Identify the strengths and weaknesses of Tokai UK’s international strategy. Essay

The Tokai Company was founded in 1947 in Hamamatsu, Japan and produced every forms of musical instruments,including a large range of pianos. Tokai instruments first appeared in the UK in the early 1980s when they were issueed by a company called Bluesuede Music. At that time the two biggest names in electric guitars were those produced by the American companies buff and Gibson, who both produced high tincture electric guitars but at a price that was prohibitive for the average amateur guitarist.Tokai competed against annexe, with products that replicated the Fender look and also closely esembled their guitars but for half the price. Not surprisingly the Tokai product stood alone in the marketplace and competed with Fender by making quality instruments available to customers who couldnt afford a genuine Fender or Gibson guitar. Tokais biggest seller at the time was the ST50 which resembled the famous Fender Stratocaster. However, Fender issued writs against Tokai which forced t hem to change the designs so as to not infringe Fenders copyright.Imports continued on for a further three days and Bluesuede Music did remarkably well with the product, using sales agents out on the road selling guitars to retailers. Unfortunately, in the mid-eighties one of the partners left Bluesuede owe the company and Tokai a lot of money. At that point Bluesuede had to stop the import of Tokai guitars.At the beginning of 2002 Nick Crane, a British entrepreneur, went to Japan to confab Mr Shohei Adachi, the managing director of Tokai, and agreed a deal to import the companys guitars once more into the UK. This started as a humbled operation and the products began to sink in into the UK. Shortly afterwards Nick Crane approached Bob Murdoch, who had 25 age experience in the music wholesale and retail business. Bob Murdoch maxim the potential of these instruments on the European market and became a partner in Tokai UK in early 2002.The company began by working from a small g arage, but over the subsequent 18 months turnover increased by 200 per cent and they are nowadays selling into Ireland, Italy and Spain. They had a commodious market in Germany but, as we will see later, have now pulled out of the market. Tokai UK now operates from premises on an industrial estate at Dinnington, South Yorkshire. Nick Crane left the company to follow some other interests in Spain Bob Murdoch bought out his partner and now has overall examine of Tokai UKand plans to launch Tokai across the pan-European market.