Would Mulishly be able to help Boots manage the Japanese regulations? Boots needs to reformulate more than 2, 000 products in order to meet with the regulations and import restrictions of Japanese market, Which is a huge investment and after reformulation, these product have to be registered with the Japanese authorities whiny had considerable leeway in how they applied such regulation.
Nevertheless, Mediumistic Corporation belong to the Mediumistic keiretsu Which is one of he oldest and largest industrial group in Japan and are leaders in their respective industries, they already have experience working with foreign firms to established in Japan and they are looking to increase Its retail activities. So they match In the right way with MAC to manage all of the Japanese regulation. 2. Would It be able to provide meaningful advice about how to attract and retain Japanese costumers?
Foreign companies often had difficulty entering Japan, due to the complexity for obtaining resources, and local reputation or business relationship, the trend is to see s less trustworthy the foreign firms. So in order to attract and retain costumers MAC is the best option for entering the Japanese Market due to its well known reputation and access to resources ( people, real state and financial resources).
But they still have to be aware of the complexity of thehealthand beauty business in Japan, Which have many differentiation for each area. 3. Would the two companies continue to share the same interests? The Joint venture proposal is giving Boots the decision advantage by having 51% stake of the Joint venture, and as MAC is looking to increase retail activities they are in he same direction and should continue to have the same interest in the process of entering this market.
Was the proposed Joint venture a good Idea for Boots? Is a great Idea, In order to enter the Japanese market they need to make this Joint venture with MAC, there Is no other way due to regulations of the Japanese authorities and the untrustworthy of the market in foreign firms, it would end up in big losses if no experience and they are in the right position to make this venture since they are the leaders and are managing in and excel way their local market.