Businessland enters Japan, aided by 4 big local firms

Article Abstract:

Businessland Inc, which is the biggest US dealer in microcomputers, will create a subsidiary company for entering the Japanese market. Four Japanese companies - Canon Inc, Fujitsu Ltd, Sony Corp and Toshiba Corp - will each take 5 percent of the new venture; and Softbank Corp, a distributor of software and computer peripherals in Japan, will take 26 percent, leaving Businessland with 54 percent. Businessland's entry into Japan is part of a continuing effort to expand abroad after ten years of rapid growth in the US. Businessland already has bought retailers in the UK and in West Germany, and there are plans for a purchase in France. Businessland is cautious because Japan can be a difficult market for outsiders. Businessland's Japanese subsidiary will start small, with a capitalization of $20 million; one office, in Tokyo; and 14 employees, expected to rise to 100 by 1991.

Computer and software stores, Foreign operations, Japan, Toshiba Corp., Joint ventures, International aspects, Sony Corp., Computer stores, Canon Inc., Distribution channels, Fujitsu Ltd., Joint Venture, Retail/Reseller Channel, Market Entry

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Businessland posts big loss for period; more jobs cuts set

Article Abstract:

Businessland Inc reports a loss of $19.9 million, or 67 cents a share, for the 1st 1991 fiscal qtr, and the company plans to double the 20 percent layoff it was considering, to cut costs. The loss is a surprise to industry analysts and is much larger than was expected for the nation's largest computer retailer. Businessland suffers from a large cost structure, shrinking profit margins and severe competition. Some analysts are becoming increasingly skeptical of Businessland chairman and CEO David Norman's ability to recover the company. The company has failed to penetrate the growing and lucrative networking market, and it is hurt by expansion costs involved with its overseas operations.

Radio, Television, & Computer Stores, Finance, Retail industry, Retail trade, Profits, Layoffs, Layoff, Profit, Financial Stability, Losses

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