Report on Case Study: Walmart Japan

Topics: Department store, Retailing, Supermarket Pages: 3 (1210 words) Published: January 7, 2013

Question 1: How would you characterize Wal-Mart’s approach to global management? The trademark of Wal-Mart’s global management approach focuses on 3 main strategies: low price, best value, large selection of goods & high quality service. Being the world’s largest retailer, Wal-Mart will enter the international market by providing a wide variety of products at a lower price than its domestic competitors. In addition, one of the common strategies of Wal-Mart is to partner or acquire a local supermarket retailer who has already had a good knowledge of the market in order to save time & money. Wal-Mart is also famous for its great use of distributor network. They pay a lot of attention to choosing a good location when expanding their business, a strategy which has been proven successful in its original US market. Question 2: Do you agree with Wal-Mart’s entry strategy in Japan? What are some of the inherent risks? Do you think that a faster market entry would be more effective? In my opinion, Wal-Mart’s entry strategy in Japan (slow-and-steady) is quite appropriate with Japanese retail environment and economic situation. However, there are many challenges need to be overcome in this potential market: 1. Socio-cultural Differences: In Japan, consumers often equate bad quality with low price. Changing consumer perceptions is not easy or cheap. In addition, Japanese customers demand a quick entry and exit from the stores which makes cutting costs by eliminating staffs from the retail process unadvisable. 2. Fierce Competition: It is unavoidable that there are many strong domestic rivals in a highly potential retail market like Japan. 3. Distribution System: Traditionally, Japan's multilayered distribution networks have notoriously made selling merchandise more expensive for retailers. Wal-Mart's desire to remove middle man and wholesalers from this network is quite challenging. These above obstacles...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Walmart Case Study
  • Essay on Walmart Case Study
  • Case Study on Walmart Essay
  • Walmart Inc Case Study Essay
  • Walmart Case Study Essay
  • Essay about Walmart Case Study
  • Case Study Walmart Essay
  • Walmart Case Study Analysis Research Paper

Become a StudyMode Member

Sign Up - It's Free