How Rakuten Built a Tech Empire by Breaking the Rules

Why It Matters

Rakuten’s rule‑breaking strategy shows how cultural overhaul and ecosystem thinking can turn early‑stage skepticism into lasting global competitiveness, guiding other companies aiming to scale beyond domestic borders.

Key Takeaways

• Rakuten forced English use, reshaping Japanese corporate culture.
• Early e‑commerce focus on small merchants built lasting revenue engine.
• Virtualized, cloud‑native mobile network defied industry norms, now profitable.
• Loyalty ecosystem links credit, travel, mobile, driving cross‑sell growth.
• Global sports sponsorships amplify brand, supporting Rakuten’s international ambitions.

Summary

The video chronicles how founder Hiroshi Mikitani built Rakuten into a tech empire by repeatedly breaking conventional rules. From the early 1990s, when most doubted the profitability of internet commerce, Mikitani launched Rakuten Ichiba, targeting tiny merchants and teaching them to use computers, laying the foundation for today’s biggest revenue stream.

Key strategic moves include mandating English as the corporate language—an aggressive cultural shift that attracted global talent, with 70% of engineers now non‑Japanese—and creating a fully virtualized, cloud‑native mobile network that defied industry playbooks. Rakuten’s loyalty ecosystem, spanning credit cards, travel, and mobile services, fuels cross‑selling, while high‑profile sports sponsorships—from the Golden Eagles to Barcelona— amplify global brand visibility.

Notable milestones underscore the payoff: Rakuten Mobile reached 10 million subscribers by December 2025 and posted its first full‑year EBITDA profit in 2025. Mikitani cites AI‑driven efficiency gains of 10%‑20% that could lift profits by 50%‑60%, and he continues to champion entrepreneurship as a catalyst for Japan’s economic revival.

The story illustrates that cultural disruption, long‑term ecosystem investment, and bold technological bets can transform a domestic startup into a worldwide powerhouse, offering a blueprint for firms seeking sustainable growth in an increasingly globalized market.

Original Description

Rakuten began as an online marketplace at a time when few believed the internet could support a real business. Nearly three decades later, it has grown into one of Japan’s best-known tech companies, spanning e-commerce, fintech, telecom and digital services.

In this episode of “Managing Asia,” founder and CEO Mickey Mikitani looks back on the decisions that shaped Rakuten’s growth — including his early conviction in the internet, his push to make English the company’s common language and his willingness to take on Japan’s entrenched mobile players.

He also shares why Rakuten is now focusing on artificial intelligence, how he approaches long-term investment and what he hopes the company can represent for the future of Japanese entrepreneurship.

Watch Christine Tan’s interview with Mickey Mikitani by clicking the video above.

#CNBC #ManagingAsia #Rakuten

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