Nature and structure of the Japanese retailing industry including its size, scope, spread, and unique characteristics

Wal-Mart Struggles in Japan

Nature and structure of the Japanese retailing industry including its size, scope, spread, and unique characteristics

The case focuses on how retailing giant Wal-Mart struggled in the Japanese market. It elaborates on the reasons for Wal-Mart’s decision to go global in the early 1990s. The case discusses in detail Wal-Mart’s entry strategy and describes its efforts to bring in its best practices in retailing like Every Day Low Prices (EDLP) and Rollback to the Japanese market through its joint venture with Seiyu. 

The case details the problems that Wal-Mart faced in Japan because of the differences between the operational and cultural environment in its home market and the Japanese market. It finally ends with a discussion on the company’s future prospects in Japan.

Issues:

  1. Nature and structure of the Japanese retailing industry including its size, scope, spread, and unique characteristics

  2. Entry strategy for an overseas market

  3. Impact of competition, culture, and unique environmental factors on the performance of a firm in the international market

  4. Influence of regulation on the success of a company in such markets

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