Management in IB Project.pptx - required

IB project

1. Mendi Brain Training Device Group 2: Dominika Bondaryk | Weronika Fydrych | Tran Thi Thuy Duong | Alexandra Braga | Anar Aghayev December 2022 Management in International Business

2. Product Mendi product World’s first brain training device that is used to measure brain activity, designed for home use Headband that picks up neural activity. Uses oxygen and blood flow in the prefrontal cortex to measure the activity Apart from the device, customers get an app where they can train their brain activity ( Brain training games) and follow its evolution Suitable for all ages Multiple users per device High Quality Hardware Successful Product * *Customer based report Mental wellbeing: 94% Creativity: 90% Learning: 87% Self-discipline: 74% Daily functioning: 92% Emotional regulation: 81% Main function Bringing stronger focus, performance and mental health for the Mendi’s users. The delicate Mendi headband is fitted with non-intrusive sensors that bring to the brain action to life.

3. Product Other Functions of Mendi Product: Better focus on performance Improvement of skills: memory learning, making decision, etc. Better stress management Advances in the creation of treatments for mental health diseases *Customer based report Mental wellbeing: 94% Creativity: 90% Learning: 87% Self-discipline: 74% Daily functioning: 92% Emotional regulation: 81% Competitive Advantage of Mendi The purpose of this device. First Brain Training Device for home use Globalization. Established in 43 nations. Innovative Technology. Functional near-infrared spectroscopy (fNIRS) neurofeedback. Lower Cost when compared with others Brain Training devices: 299$

4. Functional near-infrared spectroscopy (fNIRS) neurofeedback detects changes in the brain's local blood flow and oxygenation in response to neural activation. The fNIRS sensor is placed over the forehead, and beneath it is the prefrontal cortex (PFC) which plays a key role in the mental processes of the Executive Function (e.g. focus and working memory Product: Technology Features

5. Firm: Mendi About Mendi: Based: Stockholm, Sweden Founded: 2018 Co-Founders: Sammy Saldjoghi and Rickard Eklöf Established: 43 Markets Mendi started as a clinic. The positive results that they reach with the clinic, leads them to pursue Mendi as a project to make sophisticated brain training accessible to the masses at a democratized price point. Original project received funding from the European Horizon 2020 research and innovation programme under grant agreement NO. 888409

6. Firm: Why Mendi is a Born Global Firm ? Early, Rapid and Substantial Internationalization Founded five years ago and it is already present in 43 nations. Infrastructure The company is divided into 3 different departments – Marketing, Operations and Product & Engineering. Lack of financial and other resources The turnover of the company is approximately €4 Million. Founders with a successfully historic path related with the formation of new companies. Huge number of research partners and customers E.g Aerospace, University of Victoria, etc. Innovative product using advanced IT The soft Mendi headband was the first product allowing the neurofeedback training in the comfort of our houses, using the functional near-infrared spectroscopy (fNIRS) technology. High Quality Hardware with a differentiated design Hand-Made Swedish design using premium materials, fusing style and performance, and clinically tested signal quality that outperforms laboratory equipment.

7. Firm: Value Chain- Primary Activities Inbound logistics Mendi’s product is hand-made produced in Sweden and then, available to deliver in any of the 43 markets where it is established. Operations Mendi seeks to deliver a high-quality product: hand-made design with premium materials elaborated with a clinical test signal quality that outperforms laboratory equipment. The company has a lot of research partners to help keep the product as credible as possible. Outbound logistics Mendi’s product could be bought online on Mendi’s Website, in turn, transportations specialists as DDP and DAP will create this bridge between the buyer and Mendi. Marketing and Sales Mendi invests more in superior quality and research than in marketing activities. However, its entire experience on the website is a form of marketing. E.g providing user’s testimonies, among others. Service Mendi pretends that all their clients enhance their experience to the fullest to achieve that they offer: a customer service available on website, a live chat and a customer-oriented email. the possibility to refund during 30 days and an 1-year warranty since the moment that the buyer receives its device. Michael’s Porter Concept of Value Chain

8. Firm: Value Chain - Support Activities Procurement Mendi together with its research partners handles the procurement for some technology that is helping to improve the global brain health. Human Resources Management Being a born global firm, Mendi has not so many employees. The Mendi’s employees could be defined in three words: “Impact”,“Team” and “Co-ownership” . Technological Development The innovative technology (fNIRS) used in the Mendi’s product is one of its competitive advantages. Infrastructure The company is divided into 3 different departments – Marketing, Operation s and Product & Engineering . Michael’s Porter Concept of Value Chain

9. Firm At the moment, the company has not any partnership with a distribution channel intermediary. Distribution Channel Intermediary Facilitators Logistics Services Providers – Delivered Duty Paid (DDP) and Delivered at Place (DAP)

10. Firm : Swot Analysis

11. Firm: R&D and Innovation Stockholm, Sweden Location Department RESEARCH PARTNERS Back then: Neurofeedback Clinic managed by founders of Mendi - testing neurofeedback in professional environment. Now: Department of Product & Engineering that brings together designers and neuroscientists, supported by research partners.

12. Firm: R&D and I nnovation Closed Innovation From the generation of ideas to development and marketing, the innovation process takes place exclusively within the Mendi company. Why makes sense for Mendi works in a Closed Innovation environment? Complex innovation. Neurofeedback Training with a really complex process of innovation behind. Open innovation could lead for some risks, as the inclusion of some inappropriate elements that harm the whole innovation process Unique innovation: First Brain Training device for home use incorporated with fNIRS technology. Closed innovation helps to keep this uniqueness. To avoid competition.

13. Firm: Marketing Tactics FÄLTAN BRAIN CAMP - SWEDEN’S FIRST FIELD BRAIN CAMP INSTAGRAM: Mendi (@mendi.io)

14. YOUTUBE CHANNEL FACEBOOK PAGE TWITTER ACCOUNT

15. Market: Japan WHY JAPAN? → One of the oldest populations in the world → Need for addressing common mental health disorders → Open to innovation and new technologies → Has one of the most respected markets, following law and providing strong protection for intellectual and property rights Estimation of the nationwide prevalence of dementia in 2045 via linear regression analysis in Japan, comparing with 2020

16. Statistics and Data Very high life expectancy and one of the oldest populations in OECD countries

17. Prevalence in common mental disorders in the Americas, Europe, Middle East & Africa, and China Masculinity and mental health stigma “Mental health issues in Japan are often perceived as a sign of personal weakness that one should resolve by oneself without talking to others or asking for help,” Dr. Sayaka Machizawa , a licensed clinical psychologist and an associate director of clinical science at Signet Health in Tokyo Statistics and Data

18. Survey on seeking support when experiencing mental distress Preference in seeking counseling in Japan Statistics and Data

19. Market: Cultu ral environment of Japan Source: Hofstede Insights (n.d.) Power distance Borderline hierarchical society. Japanese are always conscious of their hierarchical position in any social setting and act accordingly. Individualism Collectivistic society from the Western perspective .. Japanese puts harmony of the group above the expression of individual opinions. However, there is not extended family system in Japan. Masculinity Masculine society . Collective group competitiveness is the most prominent, always striving for excellence and perfection.

20. Market: Cultu ral environment of Japan Source: Hofstede Insights (n.d.) Uncertain Avoidance One of the most uncertainty avoidance countries on earth. To change something in Japan is really difficult, the society prefers a highly ritualized way of life. Long Term Orientation One of the most long term oriented societies. Main focus on long term investment and on the growth of generations. Indulgence Restrained society . Japanese society tends to be cynical and pessimist. People try to comply to the fullest with the social norms and disregard their leisure ti- me and desires.

21. Market: Potential risks Cross-cultural risk There’s still a stigma surrounding mental health as something shameful and signifying lack of willpower. Product aimed to make mental health better could be controversial. Country risk Japanese economy has been in stagnation for the last 20 years. Investment opportunities for companies that are not big conglomerates are limited. Japanese legal framework is not welcoming for foreign companies. Commercial risks The marketing present in the Western countries could be not effective. It should be focused more on dementia and neurological diseases prevention. There are products aimed for brain training in Japan. Without showing the uniqueness of the device, it could be hard to find the customers. The delivery system should be the most discrete possible as using the device could be perceived as something shameful. Currency risk Japanese Yen is a very strong currency.

22. Market: Target Mar ket Customer Characteristics Age group: Adults and young adults Good financial situation Not afraid of new technologies (very advanced country) Open minded Four groups: Meditation and mindfulness fans , who want to try something new in their meditation practice. People interested in brain enhancement , but for whom mediation didn’t work out, as they like to see the clear progress, like in the game. Gadget enthusiasts , who likes to try new devices. People dealing with mental problems , open to new ways of treating their condition. Weaknesses: Language barrier and advertising Why is Japan different? Older population highly encouraged to use technology and continue learning

23. Industry Market Potential Analysis Simple Trend-Analysis Demand for brain training games is expected to to increase in the future as attention is focused on games that can improve health and also be enjoyed by families regardless of age. People in Japan start to realise how mental wellbeing is crucial for them, the potential market for Mendi is growing. Graph regarding the searches of the phrase: brain training in Japanese in Japan

24. Industry Market Potential Analysis Key Industry-Specific Indicators Percentage of people practicing meditation- 3.02% of adults Rate of growth of mindfulness and wellbeing trend Graph regarding the searches of the term “Mindfulness” in Japanese over the last 5 years in Japan. Graph regarding the searches of the term “Wellbeing” over the last 5 years in Japan.

25. Industry Market Potential Analysis Recognized work-related mental health disorders Suicides committed in Japan 2012-2021 Decline Mental Health Workforce

26. Industry Market Potential Analysis Key Competitors Brain training device present on the Japanese market (e.g., Neeuro, NeU) are mainly for professional use -> niche market for home-use brain devices is not served The main competitors of Mendi are: Muse - Present in Japan with exporting strategy. Apollo - Not present in Japan Flow - Not present in Japan Local producers in Japan Neeuro - B2B solution NeU - B2B solution NeU: Japanese brain training device, company operates on B2B market, partnering with elderly care facilities Source: https://neu-brains.site/solutions/ However, they have a huge difference concerning their technologies: Mendi is about measuring, controlling and enhancing brain activity. Muse, similar to a meditation app, helps the users to relax.

27. Business partners Retailers By selling directly to retailers, Mendi will make its product physically available without incurring any establishment expenses in the Market. E.g NTT DOCOMO; Seven & I; Aeon Online Intermediaries Renowned online platforms can ease the product’s introduction in the market, bringing more visibility when comparing to the company’s own website. E.g Amazon, Ebay, Alibaba Other Business Partners Elderly Care Facilities With one of the oldest populations in the world, Japan has the necessity to invest in this kind of product. Elderly care facilities could be a good start. E.g RIEI Translation service provider It would help Mendi to overcome the language barrier, while making it a more useful product for the whole population. E.g GTE Localize – B2B Translation Service for Global Market

28. Estimate Company Sale Potential Factor 1: Partner Capability Backed by: European Commission, VINNOVA( Sweden’s Innovation Agency), First Venture Partner with: KU Leuven ( Belgium), Sahlgrenska University Hospital and Gothenburg University, Aerospace Corporation, University of North Dakota (USA) Funded by: NASA Factor 2: Access to Distribution Channel Shipping policy Factor 3: Why Mendi can compete with other products? Diversity of User Age Range Convenient to User Function Cost Factor 4: Human Resource and Financial Resource Human Resource: Vision of Mendi, Operation in Mendi, Working Culture in Mendi Financial Resource: Venture in Financing ( $4.7 million) and Annual Revenue ( currently 3.7M USD per year), Revenue per Employee ( 112,000 USD) Factor 5: Reputation Achievement of Mendi Future Goal of Mendi

29. Entry strategy - Mendi in Japan Indirect exporting entry strategy Selling price: 299$ (ca. 42 300 JPY) Intermediaries: Export management company ( Distributor/Agent); Disintermediation Facilitators: Logistics services providers Advantages: Low risk strategy Low cost of entry even when compared with the strategy of direct exporting No need to follow complicated regulations related to setting up a company in Japan Increase of sales volume, profit, economies of scale Increase in market share Technical advice from exporting intermediaries Foreign market entry strategy already adopted by Mendi in other nations Recommended for born global firms

30. Entry strategy - Mendi in Japan Indirect exporting entry strategy Selling price: 299$ (ca. 42 300 JPY) Intermediaries: Export management company ( Distributor/Agent); Disintermediation Facilitators: Logistics services providers Disadvantages Higher overhead costs, which means less profit for the company Not fully control the foreign sale No direct customer contact Tracking performance is very difficult Time consuming to expand the research of oversea customers Complete with the other similar product Depending on the partner Less control over the price Unable to understand the market better Less or No Export Incentives Lower Sales Volume

31. THANK YOU FOR YOUR ATTENTION QUESTIONS OR COMMENTS?

32. Sources About Product: BBC (2015, May). Trounced by a brain-training octogenarian. Consulted on 11th October, 2022. https://www.bbc.com/news/magazine-32689533 Cavusgil S. T., Knight I. G., and J.Riesenberger (2016). International Business . Pearson–Prentice Hall. Mac Sources (2020, May). Mendi Real Brain Training REVIEW . Consulted on 13th October, 2022. https://macsources.com/mendi-real-brain-training-review/ Mendi (2022). Product. Consulted on 11th October, 2022. https://www.mendi.io/pages/product Mendi (2022). Science. Consulted on 11th October, 2022. https://www.mendi.io/pages/science The Gadgeteer (2020, April). Mendi Brain Trainning device review. . Consulted on 13th October, 2022. https://the-gadgeteer.com/2020/04/15/mendi-brain-training-device-review/ Sharid H. (2020) . Boost your mental health with training device. Consulted on 4th November, 2022 https://www.rumblerum.com/brain-training-device/amp/#Role_of_Mendi_in_brain_training (n.d) (2020) .FAQ Mendi: Real Brain Training . Consulted on 4th November, 2022. https://mendi.backerkit.com/faq#project-faq About firm: Alignment (n.d.). Swot Analysis Business Example. Consulted on 27th October, 2022. https://www.alignment.io/blog/swot-analysis-business-example Bplans (2019). Swot Analysis Examples. Consulted on 27th October, 2022. https://articles.bplans.com/swot-analysis-examples/ KTH. Hi there, Rickard Eklöf - co-founder of the newly started company Mendi. Consulted on 13th October, 2022. https://www.kth.se/en/alumni/varaalumner/intervjuer-med-alumn/hej-dar-rickard-eklof-medgrundare-till-nystartade-foretaget-mendi-1.1034077 MacSources (2020). Mendi Real Brain Training Review. Consulted on 27th October, 2022. https://macsources.com/mendi-real-brain-training-review/ Mendi (2022). About us. Consulted on 7th October, 2022. https://www.mendi.io/pages/about Mendi (2022). A unique carrer. Consulted on 11th October, 2022. https://careers.mendi.io/ Mendi (2022). Product. Consulted on 11th October, 2022. https://www.mendi.io/pages/product Mendi (2022). Professionals. Consulted on 11th October, 2022. https://www.mendi.io/pages/for-professionals Mendi (2022). Science. Consulted on 11th October, 2022. https://www.mendi.io/pages/science Mendi (2o22). Shipping policy. Consulted on 13th October, 2022. https://www.mendi.io/policies/shipping-policy Pitchbook (2022). Mendi. Consulted on 12th October, 2022. https://pitchbook.com/profiles/company/265350-34#overview Porter, M. E. (1990). Competitive Advantage of Nations . Free Press. The Gadgeteer (2020). Mendi brain training device review. Consulted 27th October, 2022. https://the-gadgeteer.com/2020/04/15/mendi-brain-training-device-review/

33. Sources About Market: BMC (2021, October). Future projections of the prevalence of dementia in Japan: results from the Toyama Dementia Survey. Consulted on 7th October, 2022. https://bmcgeriatr.biomedcentral.com/articles/10.1186/s12877-021-02540-z Export.gov (2019, June). Japan - Country Commercial Guide. Consulted on 12th October, 2o22. https://www.export.gov/article?series=a0pt0000000PAu7AAG&type=Country_Commercial__kav International Trade Administration (2022, January). Japan - Country Commercial Guide. Consulted on 12th October, 2o22. https://www.trade.gov/country-commercial-guides/japan-market-overview IOE (2015). Doing Business in Japan. Consulted on 12th October, 2022. https://www.japan.doingbusinessguide.co.uk/the-guide/legal/ Knowledge at Wharton (2013, January ). The Entrepreneurship Vacuum in Japan: Why It Matters and How to Address It . Consulted on 12th October, 2022. https://knowledge.wharton.upenn.edu/article/the-entrepreneurship-vacuum-in-japan-why-it-matters-a NBC news (2006, April). Brain training takes aging Japan by storm. Consulted on 7th October, 2022. https://www.nbcnews.com/id/wbna12251500 The borgen project (2021, April). Mental Health in Japan: Stigma and low inequality. Consulted on 11th October, 2022. https://borgenproject.org/mental-health-in-japan/ The Japan times (2020, August) . It's time to reset Japan's digital infrastructure. Consulted on 12th October, 2022. https://www.japantimes.co.jp/opinion/2020/08/02/commentary/japan-commentary/digital-infrastructure-reset Institute of Export (2015) Japanese Business Law. Consulted on 23rd of November, 2022. https://www.japan.doingbusinessguide.co.uk/the-guide/legal/

34. Sources About Cultural Environment in Japan: Hofstede Insights (n.d.). Country Comparison - Japan . Consulted on 18th October, 2022. https://www.hofstede-insights.com/country-comparison/japan/ Leadership Crossroads (2005). Avoiding Uncertainty . Consulted on 18th October, 2022. http://www.leadershipcrossroads.com/arti_oua.asp Hancıoğlu, Y., Doğan, Ü B., & Yıldırım, Ş S. (2014). Relationship between Uncertainty Avoidance Culture, Entrepreneurial Activity and Economic Development. Consulted on 19th October, 2022. https://www.researchgate.net/publication/272392223_Relationship_between_Uncertainty_Avoidance_Culture_Entrepreneurial_Activity_and_Economic_Development Nicole Hein (n.d.). On Japanese Cultural Concepts and Business Practices. Consulted on 19th October, 2022. https://www.grin.com/document/183364 Endo, Y. (2022, January 7). Redefining Masculinity for Japan [Review of Redefining Masculinity for Japan ]. Creative Insights. https://creativeinsights.gettyimages.com/en/trends/realness/redefining-masculinity-for-japan Why Japan?: Sammouri, N. (2022, May 25). The Stigma of Mental Health and Sanity in Japan . Arab News Japan. Retrieved November 27, 2022, from https://www.arabnews.jp/en/features/article_72751/ [research report] the public opinion survey on mental health (August 12, 2022): Health and Global Policy Institute. 日本医療政策機構（Health and Global Policy Institute） グローバルな医療政策シンクタンク. (2022, August 12). Retrieved November 27, 2022, from https://hgpi.org/en/research/mh-20220812.html Making mental health care accessible is challenging in Japan . World Economic Forum. (2022, October 17). Retrieved November 27, 2022, from https://www.weforum.org/agenda/2022/10/japans-challenges-in-making-mental-health-more-accessible/ Health at a glance 2021: Highlights for Japan - OECD . OECD. (2021). Retrieved November 27, 2022, from https://www.oecd.org/japan/health-at-a-glance-japan-EN.pdf Nishi, MD, PhD, D., Ishikawa MD, PhD, H., & Kawakami MD, PhD, N. (2019, May 29). Prevalence of mental disorders and mental health ... - wiley online library . Wiley Online Library . Retrieved November 27, 2022, from https://onlinelibrary.wiley.com/doi/10.1111/pcn.12894 Here's How Japan Has Become a Leading Technological Power . News On Japan. (22AD). Retrieved December 17, 2022, from https://newsonjapan.com/html/newsdesk/article/124622.php

35. Sources About Customers: Mendi (2020, December) December Update for Early Backers. Consulted on 26th of October https://mendi.backerkit.com/hosted_preorders/project_updates?page=3 Tepper, S. (2021, July) I’m enjoying my Mendi neurofeedback device. Consulted on 27th of October https://hinessight.blogs.com/church_of_the_churchless/2021/07/im-enjoying-my-mendi-neurofeedback-device.html Maslakovic, M. (2020, April) Train your brain like a muscle with Mendi . Consulted on 27th of October https://gadgetsandwearables.com/2020/04/15/mendi/ Calderone, N. (2022, March) Mendi Real Brain Training REVIEW . Consulted on 27th of October https://macsources.com/mendi-real-brain-training-review/ Patel, N. (2020, April) Train your Brain with Mendi: A portable meditation gaming device. Consulted on 27th of October https://hookedontech.com/train-your-brain-with-mendi-a-portable-meditation-gaming-device/ Berger, R. (2022, July) Mendi Powers Brain Health Education Training Game. Consulted on 27th of October https://www.forbes.com/sites/rodberger/2022/07/20/mendi-powers-brain-health-education-training-game/?sh=1772af157918 About Business Partners: RIEI 2022. Elderly Care Service. Retrieving December 17, 2022, from https://www.riei.co.jp/en/business/careservice.html Good firms (2022). Top Translation Companies in Japan. Retrieving December 17, 2022, from https://www.goodfirms.co/translation-services-companies/japan Liveabout dotcom (2019). The Top Japanese Retailers . Retrieving December 17, 2022, from https://www.liveabout.com/largest-japan-retail-chains-2892251

36. Sources About Industry: (2020, August) D eveloped by Professor Kawashima and others at Tohoku University, "Brain training game" has the effect of improving cognitive function. Consulted on 10th of November 2022 https://newswitch.jp/p/33181 Google Trends ( Trend of the phrase “Wellbeing” in Google search tool. Consulted on 10th of November 2022 https://trends.google.com/trends/explore?q=%2Fm%2F0n525z3&date=today%205-y&geo=JP International Trade Administration (2022). “Japan - Country Commercial guide”. Consulted on 15 th November 2022. https://www.trade.gov/country-commercial-guides/japan-market-challenges NeU Brains (2022, February) "Neurofeedback Brain Training Joint Research Presentation" held online on February 22 Consulted on 10th of November 2022 https://neu-brains.co.jp/information/press/2022/02/15/2352.html NeU Brains (nd.) NeU‘s SOLUTION: the next generation of personalized brain training is finally here! Consulated on 18th of November 2022 https://neu-brains.site/solutions/ About Sale Potential: Deeptech (2020, November ). Mendi breaks crowdfunding record . Consulted on 20th of November 2022.. https://sting.co/mendi-breaks-crowdfunding-record/ Mac Sources (2020, May). Mendi Real Brain Training REVIEW . Consulted on 20th November, 2022. https://macsources.com/mendi-real-brain-training-review/ Med Tech Innovation (2021, November) Start-up behind brain health device secures $4.7m seed financing. Consulted on 19th of November 2022 https://www.med-technews.com/news/medtech-merger-acquisition-finance-and-investment-news/start-up-behind-brain-health-device-secures-4-7m-seed-financ/ Satander Trade Portal (2022, October) Japan Reaching The Customer. https://santandertrade.com/en/portal/analyse-markets/japan/reaching-the-consumers Statistic of Department (2022, November) Mental Health in Japan statistic & fact . Consulted on 11th of November 2022: https://www.statista.com/topics/8609/mental-health-in-japan/#dossierKeyfigures

37. Sources About Strategy: Choudhary , R. (August, 2022). Difference between Direct Exporting and indirect exporting. Consulted on 25th November, 2022. https://bank.caknowledge.com/difference-direct-indirect-exporting/ How to export import. Disadvantages of Indirect Exporting. Consulted on 27th November, 2022. https://howtoexportimport.com/Disadvantages-of-Indirect-Exporting-4568.aspx IOE (2015). Doing Business in Japan. Consulted on 24th November, 2022. https://www.japan.doingbusinessguide.co.uk/the-guide/legal/ Knowledge at Wharton (2013, January ). The Entrepreneurship Vacuum in Japan: Why It Matters and How to Address It . Consulted on 24th November, 2022. https://knowledge.wharton.upenn.edu/article/the-entrepreneurship-vacuum-in-japan-why-it-matters-a Live About Dot Com (August, 2019) The Advantages and Disadvantages of Indirect Exporting. Consulted on 25th November 2022. https://www.liveabout.com/advantages-disadvantages-of-indirect-exporting-1953328 About Research and Development Mendi (2022) Science. Consulted on 9th December, 2022. https://www.mendi.io/pages/science Mendi (2022) Product & Engineering. Consulted on 9th December 2022 https://careers.mendi.io/departments/product-engineering Mendi (2022) About us. Consulted on 9th December 2022 https://www.mendi.io/pages/about https://www.lead-innovation.com/en/insights/english-blog/open-innovation-vs.-closed-innovation