Walmart

Discuss the strategic changes Wal-Mart’s Japanese rivals are making in response to the entry of Wal-Mart.  What does this tell you about the power of Wal-Mart?  What changes has Wal-Mart had to make to attract Japanese consumers?  What can Wal-Mart learn from this experience?  Finally -- if you were in charge of Wal-Mart Global Operations would you use the same tactics used in the expansion into Japan when you move into other countries?  Why or why not.

I was recently reading up on Wal-Mart and came across an interesting article on their strategic plans for the Japanese market.  They have not found as great amount of success in Japan as they have in other global markets and there are various reasons for this.  Most likely it is because Wal-Mart’s generic low-cost, low-price strategy does not easily translate in the Japanese culture.  The Japanese consumers traditionally associate low prices with poor quality.

Though, given this information, a great deal has changed since Wal-Mart entered Japan ten years ago.  Most notably Japan has felt a major effect from the economic crisis and their preferences and spending habits have changed considerably.  Wal-Mart has been able to adjust its earlier strategy and is now trying to capitalize on the market traits that now benefit their generic low-cost, low-price strategy.  For one, Wal-Mart is now offering products that target Japan’s aging population.

Despite these localized changes, Wal-Mart still only has 2.6 percent market share and Japan accounts for just 2.5% of Wal-Mart’s $443 billion in revenue in 2011 (source).  However, Wal-Mart will add 22 stores in Japan, their first expansion since 2008.

Prior to the economic crisis, these consumers may have spent more money to acquire items that made them feel as though they belong within their culture.  This directly links to the collectivist theories of the Japanese culture.  Now, in times of need, these consumers are willing to somewhat neglect this factor in order to...