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- Second largest consumer market
- Recovering economy
- Possibility to work with valuable partners
- fifth largest supermarket retailer
- focused on city centre grocery stores
- Acquiring a minority stake, progressing to majority stake
- Eliminating middlemen from the supply chain
- implementing their own distribution system
- focus on sociocultural differences of consumers and employees
- leading trading company
- solid business base and knowledge about retail sector
Wholesaler
The Store
Walmart Warehouse
The Store
Walmart Trucks
- working with wholesalers
- competition reacted due to slow entrance
- high staff costs
- Decreasing numbers in the first years
- cutting costs, increasing revenues
- Marketing adjustments
1 General information
2 Foreign strategies
3 Analysis of the Japanese Retail Market
4 Wal-Marts Japan Strategy
5 Recommendations
Market situation?
Cultural differences?
Acquiring a weak player
Acquiring a dominant player
Joint-venture
- Human resource management
-> Educate the workforce, but adapt to their culture
- Marketing
-> Educate the customer
-> Otherwise: "Act global, act local" - adapt to the premium-loving japanese society
- Distribution network
-> Combat the prevailing supplying system
Porter's Five Forces
PEST Analysis
- Many international competitors have failed already
- Carrefour entered Japan in 2001
- Carrefour left Japan in 2005
- Experience and capital are vital
- Wealthy population
- Low switching costs
- High variety of similar stores
- Wide range of alternatives
- Democratic country
- Favourable entry regulations
- Low degree of violence & corruption
- Distress among the residents
- 2nd largest economy in the world
- GDP per capita $33,100
- The lost decade
- Unemployment rate of 4.1%
- Mature Market
- Wal-Mart is a unique brand in the U.S.
- Lots of local retailing shops
- Downtown areas are heavily saturated by retail stores
- Brand loyalty has to be questioned
- Emerging stores such as Uniqlo increase the rivalry
- Extreme rivalry in the city centres
- Lots of traditional local retailers
- Multi-layered distribution networks
- Supplier tradition is very ensnared
- Many international competitors collapsed on this
- Aeon shows how it could work
- Population of 127,400,000
- Aging and shrinking population
- Government encourages birth rates
- Low fertility rates
- 99% literacy rate
- 2nd largest budget for research & development
- Leading nation in:
- Scientific research
- Technology
- forwarding low prices to customers
- initially located in small towns
- own distribution system
- marketing of american products
- always low prices
- Purchasing power due to 50% market share
- In-bound logistics
- Store location
- Human resource management
- Marketing
Costco
Metro
Target
Carrefour
-Born March 29th 1918 in Oklahoma
- College life in Reserve Officers' Training Corps
- Purchase of a Ben-Franklin store 1945
- 1962 opening of the first Wal-Mart Store
- Died 1992 at the age of 74
- Left a rich heritage
- 1962: First store in Arkansas
- 1968: Oklahoma and Missouri store openings
- 1969: Incorporating as Wal-Mart Stores Inc.
- 1977: First acquisition: 17 Mohr-Value Stores
- 1991: First international store in Mexico
- 1998: Acquistion of 21 Wertkauf stores
- 2005: 6200 Facilities worldwide
Porter's National Diamond
- Strong workforce
- Manufacturing know-how
- Balanced skilllevel of workers
- Strong transport system and infrastructure
- High labour costs
- 2nd largest consumer market
- Wealthy nation
- Low prices reflect inferiour quality
- Different shopping behaviour
- Prefer different sales management
- High market potential
- Mature market
- Sophisticated customers
- Complex distribution & supplier network
- Expensive property
- Extreme cultural differences
- Favourable economic climate
- Multi-layered distribution networks
- Make merchandise more expensive
- Unfamiliar territory for Wal-Mart
- Fairly moderate rivalry
- High rivalry in city centres
- Small and medium shops
- No supercentres outside towns