An Analysis of Business System in Developing Business -An Empirical Study on New Business Development through Diversification in Japan-

In Japan, there are several cases in which similar companies diversify in similar directions, entering new industries different fro m existing business. New entrants believed that by utilizing their own corporate resources , they could successfully incubate and develop new business. Their styles of diversification were basically the same. However, some were successful and others were not. It was found th at successful companies not only constructed appropriate strategies, but also developed effective business systems. From these observations, it can be concluded that in order to succeed in developing new business through diversification, building an appropriate strategy is fundamental. That said, strategy alone is not sufficient. The successful implementation of even the best strategy requires a sound business model and well thought-out business syst ems. The purpose of this submission is to provide these findings widely to the academic soci ety, so that they ultimately contribute to an improvement in management quality.