Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0001

Year : 2003

Industry : Retailing

Region : Japan

Teaching Note:Available

Structured Assignment :Available

Abstract: In 1991, Wal-Mart, US No.1 retailer since 1990, forayed into the international market for the first time by entering Mexico. By 1999, besides US, Wal-Mart had its presence in nine countries.

Since 2000, Wal-Mart started witnessing significant growth in its international sales gainst flattened domestic sales. Being fed on double-digit sales and profit gains, Wal-Mart decided to expand rapidly into international markets to avoid concentrating only on its home market.

Japan, the second largest consumer market in the world after US, was its next destination. On March 14th 2002, when Wal-Mart announced its decision to enter Japan, the country's economy was mired in recession with spiraling deflation, shrinking consumer spending and cutthroat competition.