Case Abstract:
The focus of this case study is the hurdles faced by retailing giant Wal-Mart in the Japanese market. WalMart’s best practices in retailing like Every Day Low Prices (EDLP) and Rollback to the Japanese market through its joint venture with Seiyu…In December 2005, Wal-Mart acquired a controlling 50.9 percent stake in Seiyu. However, Wal-Mart has since found it difficult to save the company even after investing more than one billion dollars. The company is revamping stores in hopes of drawing new customers. After exiting from Germany and South Korea last year (because it could not adapt to local tastes), Wal-Mart wants to maintain its presence in Japan. Success in Japan is important to Wal-Mart because a strong presence in the world’s No. 2 retail market is a key driver to future business growth.
Introduction – Wal-Mart in US Retail Market
Wal-Mart is the world’s largest retailer with $345 billion in sales for the fiscal year ending Jan. 31, 2007. Wal-Mart Stores, Inc. includes Wal-Mart Supercenters, discount stores, Neighborhood Markets and SAM’S Club warehouses. Wal-Mart employs 1.9 million associates worldwide ….
Case Study Contents
- Introduction – Wal-Mart in US Retail Market
- Wal-Mart – Company Background
- Wal-Mart – Timeline
- Wal-Mart: Quick Facts
- Wal-Mart’s turnaround quest: Will Wal-Mart’s mass-market formula work in Japan?
- Wal-Mart increases stake in Japan’s Seiyu to 95%
- Localization Strategy – WalMart’s failure in Germany and South Korea
- Cost-Leadership Strategy- WalMart’s core philosophy – EDLP
- Cheap stuff at cheap prices – Japanese consumer mindset
- Is Wal-Mart the only one struggling in Japan?
- Will Seiyu get to U.S.-style EDLP in Japan?
- Store Formats
- Related Reading
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