The joint venture with Mitsubishi Corporation in Japan
Use Porter’s Five Force model to analyze the competitive situation in the Japanese IT
services industry. Clearly specify the magnitude of each force as “low” or “medium” or
“high”, and justify your answers with case facts. (2.5%)
Is the competitive situation favourable or unfavourable for Tata Consultancy Services
Limited’s (TCS1
) operation in the Japanese market from the perspectives of the company
(TCS), Japanese customer, and competition in Japan, respectively? For example, if you
determine that the competitive situation for TCS is favourable/unfavourable from the
1 TCS refers to the Indian parent company.
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perspective of the Japanese customer, clearly specify your answer and justify it with case
facts. (3%)
What differences between the institutions (e.g., economy, geographical location, and culture)
in India and Japan were potentially detrimental to TCS in the Japanese market? For instance,
if you think that the economic distance between India and Japan is “low” or “medium” or
“high”, clearly specify your answer and justify it with appropriate information. External and
reliable information such as Hofstede’s value dimension scores for the two countries can be
used for this question. (3%)
Modes of Entry and VRIO Framework:
a. Why was TCS’ initial entry in the Japanese market through the wholly owned subsidiary
in 1987 unsuccessful? (1%)
b. Why did TCS give up its full ownership and control in 2014 to enter into the joint venture
(JV) with Mitsubishi Corp. (MC)? (1%)
c. From the perspective of TCS, identify the three most important resources and/or
capabilities that MC brought to the JV. Be clear on what each one is and explain why you
think they are the three most important. Apply the VRIO framework to each of these three
resources and /or capabilities. (1.5%)
d. To penetrate the Japanese IT services market and compete with local giants, should TCS
have acquired another medium-sized Japanese company instead of joint venturing with
MC? Why or why not? (1%)
e. Should TCS collaborate with other Japanese companies through non-equity mode
instead? Why or why not? (1%)
Recommendations:
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a. What would be your short-term recommendations for TCS Japan2
’s operation in the
Japanese market? Briefly justify your decision(s). (1.2%)
b. What would be your long-term recommendations for TCS’s future in the Japanese
market? Briefly justify your decision(s).
