Wal-Mart stand as the largest company in the world. In France, United Kingdom, Puerto Rico, Mexico, Germany, this company is successful. To enter the Japanese market, Wal-Mart decided to invest in a large, ailing called Seiyu.(西友)In many ways, Seiyu chose Wal-Mart before Wal-Mart chose Seiyu. Wal-Mart would take it to 67% ownership by 2007. However, the French company Carrefour failed in Japanese market. How should Wal-Mart do for success in Japanese market? For example, unlike Wal-Mart's strategy in many foeign markets, in Japan it decided to keep the esteemed Seiyu brand, which was well-known and trusted.

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id:MC2 No.1



One challenge Wal-Mart is facing is it is difficult to build a big mall suburbs. I think new law is launched and now all big retailors profibited to build new big malls such as JASCO etc.. This is Japanese gorvenment strategy to protect medium & small size companies.

But more than that, the actual challenge is "Everyday low price" can not be attractive to everyone especially in developed countries.

People can get what we need to live our lives without any problems. Livingwares doesn't show attractive price differences anymore in many stores.

So, if wal-mart wants to be successful as retailor, wal-mart need to sell more value added and design oriented consumer goods which is relative high price and doesn't match with wal-Mart's "everyday low price".

One hidden asset wal-mart has is logistics system they developed. By releasing this sytem and providing consulting to other companies, I see wal-mart's way to survive in Japan. This is an analogy with Amazon released their API.

As IBM become a IT consulting and sold their thinkpad business and Amazon & google release their core softwares. My suggestion is Wal-Mart transform from retailor to logistics consulting company.