Strategic Transformation and Ambidextrous Manager:

Abstract

Tatami is a traditional Japanese flooring. The industry has declined due to the westernization of housing. Generally, tatami stores operate by establishing their business with deep roots in the local community. Their markets are geographically restricted because tatami cannot be supplied without skilled craftsmanship. Therefore, achieving economies of scale is challenging in this industry, and product differentiation is difficult. The tatami industry is a typical fragmented industry. The Kuboki tatami store sells coasters made of tatami mats for restaurants throughout Japan, and is expanding its business overseas. This paper examines new business ventures and overseas expansion of tatami stores, as well as the positive impact these ventures have had on the existing tatami mat business.

Keywords

• strategic transformation
• diversification
• traditional industry
• fragmented industry
• decline stage of product life cycle