Line Corporation: Business Portfolio Management and Product–Market Expansion

LINE Corporation was started in 2000 as a local company in Japan focused on developing a mobile communication application. It later expanded its reach to operate a wide range of products and services in various markets including retail, entertainment, financial technology, and artificial intelligence. LINE Corporation was operating in two global markets—Asia and North America—with its top four strategic business units. The LINE mobile messaging application was the cornerstone of the company, launched in Japan shortly after the Great East Japan earthquake in 2011 to allow individuals to connect with loved ones, participate in relief efforts, and express their feelings through emojis and stickers. LINE FRIENDS INC. was a standalone entity created to sell and distribute character-related merchandise featuring the popular animal characters Brown, Cony, and Sally. LINE PLAY Corporation, the company’s popular avatar-building game, had over 75 million registered users, but some users saw it as merely a cash-grabbing game. LINE Next Inc. was a venture focused on developing and expanding the global non-fungible token ecosystem. In 2023, the main issue that LINE Corporation was facing was how best to allocate budget and resources to the two markets (Asia and North America) and to its top four strategic business units.

This case is designed for use at both the undergraduate and graduate levels for marketing courses within the company analysis module or in strategy related courses. After completion of this case, students will be able to<ul><li>understand the importance of conducting a thorough company analysis to inform the strategic decision-making process, including understanding a company’s mission and vision, and their importance in guiding marketing strategies and tactics;</li><li>understand the concepts of brand portfolio and strategic business units and learn how to how to interpret the four quadrants—cash cows, stars, question marks, and dogs—of the Boston Consulting Group matrix in the context of a company’s portfolio by analyzing each strategic business unit’s market share and growth potential, and by developing appropriate marketing strategies and tactics based on the Boston Consulting Group matrix;</li><li>understand the four strategies in the Ansoff matrix—market penetration, product development, market development, and diversification—and how to apply them to a company’s decision of market-product development; and</li><li>understand the importance of making marketing tactics consistent with marketing strategies.</li></ul>

• BCG Matrix, Ansoff Matrix, SBU