times in Japanese manufacturing industries, namely, in the IT industry, because of, shrinking domestic market, razor margin, and sometimes-poor performance against rivals. In this context, companies are seeking opportunities in the global IT market, particularly in Southeast Asian countries. At the same time, the emerging country like, Bangladesh is looking more value added goods and services suppliers in the IT industry who offer ‘total solutions’ and ‘know-how’. Thus, the purpose of this paper is to present the opportunity and challenges for Japanese IT manufacturer towards emerging market entrants, such as, Bangladesh. A conceptual model is then proposed, in which Japanese IT manufacturer pursue its capabilities by aligning with local partner and create values for each other. The paper uses an exploratory single-case study approach based on semi-structured interviews, and archival data. A total of 28 in- depth interviews were conducted both in the case company, i.e., Fujitsu and Bangladesh IT industry, resulting in more than 100 pages of interview data. The survey result shows the high potentiality and key challenges for Fujitsu in Bangladesh market. These challenges are long time process for business establishment, high-capability of multi vendor products, and creating brand awareness. Moreover, this research provides insightful information to understand, analyse and plan to move Bangladesh IT market strategically.