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In Japan, many homes have an electronic toilet seat rather than the conventional ones we use in the United States. The seat features an integrated, self-sanitizing bidet with a nozzle the size of a pencil that comes out from underneath the toilet seat and squirts water (adjusted to the user's comfort) to cleanse one' body after using the toilet. An attached blow drying unit eliminates the need for wiping with toilet paper. Users can adjust the water pressure, the temperature of the water, and the duration of the spray.
The electronic bidet is well established in the Japanese market. Its manufacturers enjoy a competitive advantage due to the unique characteristics of the Japanese people, who are very concerned about hygiene, and due to constraints on space that preclude installing a standalone bidet in most Japanese homes. Given Japan's high GDP, its technological savvy, and its dense population, a compact electronic product that enables people to maintain cleanliness is a natural fit. The electronic bidet is also popular because it reduces the expense of buying toilet paper, important in a country where timber resources are limited. Finally, in contrast to their foreign counterparts, Japanese families often look at the long-term economic and societal benefits of a product when making purchasing decisions. There are no other substitutes in the market that clean as efficiently and economically as the electronic bidet. Firms in this mature industry compete on price, features, and quality of the established brand.
Our analysis of the US market indicates that a service-oriented provider focused on a particular niche in the consumer market can expe ...