Conference on Competitiveness

Announcement of the Porter Prize Winners<Summary>

Mikiharu Noma

Before announcing the winners, I would like to explain the selection criteria. The Porter Prize recognizes companies and business units that provide unique value through innovation and compete successfully with their own distinctive approaches.

The selection process consists of two stages. In the first stage, applicants are evaluated on profitability, uniqueness of the value proposition, consistency of the strategy, and innovation. The second stage considers the effectiveness of the capital invested, value chains, trade-offs, and fit across activities. Based on these award criteria, four companies (including one business unit) were selected as this year's winners. The four winners are

Marugame Seimen business unit (Marugame Seimen Inc.) of TORIDOLL Holdings Corporation
Milbon Co., Ltd.
Yo-Ho Brewing Company
Rakuten Bank, Ltd.

We begin with Marugame Seimen, the operator of Sanuki Kamaage Udon establishments. As of October 2020, the restaurant chain operates roughly 1,000 outlets worldwide, with 862 outlets in Japan and 228 abroad. These establishments are committed to serving freshly made noodles boiled in a freshly prepared broth with tempura deep-fried on the spot to ensure customers enjoy delicious, authentic Sanuki Udon. Each restaurant features an open kitchen where diners can watch the food being prepared, so the waiting time never feels long even when waiting in line. Marugame Seimen has achieved a combination of new values, namely, reasonable prices, in-the-moment dining experience, and speedy service, as well as delicious food. As for restaurant operation, effective staff training, monitoring, and authority delegation ensure quality and successful local adaptation.

Next is Milbon, a manufacturer and seller of hair care products exclusively for hair salons and not for general retail. The company has maintained a top market share in hair salon products for over 20 years.

Helping beauty salons increase their revenue and profits is Milbon's top priority value. The company makes it possible for its clients to provide a first-rate hair styling experience that meets customer needs by turning leading-edge hairdressing techniques into products and technical manuals. Milbon also provides a variety of services designed to assist client development, including the "Field Person System," a sales and training support program for hair salons. The online-store MILBON:ID launched in June this year is a B to B to C e-commerce platform. By making it accessible only to those customers supplied with IDs at MILBON partner salons, the platform effectively integrates MILBON clients into the distribution channel.

The third winner is Yo-Ho Brewing, a craft beer brewery that specializes in ale and does not brew lager beer. Aiming to build a strong connection with its customers, the brand gives each product a distinctive character. New products are developed with the goal of brewing beer that enthuses just one person out of a hundred each beer with its own worldview created through flavor, naming, and packaging, all with a specific persona in mind. A diverse product line-up offering more than ten different types of ale is available at all times to allow customers to select the perfect drink for any occasion. The production of its flagship products sold across Japan is outsourced to Kirin Holding Co, Ltd., so that Yo-Ho Brewing can concentrate its management resources on product development. With an eye to building an entertainment business centering on beer, the company not only sell products but also organizes fan get-togethers and participatory promotion events to develop an ardent customer base.

The final winner is Rakuten Bank. With 8.68 million bank accounts, Rakuten Bank is Japan's largest internet bank that distinguishes itself with various services ranging from deposits, fund transfers, and loans to asset management tools. The bank's value proposition is "better services at lower prices." Thorough digitalization has allowed the lender to offer higher deposit interest rates and lower housing loan interest rates than competitors. Taking advantage of its position as a member of the Rakuten Group, which boasts a roughly one hundred million customer base, the bank maximizes the group's synergies through the Rakuten loyalty point program, customer data-based marketing, introducing customers among group businesses, and joint development of new services across businesses.

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