2.Possibilities Seen in the Silicon Valley
Through the Business Mission and the Exhibition
- Onodera
- The Greater Tokyo Initiative projected a business mission in Silicon Valley in June 2014. It was a project to see if the Japanese SMEs have a chance of getting into the Silicon Valley by observing the local companies as well as attending an exhibition. And, I know you’ve participated the mission, don’t you?
- Mizuki
- That’s right. We’ve just received an inquiry from a major IT manufacturer in Silicon Valley at that time, and would like to take the chance to precede a business talk with the company. So, I joined the mission.
- Onodera
- What do you feel about the mission?
- Mizuki
- Well, in Japan, we go through a process of stacking element technologies one by one, and also considering the related costs of executing the development when there is a thought of making something. But, in the Silicon Valley, the thought of “want to make something” comes first, and then the prerequisites or element technologies are later being considered. I was quite surprised by that.
- Onodera
- Well, the ways of thinking are completely different, aren’t they? The Greater Tokyo Initiative believes that the Japan’s SMEs have a chance of getting into the Silicon Valley. So far, it has been aggressively assisting its member SMEs to expand into the Asian markets, but the expansions have fallen into price competition but for most cases. It is difficult to push forward a business talk without to overcome the price differences caused by the labor cost. However, on the other hand, in Silicon Valley software companies like Apple and Google have started to step into the hardware market as well. It’s for sure they are going to have prototype developments, and therefore, there is a room for Japanese companies to join to the market.
- Mizuki
- That’s true. Companies like Apple and Google are so profitable in software market that they can afford a little bit higher costs in hardware if they have a strong feeling of making good products.
- Onodera
- I think Japanese products are better in high-quality and stability compared to companies in many other countries, so Japanese companies will be able to manifest their strengths in such matured markets.
- Mizuki
- Unlike the other companies, our development method is to manufacture products with the in-house machinery from manufacturing machines to measuring instrument. And, it differs from the Silicon Valley way of gathering element technologies from all places. So, a company like us might have a chance for getting into the Silicon Valley.
- Onodera
- Of course. During the business mission, many local companies in Silicon Valley are very interested in Japan’s technologies and products, and would like to have business talks with us. The feedback was quite better than originally expected.
“Where and What to Sell?” Decide for Yourself
- Onodera
- During the business mission, the trial production request for Mizuki from American leading IT maker has come up as a topic among the mission participants.
- Mizuki
- That’s right. Thank you for your assistance in concluding the non-disclosure agreements with the maker. It is a company we really want to have business with. So, we jointed the business mission and pay a visit to the maker in Silicon Valley to precede negotiations. I am very pleased with the results.
- Onodera
- I am glad I can be of help. Besides, it didn’t trouble me too much because your objective was very clear.
- Mizuki
- Well, we worked hard to analyze the fields in which our products can apply to according to our technology first; and then asking for your support. Many SMEs in Japan make products first and then look for someone’s help of selling products. I don’t think it is a good thinking. As for me, a company has to think of where and who to sell its products itself.
- Onodera
- Until now, the SMEs in Japan have been successfully running businesses by the word-of-mouth-advertising and well-built relationships with the regions. However, it no longer works, and many SMEs don’t know how nor where to sell their products afterward. I think that’s the reason they need someone to sell products for them.
- Mizuki
- Actually, many SMEs in Japan possess fantastic technologies. If they can form methods to take advantage of those technologies, I believe they will have great chances to be successful. Companies should bring up their efforts and selling power by knowing more about themselves. Well, this is a challenge even for us.
