Rakuten CEO Hiroshi Mikitani on Competition With Amazon

The transcript discusses Rakuten's business strategy compared to Amazon, focusing on their membership model and data usage to cross-sell services. It highlights the unique market dynamics in Japan, where consumer preferences differ from the US. Rakuten emphasizes partnerships with small merchants, contrasting with Amazon's dominance approach. The discussion also covers Rakuten's competitive positioning through diverse services and the potential impact of 5G. Ethical considerations in investment, particularly regarding the Vision Fund's ties to the Saudi government, are also explored.

What is Rakuten's primary strategy to compete with Amazon?

• Creating a membership program and using data

• Offering free shipping

• Expanding into new markets

• Lowering product prices

How does Rakuten view its competition with Amazon in Japan?

• Rakuten thinks Amazon's approach is superior

• Rakuten sees itself as growing at the right speed

• Rakuten is not concerned about competition

• Rakuten believes it is losing market share

What is a key difference between Japanese consumers and those in the US according to the transcript?

• Japanese consumers demand a wider variety of products

• Japanese consumers prefer lower prices

• Japanese consumers prefer online shopping

• Japanese consumers are less concerned with packaging

What is Rakuten's approach to working with smaller merchants?

• Focusing on partnerships

• Offering exclusive deals

• Providing free advertising

• Dominating the market

What is Rakuten's competitive advantage according to the transcript?

• Focusing on a single vertical

• Offering a package of diverse services

• Being the largest e-commerce platform

• Having the lowest prices

What is a concern regarding the Vision Fund's investments?

• High operational costs

• Limited market reach

• Ties to the Saudi government

• Lack of profitability

What is Rakuten's stance on the source of investment funds?

• They are indifferent to the source

• They are very careful about the source

• They prefer government-backed funds

• They only accept funds from local investors