Transforming e-commerce globally, Hiroshi Mikitani has been a pivotal figure in shaping the digital landscape. Born on March 11, 1965, he is a Japanese billionaire business magnate and writer, best known as the founder and CEO of Rakuten, Inc.
Mikitani’s journey from a banking professional to a billionaire entrepreneur is a compelling story of vision and determination. Having founded Rakuten in 1997, he has pioneered innovative approaches to online marketplaces, creating a hybrid model that has significantly impacted the global e-commerce landscape.
His influence extends beyond Rakuten, with significant roles in sports team ownership, philanthropy, and thought leadership in the global business community.
Key Takeaways
- Understanding Hiroshi Mikitani’s background and his role as the founder and CEO of Rakuten.
- Exploring the impact of Rakuten on the global e-commerce landscape.
- Analyzing Mikitani’s journey from banking to becoming a billionaire entrepreneur.
- Examining his influence beyond Rakuten through various roles and philanthropy.
- Understanding the significance of his innovative approaches to online marketplaces.
Early Life and Education of Hiroshi Mikitani
Born in 1965, Hiroshi Mikitani was raised in a family that valued international exposure and academic excellence. His early life in Kobe, Hyōgo Prefecture, Japan, was marked by a unique blend of Japanese traditions and international influences.
Family Background and Influences
Hiroshi Mikitani’s family background was steeped in academia and business. His father, Ryōichi Mikitani, served as Chairman of the Japan Society Of Monetary Economics and was a professor at Kobe University. His mother, Setsuko, was a graduate of Kobe University and worked for a trading company; she had also attended elementary school in New York. This international exposure had a significant impact on Hiroshi Mikitani’s early life and his perspective on global business.
- His paternal grandmother claimed descent from Honda Tadakatsu, one of the Four Heavenly Kings of shogun Tokugawa Ieyasu, highlighting a rich historical heritage.
- His grandfather was a businessman active in New York and was a co-founder of Minolta, providing early exposure to entrepreneurship and management principles.
Education at Hitotsubashi University and Harvard Business School
Hiroshi Mikitani attended Hitotsubashi University, graduating in 1988 with a degree in commerce. He then worked at the Industrial Bank of Japan from 1988 to 1996, with a break from 1991 to 1993 to attend Harvard Business School, where he gained valuable international business knowledge and experience.
The combination of his Japanese education and Harvard Business School experience created a foundation for Hiroshi Mikitani’s unique management style, blending Eastern and Western business approaches.
The Birth and Growth of Rakuten
Rakuten’s origins are rooted in the aftermath of the 1995 Kobe earthquake, a pivotal moment in Hiroshi Mikitani’s career. The devastating impact of the earthquake led Mikitani to realize the need for revitalizing Japan’s economy, prompting him to shift from banking to entrepreneurship.
From Banking to Entrepreneurship
After experiencing the 1995 Kobe earthquake, Mikitani decided to resign from his banking career and venture into the high technology business in 1996. He began exploring various business models, eventually deciding to launch an online shopping mall. This marked a significant turning point in his career, as he transitioned from a secure banking job to becoming a pioneering e-commerce figure in Japan.
Founding Rakuten in 1997
On February 7, 1997, Hiroshi Mikitani founded MDM, Inc., later known as Rakuten, with three co-founders and an initial investment of $250,000. The online marketplace, Rakuten Ichiba, was launched in Japan on May 1, 1997. Initially, the company started with 13 shops and 6 employees, but it was envisioned as a hybrid between eBay and Amazon.com, focusing on the exchange between buyers and sellers.
Expanding Rakuten into a Global Internet Giant
Under Hiroshi Mikitani’s leadership as CEO and chairman, Rakuten expanded significantly. The company was renamed Rakuten, Inc. in 1999 and taken public on the JASDAQ in 2000. This strategic decision provided capital for expansion and enabled Rakuten to grow into a global e-commerce giant with thousands of merchants and millions of customers. From its humble beginnings as a small shopping site, Rakuten has evolved into a multinational company, demonstrating Mikitani’s forward-thinking approach to digital commerce.
Hiroshi Mikitani – Founder & CEO, Rakuten: Leadership Philosophy
Hiroshi Mikitani’s leadership philosophy, as evident in his role as Rakuten’s CEO, emphasizes the importance of adaptability, innovation, and global competitiveness. As the founder and CEO of Rakuten, Mikitani has implemented bold leadership strategies that have distinguished his management style in the business world.
The “Englishnization” Initiative
In March 2010, Mikitani introduced the “Englishnization” initiative, making English the primary language of Rakuten within two years. This move was seen as a bold step towards creating a global company, despite criticism from some Japanese business leaders. Mikitani believes that “English is not an advantage anymore – it is a requirement.” This initiative has been instrumental in enhancing Rakuten’s global competitiveness.
Business Principles and Management Style
Mikitani’s leadership philosophy emphasizes adaptability, global thinking, and technological innovation – principles that have guided Rakuten’s expansion into diverse business areas beyond e-commerce. His approach to team building and corporate culture reflects a blend of Japanese values and international business practices, creating a unique management style that has attracted global talent to Rakuten.
Published Works and Business Insights
Mikitani has published several books, including Principles for Success (2007), Marketplace3.0: Rewriting the Rules of Borderless Business (2013), The Power to Compete: An Economist and an Entrepreneur on Revitalizing Japan in the Global Economy (2014), and Business-Do: The Way to Successful Leadership (2018). Through his published works, Mikitani has shared his business insights and management principles with a worldwide audience.
| Book Title | Year Published | Key Insights |
|---|---|---|
| Principles for Success | 2007 | Leadership principles for success |
| Marketplace3.0 | 2013 | Borderless business principles |
| The Power to Compete | 2014 | Revitalizing Japan in the global economy |
| Business-Do: The Way to Successful Leadership | 2018 | Successful leadership principles |
Beyond Rakuten: Mikitani’s Broader Impact
The impact of Hiroshi Mikitani is multifaceted, encompassing not only his role at Rakuten but also his contributions to sports, cultural institutions, and economic policy.
As the CEO of Rakuten, Mikitani has been instrumental in shaping the company’s global presence. However, his influence extends far beyond his role at Rakuten. He has been a significant figure in Japanese sports, owning the Vissel Kobe football club and the Tohoku Rakuten Golden Eagles baseball team. His ownership of these teams demonstrates his commitment to supporting Japanese sports and communities affected by natural disasters.
Mikitani has also made a significant impact on cultural institutions, serving as the Chairman of the Tokyo Philharmonic Orchestra. This role has allowed him to bring his business acumen to the arts sector, supporting cultural institutions while promoting innovation.
Furthermore, Mikitani has been a key figure in promoting economic reform and innovation in Japan through his founding of the Japan Association of New Economy (JANE), where he serves as Representative Director. His philanthropic efforts, including a significant donation to Ukraine during the Russian invasion, reflect his global outlook and commitment to humanitarian causes.
Through his various roles, Mikitani has leveraged his experience and success to shape content and conversations across multiple sectors, demonstrating his willingness to challenge established systems and create new platforms for forward-thinking companies and entrepreneurs.
## FAQ
### Q: What is the significance of Harvard Business School in Hiroshi Mikitani’s life?
A: Hiroshi Mikitani attended Harvard Business School, where he gained valuable insights into business management and entrepreneurship, which he later applied to build Rakuten into a global e-commerce giant.
### Q: What is Rakuten’s current status in the e-commerce industry?
A: Rakuten has evolved into a leading global e-commerce company, operating a diverse range of businesses, including online shopping, digital content, and financial services, with a presence in over 50 countries.
### Q: What is the “Englishnization” initiative implemented by Hiroshi Mikitani?
A: The “Englishnization” initiative is a business strategy implemented by Hiroshi Mikitani, where Rakuten adopted English as its official corporate language to foster a more global and inclusive work environment.
### Q: What is Hiroshi Mikitani’s role in the Tokyo Philharmonic Orchestra?
A: Hiroshi Mikitani serves as the Chairman of the Tokyo Philharmonic Orchestra, where he contributes to the promotion and development of classical music in Japan.
### Q: How has Hiroshi Mikitani’s background in banking influenced his approach to e-commerce?
A: Hiroshi Mikitani’s experience in banking has given him a unique perspective on the e-commerce industry, enabling him to leverage his understanding of financial services to drive Rakuten’s growth and expansion.
### Q: What is the significance of the Japan Association of New Economy?
A: The Japan Association of New Economy is an organization that promotes the development of new economy and digital industries in Japan, with Hiroshi Mikitani playing a key role in its activities.