Walmart Adventure in Japan

8/9/2019 Walmart Adventure in Japan

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WAL-MART S ADVENTURE IN JAPAN:You Cant Please All Of The People All Of The Time

Presented By:Gaurav MittalVarun Shanker

Ravi Bhakt

DoMS NIT TRICHY


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Wal-Mart Philosophy

Rule # 1: The customer is always right

Rule # 2:If the customer happens to be

wrong, refer to Rule # 1


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Wal-Mart a snapshot

Wal-Mart is the largest private employer andthe largest grocery retailer in the UnitedStatesThe world's largest public corporation byrevenue, according to the 2008 Fortune Global500Revenue > US$ 404.16 Billion ( 2009 )Operates in 18 countries


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Japanese Culture

Companies supported society by providing good jobs with lifetimeguarantees of employment.Japanese companies tended to be viewed as job-creating machines

Jobs cuts are viewed as detrimental to Japanese societyJapanese media is more emotional than its American counterpartsShopping is spread throug-oht the week, and is often done bybicycle or on foot

Consumers wanted to see the details in print to compare (Chirasi )yasukarou, warukarou if it s cheap, it s bad

Great Taste for ShashimiFood in Japan changes with the seasons


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Abstract

Wal-Mart expansion plan in JapanIts struggle with the retail corporation Seiyu

The mistakes committed by Wal-Mart inunderstanding the Japanese MarketThe steps taken by the retailer to please theJapanese customers


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Mistakes

Failed to understand Japanese Corporate CultureShattered company s image by Japanese Media

Lack of understanding of Japanese consumersbuying patternFailed to understand Japanese consumer s qualityperception

Failed to communicate benefits to the customers


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Mistakes (cont )

Standardization of product

Lack of financial consolidation with SeiyuFailed to introduce fashionable productsNot preferred retailer by the suppliers

Japanese consumers are very nationalistregarding the products they purchase,especially for American companies


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Solutions

To make shopping memorable experienceFocus on the cost cutting measure

Through the technological involvement Change people s perception that it creates more

jobs in-directly s compared to jobs cuts at store

Better communication strategy Low price vs. quality Re-branding exercise


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New store format Smaller store size with multiple

location Better visual merchandising Increase in product range,

especially the foreign goods

New pricing strategy Differentiating between Luxurious

goods and food products


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Supply Chain Re-engineering More emphasis on seasonal products

Decentralize strategy for local and seasonal goodsBackward supplier integration

Becoming the preferred retailer Removing the multiple layer


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CSR initiative Helped for visually impaired

persons Earthquake relief funds and

activities Investment in renewable energy Social environmental

awareness(Go-Green ) programsto build image


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THANK YOU

Walmart Adventure in Japan

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