One of Carrefour's criteria for entering a new market is that small-scale rationalization and reorganization were not in effect and that large-scale chain supermarkets were absent from the market. However, at the time of entry, Japan already had large-scale special discount stores for clothing, electrical appliances or furniture. With strong competitors in the market, it would have been difficult for Carrefour to establish a strong entry presence.
When Carrefour entered the Japanese market, the real estate prices were high. Carrefour's global store strategy of obtaining a large amount of floor space at low price to provide wider space, free parking and one-stop shopping options for its customers did not meet its objective.
Another Carrefour marketing criteria was to offer fresh products at very low prices and with high-value additions and an array of choices. After entering the market, the company followed its basic strategy of purchasing directly from the producers to keep buying costs low. However, the concept of "Everyday Low Prices" was not feasible in Japan as the customers were accustomed to frequent shopping and buying goods in smaller quantities to because of space restraints at home. Also, the Japanese were also very quality and fashion conscious and low pricing products did not convey that message.
When Carrefour entered the Japanese market, they were wholly-owned.
Carrefour's strategic problem was that they did not fully take into account a few important realities like the Japanese consumer behavior, the changing fashion trends in Japan, not having a Japanese partner, and the loss of trust in the company and its brands.
The case study ‘Canada Timber: Negotiating with the Japanese’ considers the intercultural challenges in negotiations between Canadian and Japanese teams. This essay explores the differences in culture between the Japanese and Canadian teams and discusses the impacts of these differences on the success of the business venture and on business in general.
But within one year (2003), the success of the strategy became suspect. One primary reason was the basic strategy followed by the companies. While Seiyu, focused on small grocery based stores in the centre of a locality, Wal-Mart, following it American strategy was more intent of creation of large scale operations, with huge outlets, usually in the suburban areas.
With the created principles and boundaries, members of the society are accorded the opportunity to advance as active members within the development of the established attributes. The vital members of the society are the most considered when the resources established are considered to be effective in creating opportunities.
In the development of resources considered effective for creating such opportunities, the most vital members of the society (that is, children and youth) are given special consideration. Children are active societal members that will have a great effect on future development.
The post war years allowed Japan to concentrate on economic development. With nearly no defense expenditure, Japan was able to devote nearly one third of its GNP to investments during 1953-63. The government policies of investment in education, industry and research and development started bearing fruit and the average annual growth rate during 1960s remained around 11% per annum.
The purpose of this report was to comprehend the reasons for the failure of EBay to set its base in Japan. This report has considered a case study titled “EBay in Japan : strategic and cultural missteps” by Indu Perepu and Sachin Govind in 2008, and a close examination has revealed that EBay had failed to take into cognizance the likes and dislikes of the Japanese customer, and had tried to treat them in par with their American counterparts.
All of these factors have contributed to the success of Louis Vuitton in the Japanese market. The reason for this is that the Japanese consumers are already used to spending on luxury goods so there is no need
As a result of research, it was suggested that Carrefour has exited Russian market not because of an objective to make short-term financial plan, but because of the failed entry strategy through the acquisition of the strategic partner, fierce competition in retail industry and lack of political support/protection.
One of the major reason for the failure is that the company did not consider the culture of the women, who are the main user of the product, when initiating the program. It is said that the product provided a washing area that provided
2 pages (500 words)Case Study
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