Abstract
This paper examines the current situation and problems of the Japanese meat processing company in China shifting from exports to domestic sales. Company NI focused in this paper, products meet products, and especially expand to domestic sales. At first, company N which is parent company of NI raised investment ratio to start domestic sales. NI raises materials by using Chinese major company which is another parent company, on the other hands sales by own strategy. In addition, the products of NI are mainly to target catering and meal replacement market. NI’s customers of retails are almost Japanese. However, customers of catering and meal replacement market are Chinese, Japanese and others.
There are some problems about starting domestic sales. First, if expand market, cost recovery could become serious problem. Second, costs of entering shops increase too. NI is needed to expand market which is not only retails but also catering and meal replacement. As a result, NI devises following risk diversification strategy. 1. NI expands domestic sales, at the same time, continues to exports to Japan. This approach can compensate risks about each other. 2. About domestic sales, expands both retails and catering and meal replacement market. It can compensate risks and pays such as cost recovery or costs of entering shops.
