Baseball Publicity in
Japan
Masato Takasu
ACE-Fa
Professor Cholewinski
June 14, 2005
Introduction
In 2004, Rakuten entered the baseball
world, and Rakuten
produced “Touhoku Rakuten Golden Eagles” in Sendai City.
Now, Rakuten Golden Eagles is taking
part in baseball season in Japan, so these days, surely the profit of Rakuten has improved by entering the baseball world. In other
words, Rakuten joined the baseball
world to bring publicity to itself. I think it is very big event for both the
baseball world and company. And also, this event affects the economy, so Rakuten and this event are the center of attention in the world,
because there are not many companies take part in the baseball world. I was
interested in this event, because it is big news for me and the baseball world
and this corporation, therefore I thought I should research in it. I will
explain what Rakuten is. After that, I
will discuss the reasons why Rakuten
joins the baseball world (e.g., reason, rival)”. Next, I will explain how
situation affects the baseball world and fans. And finally, I will talk about
the outcome of this situation. I will conclude with a brief discussion about Rakuten joined the baseball world to bring publicity to itself.
What is Rakuten
Recently, Rakuten is well-known for IT company
in Japan because the company entered the baseball world. But, people don’t know
about Rakuten’ business very much, therefore I will talk about Rakuten.
At
first, I will talk about company’s history (Information of company, 2005). Hiroshi
Mikitani established Rakuten, which is internet shopping mall companies in
1997, so Rakuten
is yet young, but Rakuten developed into big business short term. There
are two terms in Rakuten. These are “Established term” and “M&A term”.
Establishes term is from foundation to list Jasdaq, and M&A term is
from listed Jasdaq
to now. Anyway, Jasdaq is over-the-counter transaction market. I think that
M&A term is very important for Rakuten, because I am certain that Rakuten became big business by
M&A. M&A stand for merger and acquisition. So, M&A bring large
profits and to develop new enterprise for company. Better Life, which was CS broadcast
businesses company was the first Rakuten had got one of the companies by M&A,
and Rakuten
has got subsidiary one after another. Total number is about 20 companies. For
example, Infocast,
which is to send free e-mall company, Communication Online, which is an Internet
company, and so on. And Rakuten also gets in on companies’ capital. Total
companies are about 10. It is very heavy things, because Rakuten’s history is very young,
although this corporation got other companies from big business. A big example
is Infoseek,
which is an information retrieval company. It was purchased from Disney, which is an
entertainment corporation. And also, Rakuten organized sports team. For
example, these are Vissel Kobe, which is profeesional soccer team, Rakuten baseball team, and so
on.
Next, I will discuss Rakuten’s industry. Tanaka (2005)
provided information about to think, to act for myself, “Rakuten’s business consists of
six parts”. These are electric commerce businesses, portal media businesses,
travel entertainment businesses, financial businesses, professional sports
businesses, and other businesses. EC business is particularly an honorable
achievement, because there are more than ten thousands shops in Rakuten Market. This market had
collected only tolls that to place stores in the market, but in 2002, Rakuten Market began using a new
accounting system called the ‘following amount account’. This system is to get
commission in proportion with sales from shops in the market, and Rakuten Market succeeded in getting
large revenue.
Finally, I will explain concept of success
in Rakuten
(Edinet, 2005). This company’s goal is to be the best Internet service
corporation all over the world, so there are five concepts of success.
1. Always improvement and
advancement
2. To be Professional
businessman
3. Supposition→Action→Verification→Machinery
4. To give the best
satisfaction to customer
5. Speed, speed and speed!
There are Rakuten’s concepts. A member of
this company is supposed to carry their identity card to which company’s five
concepts is written at all times. These concepts are not only topic but also
secret ways of success. In the other word, these are Rakuten.
The
reasons why Rakuten joins the baseball world
There are
many reasons why Rakuten takes part in the baseball world in 2004, but I
had doubt whether Rakuten’s action is shot in the dark, when I
heard this news. This participation in the baseball world is to set up a
baseball professional term, not M&A. And also, Rakuten joined the
Pacific League which is in the red. It is like a bet, so Rakuten considers
whether to join the world once. Then, there is another company to try to join
the baseball world. This company is Livedoor. This
corporation tried to get the right to join the baseball world first. Therefore,
Rakuten was the second to raise this company’s hand, so this turn is
minus factor, because people think that the first is good image, the second’s
image is in imitation of the first. So, why did Rakuten join the
baseball world? I considered merit.
First reason is to get
publicity. Especially, baseball fans of more than forty years old, and also
these generations don’t use internet very much (Daybreak of Gaiya, 2005). See the graph ‘Using
Internet Rate in Generations’ below. There are many
president potions in more than forty years old, 
and also
there are many more than forty years old people in baseball fans.
Next reason is to raise access rate of Rakuten’s site. In
fact, Yamaguchi (2004)
gave this information about the purpose to get in the baseball world, “Rakuten site of access rate has
about twice.”
Third reason is to sell baseball goods in Rakuten Market. I explained
profit of Rakuten
Market is very important for this company some times ago.
Fourth reason is to
point at synergy with Rakuten travel. For example, site of baseball and
travel in Sendai are set of tour.
There are many reasons why Rakuten takes part in the baseball world. I read this piece
of information about purpose to get in the baseball world in Yamaguchi, Research
of Rakuten
(2004), “To regard these cost as advertisement cost.” This was interesting for
me because according to this sentence, Rakuten’s red disappear by
advertisement cost.
In brief, Rakuten joined the baseball
world in the running. There are not only positive, but also negative. So, Rakuten can get big revenue.
How
situation affects the baseball world and fans
A company
takes part in the baseball world. It is big news for the baseball world. And
also, last year was like a revolution for the baseball world, because there
were many problems. For example, merger problem by Oryx and Kintetsu, strike
problem in the baseball world, and new entry to the baseball world. In other
word, the baseball world was in crisis. Then, Rakuten and Livedoor saved the
baseball world from these crises. First Livedoor tried to
join the baseball world. Livedoor was hero of Japanese professional
baseball. Of course, Livedoor had a high popularity baseball
fans, but Rakuten joined this world, so Rakuten won this
battle, because there were many reasons. One of the reason is Livedoor’s boss wear
casual clothes, when he work, of course without tie (nikkeibp.jp , 2005). And, Rakuten has
much money than Livedoor. So, the
baseball board thought Rakuten can run
company of baseball for long time. And also, Rakuten established professional baseball team for two month
(Sports navi. com, 2005). It was a great thing, because normal company would
decide about these things for long time, but Rakuten decided these things for two month. Therefore, the
baseball board thought Rakuten decided
on get in on the baseball world in their faith. The baseball board allowed Rakuten to be suitable company. In 2005, the new baseball world
opened 2005’s season safely.
On one hand, baseball
fans didn’t like Rakuten and Golden Eagles very much, because they thought Livedoor was their hero. Livedoor’s president, Takahumi
Horie, put himself forward as a hero of Japanese baseball world (nikkeibp.jp ,
2005). Baseball fans thought they want Livedoor to join the baseball
world. Therefore, people couldn’t allow Rakuten as a hero (2004). And
also, now ranking position of Touhoku Rakuten Golden Eagles is the bottom team
(Rakuten Golden Eagles, 2005). So, I expect people think Rakuten is not hero, because
there are image that hero is strong. It is stereotype. If Livedoor joined the baseball
world, Livedoor’s
baseball team would win league. But, recently baseball fans are allowing Rakuten baseball team, because Rakuten is hero as a baseball
in Japan exactly, and Rakuten tried to get customer of trust. For example, Rakuten makes times for
customer to spend with Touhoku Rakuten Golden Eagles professional player. I
found many fans of Golden Eagles (Touhoku Rakuten Golden Eagles, 2005). The
baseball fans expect Rakuten to go for it, too me. 61.6 percent of the
baseball fans believe that Rakuten changes the baseball in Japan to be new
baseball world which make them fun (Sports navi. com, 2005).
The outcome of this situation
I don’t understand the outcome of
this situation yet, because I think that the result is understood in the
future. But, I think this trial will be positive way for Rakuten. In fact,
Yamaguchi (2004)
reported Rakuten
as a department store, “Rakuten’s operating profit rose after joining the
baseball world.” To be sure, I think so, because this happening became big a news,
and people could know about Rakuten brand, and also they were interested in the
company called Rakuten. Naturally, these cost are free in the sense that
advertisement expense. I think Rakuten succeed in taking part in the baseball
world. For example, Rakuten could get many customers to come Rakuten site, this company
could sell in a set tour that is enjoying the baseball game of Rakuten Eagles and to travel Sendai,
this corporation sells their professional baseball team of goods in Rakuten Market, this internet business
company can broadcast their baseball team game on the internet, Rakuten is well-known in Japan,
this shot opened 2005’s season in Japan safety, Rakuten gaves other companies
dream that every company can do every thing, because it is very unbelievable
try for common sense of business to make professional baseball team in the
baseball world in Japan.
But then, the baseball team company of
management is in red, and also this red amount to more than 800,000,000 yen
now, to be sure Rakuten gets in the black. It is negative for Rakuten. I thought Rakuten also can’t change the
Pacific League, but Rakuten assumed this result that Rakuten baseball team company
would be in red. Rakuten expects that this baseball business will be in black about
five years ago, because Rakuten has big plan of it.
In short, Rakuten succeed in joining the
baseball world.
Conclusion (Rakuten joined the
baseball world to bring publicity to itself)
In conclusion, I would like to talk that Rakuten joined the baseball
world to bring publicity to itself. Let me get straight to the point, it is Rakuten, in the other hand we only looked on Rakuten, so these big news are common news for Rakute, we just understood Rakuten.
I would like to explain
it to you. Please remember that Rakuten’s five concepts of success. I mean, Rakuten just practices five concepts
of success. First concept is “Always improvement and advancement”. Rakuten would change the
baseball world, Rakuten joined this world. Next concept is “To be Professional
businessman” Rakuten decided to get in on the baseball world as a professional
company in their faith. Third concept is “Supposition→Action→Verification→Machinery”. I would like
to talk about fourth concept after fifth concept. And also, last concept is “To
give the best satisfaction to customer”. Rakuten aims to make their
customer happy. For example, Rakuten makes times for customer to spend with Touhoku
Rakuten Golden Eagles
player. Finally, I will explain that “Speed, speed and speed!”. It is important
point. Rakuten
established the professional baseball team in the baseball world for two month.
Therefore, the baseball board trusted Rakuten, audience was surprised
at Rakuten,
and they allowed this company as an owner of baseball team. Then, I would like
to teach you about forth point. Why Rakuten could set up the
baseball team, because of this concept. It is important to make business plan
in the process to advance their work. It is basic point in Japanese company.
Then, to distance other companies by five point. And, Rakuten could join the baseball
world. I don’t have good word. Take leave to say, publicity is bonus of joining
this world. I thought Rakuten is very great company. I am looking forward to
seeing Rakuten
for the future.
References
Yamaguchi, A. (2004). 楽天の研究 Research of Rakuten. Tokyo: Mainichi
Shinbunsya Press.
Tanaka, K. (2005). ライブドア・楽天に学ぶ 100億企業の作り方 To learn to make
companies of ten thousands million from Livedoor and Rakuten. Tokyo: Pal Press
Itakura. (2004). Rakuten Eagles fan site. Retrieved July 9, 2005
from the WWW: http://yakyublog.seesaa.net/article/945383.html
Rakuten Eagles. (2005). Rakuten Eagles. Retrieved July 9, 2005
from the WWW: http://www.rakuteneagles.jp/index_f.html
Tohoku Rakuten Golden Eagles. (2005). Tohoku
Rakuten Golden Eagles.
Retrieved July 10, 2005 from the WWW: http://bbs.eaglesrooters.net/
Baseball. (2005). Spots navi. Com. Retrieved July 10, 2005
from the WWW: http://sportsnavi.yahoo.co.jp/baseball/
Rakuten. (2005). Rakuten. Retrieved July 10,
2005 from the WWW: http://www.rakuten.co.jp/info/history.html
Daybreak of Gaiya. (2005). Daybreak of Gaiya. Retrieved July 11, 2005
from the WWW: http://bb1.tv-tokyo.co.jp/gaia/keyword/040307data.php
Edinet. (2005). Edinet. Retrieved July 1, 2005 from the WWW: http://info.edinet.go.jp/InfoDisclosure/document/report.jsp?id=941355&no=0050A4MQ&kind=01&ordi=01&pid=941355&page=1&rel=&top=0050A4MQ&target=1&owner=%8A%79%93%56