CASE 5 WAL-MART JAPAN WORLD’S LARGEST RETAILER CAN’T MAKE A YEN In Tutorial Library

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TITLE: CASE 5 WAL-MART JAPAN WORLD’S LARGEST RETAILER CAN’T MAKE A YEN

UNIVERSITY / INSTITUTE: Purdue University

CLASS / COURSE: MGMT 38000

QUESTION DESCRIPTION:

MGMT 38000 INTERNATIONAL BUSINESS

CASE 5  WAL-MART JAPAN WORLD’S LARGEST RETAILER CAN’T MAKE A YEN

Wal-Mart entered the Japanese market in 2002 with a minority stake in the Japanese retailer, Seiyu, hoping to duplicate its success that started in the United States in the world’s second largest economy. Japan has a population of 127 million, and a very high disposable income level. Wal-Mart has demonstrated strong commitment to the Japanese market by an additional $1 billion in order to acquire a 51% stake in Seiyu. In 2007 Wal-Mart increased its ownership through an additional investment of approximately another $1 billion to acquire 95.1% ownership of Seiyu. The company also has a plan for control of the remaining shares. Wal-Mart felt that additional ownership would allow for greater flexibility and more rapid decision making, independent of its Japanese partners. Wal-Mart’s investment in Japan represents a significant part of the company’s overall international presence strategy. While Wal-Mart has been very successful in other international markets, including Mexico and China, it has not been very successful in Japan. Wal-Mart has yet to earn a profit from its 393 Japanese stores. ................. 

Discussion Questions:

 

1.         Do you think Japan is a good market for Wal-Mart? Explain.

2.         What were the most significant mistakes Wal-Mart made in Japan?

3.         What suggestions do you have for increasing the financial      performance of Seiyu?

 

 

 

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SUBJECTS / CATEGORIES:
1. Marketing
2. Strategic Business Management

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