Analysis of Wal-Mart in Japan

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Executive Summary

The case study focuses on the hurdles and strategic failures that Wal-Mart faced during its expansion and entry into Japan and its hugely attractive Retail Market. The study throws light on the rise of the world’s major Retailers “Wal-Mart”. In course of their expansion with the time they benefitted from success as well as disastrous results in their journey to “Go Global”

Wal-Mart got in to Japan’s smart retail market as a joint venture with “Seiyu” which was a very mistaken step at first. The violent retailing giant fight back in the Japanese market even with their most excellent trade policies and best prices offered, they were unsuccessful to identify with the Japanese culture their customer behaviour, which was a obvious case of cultural slip and not learning a lesson from its previous slip up in Germany, South Korea and Indonesia. (EDLP) “Every Day Low Prices” and Roll Back being a vibrant business plan and was strongly carried by a very aggressive pricing policy, world best supply chain distribution system equipped with superior technology driven inventory management system and with the minimum promotion and advertisements expenditures these retail giants were generating profits on a large scale even with a low cost scheme Wal-Mart failed to distinguish between operational and cultural environment differences in US and Japan.

This case study also reports details in the reasons that affected Wal-Mart and also recommends the need of extensive study of culture and Management that is necessary and the way it should be put into practice in order to keep Wal-Mart from falling Apart in Proud and profitable market of Japan.

INTRODUCTION:

1960’s

The USA retail giants of con...

... middle of paper ...

...liam, Why Wal-Mart can't find happiness in Japan.CNN money Fortune, (July 27, 2007). Retrieved on March 3, 2014, from

http://money.cnn.com/magazines/fortune/fortune_archive/2007/08/06/100141311/

ICMR, Wal-Mart Struggles in Japan. Retrieved on April 4, 2014, from

http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/Wal-Mart%20Struggles%20in%20Japan.htm

Kotabe & Kristiaan Helsen, Global marketing management. (2009). Hoboken.

Retrieved March 2, 2014, from

http://globalmarketingtoday.wordpress.com/the-real-world/case-study-1/

Mui Ylan Q, as growth in U.S. slows; Wal-Mart puts more emphasis on foreign stores, Wal-Mart goes Global, Washington post. (June 19, 2010). Retrieved March 2, 2014, from

http://daveporter.typepad.com/global_strategies/2010/06/wal-mart-goes-global.html

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