Walmart in japan case study solution

Tesco Entry and Exit from Japan Case Analysis
Subject
Business Finance

Question Description
Prepare a 2–3-page case analysis on the following case study on global HRM strategic management and why it is critical to the success of an organization in meeting its goals and mission. In your analysis, respond to the following question: What is strategic management and why is it critical to the success of an organization in meeting its goals and mission globally?

Your analysis of this case and your written submission should reflect an understanding of the critical issues of the case, integrating the material covered in the text, and present concise and well-reasoned justifications for the stance that you take.

Tesco® – Entry and Exit from Japan

In September 2011, Tesco, the British supermarket group and the world’s third-biggest retailer announced its exit from Japan after 8 years in the country. In the event, Tesco became the latest in a long list of foreign retailers to exit from Japan. This case study highlights why many International supermarket chains like Tesco have been unsuccessful so far in a difficult Japanese market.

“Let’s be honest, Japan was a short, expensive adventure for us,” Jose Luis Duran, Chief Executive of Carrefour in March 2005 on its exit from Japan “These retailers brought into Japan their business formats without adjusting for Japan. It’s not as if a wholesale-club-type concept will not take off here, but there has to be some modification.” – Masayoshi Saotome, research director at Mitsubishi® Research Institute Inc.

Japan, the world’s third-biggest grocery market, remains a difficult country to make money from as international retailers Walmart® and Carrefour have found out. Walmart has not done great in Japan with its presence since 2002 through Seiyu. When Carrefour had entered Japan in 2000, it had made huge claims on revolutionizing retailing in the country. However, in 2005, Carrefour swapped its Japanese assets for Tesco’s assets in Taiwan. In September 2011, Tesco, the British supermarket group and the world’s third-biggest retailer announced its exit from Japan after 8 years in the country. In the event, Tesco became the latest in a long list of foreign retailers to exit from Japan.

Seven & I Holdings® and Aeon® dominate Japan. Even British drugstore chain Boots pulled out of Japan owing to increased competition and deflation. Additionally, Japan’s Byzantine distribution system of closely-knit web of suppliers and consumers’ fickle taste is the reason behind many retailers struggling. Many analysts attribute the failure to misreading Japanese consumers’ mindset. However, the competitive Japanese retail market is a tough arena, not just for foreign retailers but also for local Japanese department stores. Local stores also have been struggling with price deflation and ever-increasing specialty stores.