On Rakuten's Corporate Philosophy and Global Strategy

On Rakuten's Corporate Philosophy and Global Strategy

Blending Japanese Values with Global Insights
The corporate philosophy articulated by Hiroshi Mikitani, Chairman and CEO of Rakuten Group, offers a perspective on the challenges faced by modern global companies. Mikitani discusses Rakuten's uniqueness in being a Japanese company with a global mindset, and there is a clear strategic intent behind this approach.

Differentiation Strategy Since Founding
Mikitani describes his thoughts at the time of founding as follows: "I started Rakuten with a clear vision. I wanted to challenge the status quo. Not just in Japan, but globally. I had no interest in copying what was being done in the United States or Europe. I wanted to take the best ideas, wherever they came from, and reconstruct them through our own unique lens." From this statement, one can read a clear intent to aim for unique value creation rather than mere imitation.

Organizational Management Rooted in Japanese Culture
A characteristic of Rakuten's organizational management is the conscious incorporation of Japanese values. Mikitani states, "Discipline, respect for detail, and a focus on continuous improvement—these are all values rooted in Japanese culture." Specific initiatives include the weekly company-wide meeting known as the 'Asakai' (morning assembly) and office cleaning in which everyone, including executives, participates. Mikitani explains these by saying, "They may seem trivial, but they form a certain way of thinking. They foster humility and a sense of responsibility, reflecting the collective spirit that continues to define our company to this day."

Practicing Ecosystem Thinking
What is notable about Rakuten's business strategy is its ecosystem thinking, which prioritizes long-term value creation over short-term profits. Mikitani states, "We are building Rakuten for the long term, not pursuing quick profits, but creating mutually linked value across many different services." Through this strategy, the company is not satisfied with its success in e-commerce and continues to invest in new fields such as fintech, digital content, mobile technology, and AI.

Challenges and Responses in Global Expansion
On the other hand, Mikitani also recognizes that Japanese values alone have their limits. After stating frankly that "discipline alone is not enough to achieve growth on a truly global scale," he explains that "what propelled Rakuten beyond the boundaries of Japanese business culture was the active adoption of global best practices." Currently, Rakuten operates in 30 countries and regions and provides services to approximately 2 billion users, and there is a strategic approach behind achieving this scale. Mikitani says, "We did not try to simply replicate the success of Silicon Valley. We studied what worked, drew inspiration from various places, and built something of our own."

The Dilemma of Diversity and Unity
One interesting initiative in Rakuten's organizational management is the balance between diversity and unity. While the company is a multinational organization with employees from over 100 countries and regions, it maintains cohesion through a common philosophy called 'Optimism.' Mikitani positions diversity by saying, "At Rakuten, diversity is more than just an 'initiative.' It is one of the engines that drives innovation." However, at the same time, he emphasizes the importance of balance, stating, "A company also needs a common philosophy, and for us, that unifying philosophy is Optimism."

Expectations in Corporate Culture
Regarding his expectations for employees, Mikitani clearly states, "I expect everyone to bring their own perspective to Rakuten, but I also expect them to align with our culture—our passion, our focus, our will to get things done, and our dedication to empowering society through transformative technologies like AI." Furthermore, he mentions, "If these ideas do not resonate with someone, that person might be better suited elsewhere," showing his stance of prioritizing fit with the corporate culture.

Efforts Toward Technological Innovation
As a specific example of technological innovation at Rakuten, the mobile network business is cited. Mikitani speaks of the achievement, saying, "We have built the world's first fully virtualized, cloud-native mobile network with an incredibly multicultural team, challenging industry norms and solving problems that legacy operators could never crack."

Recognition of the Current Situation and Challenges
From Mikitani's remarks, one can also read a calm recognition of Rakuten's current position. The expression, "We are not about following global trends. We are trying to redefine what is possible by blending the best ideas from around the world with the best of Japan," can be interpreted as suggesting a situation that is still in development. Also, the statement, "By combining different strengths, we create something better that could not be achieved by either one alone," speaks to the fact that this is an ongoing effort.

Prospects and Challenges
The 'Rakuten Optimism' event held in July demonstrates the company's focus on the AI field, but this can also be seen as a process of trial and error. The search for a Japanese company to achieve true success in the global market continues, and Rakuten's efforts can be positioned as part of that experiment. The philosophy advocated by Mikitani of "blending the best of Japan with the best ideas from the world" is certainly an attractive vision, but its realization is accompanied by many challenges. The fusion of corporate culture and diversity sounds ideal in theory, but in actual operation, it is a complex task that always requires delicate balance adjustments. In an organization with employees from over 100 countries and regions, it is not hard to imagine the difficulty of seeking unity through an abstract concept like 'Optimism.' For talent with different cultural backgrounds to truly cooperate and create synergy, concrete mechanisms that go beyond mere sharing of philosophy are essential. Whether Japanese practices like morning assemblies and office cleaning can truly become meaningful integration elements for multinational talent will require continuous verification. Also, regarding Rakuten's ecosystem strategy, its effectiveness is greatly influenced by changes in the market environment. While providing integrated services across multiple business areas brings convenience to customers, it also carries the risk of being at a disadvantage in terms of concentration in competition with specialized companies in each field. Especially in fields with large capital investment like the mobile communications business, competition with existing major operators is expected to be a long-term battle, and the impact on Rakuten's overall profitability is a point that should be watched closely. Furthermore, Rakuten's position in the global market can hardly be said to be established yet. While the figures of operations in 30 countries and regions and 2 billion users are impressive, more detailed analysis is needed, such as market share in each region, profitability, and relationships with competitors. In reality, its presence in major markets like the United States and China is still limited. In terms of technological innovation, the superiority of the cloud-native mobile network that Rakuten claims is a challenge that should be proven through long-term operational track records. A new technological approach does not necessarily guarantee success in the market, and multifaceted evaluation such as customer satisfaction, cost efficiency, and service stability is required. Regarding the focus on the AI field, it is unclear what differentiation elements Rakuten can have compared to other major tech companies. Developing AI technology requires vast resources and specialized talent, and it is not easy for Rakuten to establish its own position in competition with existing giant companies like Google, Amazon, and Microsoft. The corporate philosophy that Mikitani speaks of is certainly thought-provoking, but whether it will bear fruit as actual business results will be judged by market performance over the next few years. The grand experiment of fusing Japanese values with global standards is still in the middle of finding its answer, and Rakuten's challenge is currently ongoing.

Blending the best of Japan with the best of the world
https://rakuten.today/mickeysvoice/blending-the-best-of-japan-with-the-best-of-the-world%EF%BF%BC.html