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Paper 5 Wal-Mart

Paper 5 Wal-Mart - Shin Jae 21472705/Section 102 Wal-Mart...

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Shin, Jae 21472705/Section 102 Wal-Mart in Japan Wal-Mart has the best shot of success in Japan. In order to be successful, Wal-Mart will have to create an unassailable, competitive advantage in the Japanese market. According to the article, Japan’s current multi-layered distribution system and cultural resistance to the discount model are huge barriers to Wal-Mart’s traditional approach to business. However, with the depth of the current global recession, Japanese consumers’ unfavorable attitude toward the discount model is shifting, “finally accepting to buy quality merchandise for lower price.” (Boyle) Wal- Mart’s success in Japan will heavily depend on its localization and cost-leadership strategies, as well as increasing the stake in the competitive market and channeling through the cultural differences. The article “Wal-Mart’s Painful Lessons” offers relevant insight as to why Japan, among the four countries described, would be the most reasonable choice for Wal-Mart’s success.
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