The Wal-Mart effect

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Japans economy one of the poorest among the developed nations. Macro-economic factors like the low rate of growth and an aging population that made Japan's retail market less than attractive. Store leaders experienced a flat growth for the last 5 years. They could do sales in billions but margins remain low as supply chain expenses creep upward.

 Due to this they ended in high debt resulting in high departmental prices.

As soon as it entered Japan, Wal-Mart brought in its best practices in retailing like Every Day Low Prices (EDLP). They pointed out that Japanese consumers preferred conveniently located stores within the city and were not visibly price-conscious. They added that foreign retailers had trouble with procurements due to the multi layered network of suppliers and retailers in the Japanese retail sector.

 Field was well suited for Wal-mart to expand further.

Wal-Marts operations in many countries are expanding through acquisitions.

The Japanese unit of Wal-Mart Stores, the worlds largest retailer, said that it would actively seek opportunities for mergers and acquisitions as a way to grow. In Japan, Wal-Mart runs the Seiyu supermarket chain, which has about 370 stores.

 Wal-Mart able to construct supplier agreements in Japan as in US then it lead to competitive advantage in low pricing. The growing of 100 yen stores equivalent to dollar stores in US are popping to compete with Wal-Mart along its breath and depth. Seibu and Sogo company merged to form a Millennium Retailing Inc. a largest in Japan. Due to this wal-mart will have a least impact.

Wal-Mart Corporate strategy

 Dominance in the Retail Market Expansion in the U.S. and International Markets

Creation of Positive Brand and Company Recognition Branch Out into New Sectors of Retail

 Wal-Mart's CS also involves selling high quality and brand name products at the lowest price. In order to keep low prices, the company reduces costs by the use of advanced electronic technology and warehousing. It also negotiates deals for merchandise directly from manufacturers thereby eliminating the middlemen.

Wal-Mart HR practices

 Wal-Mart emphasizes how it listens to its workforce so that each employee is able to suggest improvements to company policy and practice.

At Wal-Mart, store employees are called "associates and they are given training programs.
In addition, in order to promote esprit de corps, the company publishes "Wal-Mart World," an internal magazine for its associates. The company offers generous financial rewards for employees by means of profit-sharing plans such as stock-purchase options .

 The bulk of Wal-Mart's employee base work at stores and are part time workers who are paid the local minimum wage. Such employees are not entitled to any benefits, as it takes a part-time employee over five years to become eligible for compensation packages. There is a high turnover rate among these employees, which means most do not reach the requisite level of seniority. In many cases the local minimum wage is far below the poverty line.

Wal-Marts weakness
Extensive labor relation's problems are common at Wal-Mart. Generally, the company is opposed to Unionized labor Wage issues, shift scheduling, and workplace rights abuses are cited by labor groups. This seems to go against its founding principles of respect for employees. The company is also in frequent legal trouble with regulators and union groups in the courts.