Cookpad is Japan's largest recipe site that allows users to upload and search for recipes. It has over 20 million registered users and 1.2 million registered recipes. Cookpad follows a differentiation strategy by providing a high quality service with features like a large recipe database, simple and usable interface, and fast search capabilities. It generates revenue from advertising and premium membership services. Going forward, it is evaluating strategic alternatives like global expansion or diversifying into new business areas to continue its growth.

1. Business Strategy I
“COOKPAD”
1

2. •Japan’s largest recipe
site that lets upload and
search original or selfcreated recipes.
• Listed company which
went public on the
Tokyo Exchange Market
(07/2009)
•Which recipe site do you
use most frequently?”
-80% of users answered
“COOKPAD”
Source: Survey from Nikkei Research
Institute of Industry
and Regional Economy
2
Mission:
“Make everyday cooking fun”

3. Strategic Model of
COOKPAD
20 million
registered
users
Broad Low- Cost
Strategy
(as of 07/2012)
1,2 million
registered
recipes
Broad
Differentiation
Strategy
Narrow Low Cost Strategy
Narrow
Differentiation
Strategy
3

4. Business Model
Quality
of
Service
Variety of
Offers
COOKPAD
Advanced
Technologies
4
Social
Networking
System

5. 13,88
Million
PC
Users
17,02
Million
Mobile
users
Net Sales
Operating Income
1,875
Net Income
5
3,544
1,151
FY2012 Q3
(9 months)
32%
Income/Sales

6. Highest sales in the company’s
history
775
727
542
（¥ million）
558
583
638
681
480
413
452
420
390
485
303
Q1
2011
6
Q2
Q3
Advertising
Q4
Q1
2012
Q2
Q3
Premium Services
Source: Cookpad reports FY2012

7. General External Environment
Political Environment
Economic Environment
Abenomics
Depreciation of the yen
Social Environment
SNS is spreading
Web search became common
Women’s social participation (Sharing
house works with men)
Safety and health conscious of food
Technological Environment
Share of Smartphone is increasing
Supply chain management
Demographic Environment
Aging society
Baby boomers is retiring
Specific International Events
7
Corporate tax is high in Japan
Depreciation of the yen

8. Five force analysis
Threat of new entrants
Capital investment is low
Simple business model
Number of membership and recipes
is overwhelming
Supplier power
Switching cost
high
Many IT service
providers
Number of membership
and recipes is
overwhelming
High awareness and
satisfaction of Web site
Other recipe site
weak
Segment Rivalry
sl.weak
Books
Magazines
TV
restaurant
industry
8
neutral
sl.weak
Threat of substitutes
Buyer power
Advertiser
User
Switching cost is
low
No comparable
competitor
Oligopoly
weak

9. VRIO Framework
Value First Move
: High
Brand &
Advantage
Customer Awareness / Preference
Customer Satisfaction / Beyond
Customers' Expectation
Large Number of Recipes
Simplicity / Usability
Rarity : High
Internet Technology
Short Click Response Time
Accuracy of Search Function
Big Data Analysis
Ruby / Open Source Web
Application Framework
Imitability : Medium
Organization : Medium
Business Model
Structure & Control
Mechanism
Easy to imitate the Business Model
Need Time, Capital, and Technology
to catch up
9
Strong Leadership of Founder
In-house Technology Development
Homogeneous Background of
Management Team

10. Evaluation of Cookpad's Current Strategy
 Cookpad's diffentiated service creates customers preference.
 Customer preference allows Cookpad to make above normal
profits
 Cookpad's diffentiated service generates competitive
advantage.
 Cookpad's service differentiation strategy is well implemented
through the organizational structure and control.
VRIO criteria verifies Cookpad's
service differentiation strategy.
10

11. SWOT Analysis
High awareness and satisfaction of
Web site
Number of membership and recipes
is overwhelming
Market leader position
Technological excellence (short
response time, etc)
Simplicity
Less diversification in
business
Too much reliance on the
founder/top management
Rapid expansion/Recruit of
good engineers/Burden of
investment for the future
Increase of paying members
Other potential segments
Alliance with Facebook
Globalization/Overseas market
Many potential customers (men, young age)
Women’s social participation/Sharing
housework with men
Safety and health consciousness of food
Simple business model
Service obsolescence
Relatively low entrance barrier
(Simple business model, less
capital intensive)
Possible entrants
11

12. Analysis of Cookpad strategy
• A platform business based on FOOD
Premium
services
Want more
information!
Customer
experiences
-Tons of
Food
recipes-
Want
effective
ways!
Advertising
Platform
Want to know
customers’
needs!
Marketing
support
Stable and growing market
12

13. Strategic alternative
• Two options for alternatives
Growth in overseas
Time to
expand
their
business!
A risk of saturated paid users
among low diversification
13
Globalization
Go global
with
current
business
Synergy
globally
Current
business
in Japan
Synergy with
other
businesses
and targets in
Japan
Diversification

14. Strategic alternative
Mission statement
Make everyday cooking fun
Globalization
Important resource
14
Should choose
people who have
• high community
sense in SNS
• high sympathy
to Japanese
food
Customer value
is a country which has
• the highest usage of
SNS about
Japanese foods
• the highest number
of people who like
Japanese foods the
best
JETRO report 2012

15. Strategic alternative
Mission statement
Make everyday cooking fun
Diversification
Should aim
• To target new
segments
(age and men)
• Service
expansion
15

16. Sales Forecast (5-year)
9,000
8,000
7,000
6,000
Diversification
5,000
Globalization
4,000
Premium Services
Advertising
3,000
2,000
1,000
2012
2013
2014
2015
2016
2017
2018
5-year forecast
Assumptions
1. Adverting business will steadily grow at 5%
2. Premium service market will be saturated and slow down
3. Capture 1% of Korean people (age 25-35) and grow at 20%
4. Sell 1,000-yen book to 10% of premium members
16

17. Strategic Model of
COOKPAD
20 million
registered
users
Broad Low- Cost
Strategy
(as of 07/2012)
1,2 million
registered
recipes
New
Strategy
Broad
Differentiation
Strategy
Narrow Low Cost Strategy
Narrow
Differentiation
Strategy
17

18. Backup
18

19. Value Chain Analysis
Firm Infrastructure
Support
Activities
Human Resource Management
Technology Development
Procurement
After
Outbound
Inbound
sales
logistics
logistics
service
Operations
Marketing/
ManufacSales
turing
19
Margin

20. 20

21. 21

22. 22

23. 23

24. 24

25. 25