Competition within Japan is also fierce. Many larger retailers have begun studying Walmart’s efficiency objectives and readily implemented and incorporated new policies and procedures within their own stores to gain a competitive edge against the U.S. based retailer. Aeon sent 368 employees into Japanese Walmart’s for the purpose of research I attempts to compete.
Walmart is facing a weakened economy, which at the moment is a problem, however it could have future benefits with suppliers. Due to the weak economy, suppliers are in desperate need of more sales, and therefore are starting to “break rank” and sell to retailers that they don’t normally have ties to.
Japanese customers are also notoriously “finicky” shoppers which poses another force, however shoppers have noted that prices are lower in Walmart than their usually shopping retailers, despite local retailer’s efforts to price comparatively to Walmart. Customers also pay attention to where their products are made in an effort to strengthen the economy. Walmart has had to advertise “Made in Japan” products in an effort to increase customer traffic and sales.
There are a wide range of forces that effect the general environment as well. Mangers are fighting a