Wal-Mart struggled to succeed in the Japanese market for several reasons. It failed to understand Japanese consumer preferences and traditions. In particular, Wal-Mart did not adopt the "chirashi" system of marketing partnerships between wholesalers and retailers that is common in Japan. Wal-Mart also faced strong competition from discount stores and faced criticism for its practices around employee treatment and product quality. While Wal-Mart saw potential in the large Japanese retail market, it did not properly tailor its approach to the local context.

1. WHY WAL-MART D’INT WOO JAPAN BHARATH B K ANUP ASHOK ?

2. HISTORY OF WALMART 1962, SAM WALTON starts WAL-MART Wal-Mart Discount City, Rogers, Arkansas In 5 years expanded to 24 stores revenue more than 12.6 million in sales

3. History Expands outside Arkansas Becomes Wal-Mart Stores, Inc . in 1969 1972, listed in New York Stock Exchange Grew rapidly during 80’s and 90’s Today, World's second highest-grossing corporation

4. WAL-MART TODAY Operates 6,500 stores in 15 countries Serves more than 176 million customers around the globe Employs 1.8 million worldwide Health plans insure more than 1 million people Saves the average American household more than $2,300 per year

5. SUBSIDIARIES WAL-MART Stores Division U.S. WAL-MART Discount Stores WAL-MART Supercenter WAL-MART Neighbour Market SAM’S CLUB

6. PRINCIPLES AT WAL-MART Respect the Individual Service to Our Customers Strive for Excellence NEW CONCEPT – Every Day Low Prices (EDLP)

7. Expansion of WAL-MART EXPANDS IN 1991 TO SOUTH AMERCIAN COUNTRIES AND EUROPE INTIALLY FAILS AT MEXICO, SUCCEEDS LATER ON JOINT VENTURE WITH CIFRA ITS SALES REPRESENT ALMOST 2 PERCENT OF MEXICO'S GROSS DOMESTIC PRODUCT CONTROLS ALMOST 30 PERCENT OF ALL SUPERMARKET FOOD SALES

8. Key to success in MEXICO Sell everything under the sun at a lower price than anyone else. Hurt the guy next door. Make people come to you, hence making local sellers JOBLESS

9. WHAT WENT WRONG IN GERMANY? Anti American feeling High Taxes levied by Authorities Lower Wages Inhumane practices that had an outcry in the US itself

10. WHAT WENT WRONG IN GERMANY ? STRONG LABOUR UNION STOPPED CERTAIN DAILY HABITS LIKE CHANT-OFF BY EMPLOYEES CLOSED A PARTICULAR UNIT AND SACKED ALL EMPLOYEES OVERNIGHT IMPROPER SELECTION OF SHOP AREAS

11. JAPANESE MARKET THINK OF BIG INVESTMENT IN JAPAN BUYS SEIYU, CONTROL OF 38% SHARES REPORTS HUGE LOSSES BY YEAR END

12. WAL-MART’S ANALYSIS OF JAPAN Younger Japanese spend more time at shopping malls Forecasts average spending of Japanese as $ 30 Estimate Japanese Retail Market at $1.3 trillion

13. COMPETITION IN JAPAN FOR WAL-MART WHOLESALERS SOLD ONLY TO SELECT SUPPLIERS CUT-RATE OUTLETS SUCH AS 100-YEN SHOPS HAVE FLOURISHED WAYS TO OVERCOME THE TRADITIONAL “CHIRASHI” SYSTEM

14. WHAT WAL-MART DID… DID NOT CONSIDER THE TRADITIONAL WAY OF SELLING CONCENTRATED MORE ON LOWERING COST OF THE PRODUCT SACKS MORE THAN 25% OF FULL TIME EMPLOYEES TO CUT BILLS

15. WHAT WAL-MART DID… OPENS “SUPER CENTER” LARGER THAN THAT IN U.S. FAILURE TO ADOPT “CHIRASHI” SYSTEM OF MARKETING CONCENTRATES MORE ON HEAVY DISCOUNTING METHODS WHICH NEVER WENT RIGHT ATTRIBUTES LOSS TO LOW SEASONAL SALES AND UNUSUAL WEATHER

16. MORE WOES TO WAL-MART DID NOT IMPLEMENT THE EDLP METHOD SELLS WHALE AND DOLPHIN MEAT IS CRITICIZED BY ENVIRONMENTAL AGENCIES MOST OF ITS PRODUCTS HAD MORE MERCURY LEVELS THAN REQUIRED GLITCHES IN COMPUTER SYSTEM HOSTILE GREETING TO OUTSIDE RETAILERS BY LOCALS

17. WHAT WAL-MART HAD TO DO REDUCE SACKING OF EMPLOYEES EMPLOY TRADITIONAL METHODS SHOULD HAVE PATRONIZED MULTISTOREY STORES WITH GOOD SERVICE IN CITY CENTERS INCREASE THE QUALITY OF GOODS AND SERVICES

18. STILL WAL-MART HAS A LONG JOURNEY IN JAPAN TO SUCCEED… THANK YOU