Abstract

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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Nature and structure of the Japanese retailing industry including its size, scope, spread, and unique characteristics
• Impact of competition, culture, and unique environmental factors on the performance of a firm in the international market
• Influence of regulation on the success of a company in such markets.

Keywords

Wal-Mart Stores Inc., Every Day Low Prices, Carrefour, Daeiei, America Online Inc., Sam's Clubs, Joint Venture, Wholly-owned subsidiary, Green Field Operations, Acquisitions, Costco Wholesale, Metro, Tesco, Japanese Retail Industry, Ito Yokado , Large Store Law