Tesco Fail in Japan

Topics: Supermarket, Wal-Mart, Hypermarket Pages: 1 (260 words) Published: August 27, 2013
Management Decision Case : Tesco Serves Up Japanese Expansion

Given the highly competitive nature of the Japanese retail food market and failure of global leaders Wal-Mart and Carrefour to successfully penetrate the Japanese market, do you believe Tesco’s decision to open Tesco Express is a good idea? Why or why not? Not a good idea. Why?

Cultural differences between the UK market and the Japanese market for groceries. Japanese doesn’t wanna change (even Walmart and Carrefour failed). So, it is difficult to penetrate into Japanese market Tesco needs volume (to make profit) due to the operation cost. Japanese only wants their local product (since there is already 40000 convenience store in Japan) Quality & Standard. The reason of Walmart n Carrefour failure was the quality since Japanese is willing to pay for higher-quality food that is convenient.

come with express first but no capability since their model works with bigger supermarket (risky)
Japan, the world’s third-biggest grocery market remains a difficult country to make money from as International retailers

How would you describe the retail strategy for Tesco Express as it expands in Japan?
Unique mix of convenience store and supermarket featuring higher-quality fresh food, ready-made meals, and certain supermarket items found in its larger, traditional Tesco Supermarket.
Convenience store offering quality, ready-made food and limited supermarket items (not currently served by traditional Japanese convenience stores such as 7-eleven, Lawson, Circle-K Sunkus, or the larger more traditional grocery stores such as Aeon and Daiei)

Focuses on the delivery of fresh ready-made foods.
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