The document discusses Walmart's entry into the Japanese retail market and examines factors contributing to historically low foreign direct investment (FDI) in Japan. It outlines potential benefits of greater FDI for the Japanese economy, challenges Walmart faced in achieving profitability, and reasons for its 2012 announcement to expand operations in Japan despite previous stagnation. Key issues include cultural misunderstandings, competition with local retailers, and strategic shifts in business practices.

1. Welcome to our presentation
about:
Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc., a Top 100 company
Your Date HereYour Name

2. Walmart in Japan
Case Discussion Question
 Why, historically, has the level of FDI in Japan been so low?
 What are the potential benefits to the Japanese economy of Greater FDI?
 How might the entry of Walmart into the in Japanese retail sector benefit that sector?
 Who could lose as a result of Walmart s entry?
 Why has it been so hard for Walmart to make a profit in Japan? What might the company have done differently in its early years in
Japan?
 Why did Walmart announce in late 2012 that it would expand its operations in Japan after opening no new stores in four
years?
Your Footer Goes Here
2

3. Group Members
Name ID
Jubayer Alam 161-11-299
Md. Rahid Hasan 161-11-279
Shahida Akter Bepary 161-11-277
Md. Maheduzzaman Hashib 161-11-302
Kawser Ahmed 161-11-264
Suraya Yasmen 161-11-280

4. Why, historically, has the level of FDI in Japan been so low?
The following reasons has been responsible for low level of FDI in Japan:
• Japan’s isolated geographical location and historical factors.
• Government regulation until the 1990s which forbade foreign firms to enter Japan.
• Large scale retail store law that was repealed in 1994.
• Resistance to acquisition.
• Cultural differences; different consumer expectations.
• Fear of restructuring the economy and system by foreign owners as they viewed foreign involvement in the
economy as threat.
• Slow economic growth, less consumer spending, aging population.

5. What are the potential benefits to the Japanese
economy of greater FDI?

6. The potential benefits to the Japanese
economy of greater FDI:
Faster revenue growth than domestic firms.
 Significantly higher profitability and sales margins than
domestic firms.

7. The potential benefits to the Japanese economy of
greater FDI:
Greater capital investment per employee than domestic firms.
Higher total factor productivity than domestic firms.

8. The potential benefits to the Japanese economy of
greater FDI:
Higher spending on research and development per worker than domestic firms.
Higher average wages than domestic firms.

9. How might the entry of Walmart into the in
Japanese retail sector benefit that sector?
1. Boosting Productivity-
2. Cutting Edge Information Systems-
3. Low Cost Goods-
4. Improved Customer Service-
5. Extended Opening Hours-

10. Who could lose as a result of Walmart’s entry?
 Local shop
 Local retailer
 suppliers

11. Why has it been so hard for Walmart to make a profit in Japan?
What might the company have done differently in its early
years in Japan
 Cultural misunderstanding
 consumer buyer behavior
 Supply chain management
 Importing Food
 Low Quality product

12. Why did Walmart announce in late 2012 that it would expand
its operations in Japan after opening no new stores in four
years?

13. > develop their product Quality
> change their Business strategy
> For competing with Seiyu Walmart aimed at its US Best practices shift from storage.
> The retailer has created special products like "298-Yen Bento" at $4.
> Stock their prudects in lower price
> For Survival in the competition they start importing some product form other countries. For example: They import
Grapes from California at 20% less then market price of Japan.
> They develop services for their customers. Like Improving Customer care service, Increasing service time etc.