Case Study Of Carrrefour In Japan

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I. Introduction At the time of increasing globalization worldwide, going international is the ultimate choice for most companies that aiming to expand their business and market in the future. However, entering and sustaining a new market has always been the challenge for most companies that chose to do so. Among the essentials matters to be considered in going international, the understanding of the dynamics of international management (IM) issues and how to resolve it is of paramount to all corporations. This paper will provide an analysis of concepts and highlight on cultural theories and a case study of Carrefour in Japan to emphasize the importance of sufficient knowledge in IM dynamisms in general, and cross cultural management, in particular.…show more content…
Thus, there is a need to adjust at international level of marketing. Polycentric firms would see more differences among difference markets and a local adapted marketing mix will be applied. In geocentric firms, marketing is assumed to combine both poly- and ethno- centric approaches in marketing. Regiocentric firms will try to match both the homogeneity and the regional differences. Marketing is rather standardized for all countries in one region but adjusted accordingly to different regions. (Rozkwitalska 2007, pp. 284–285) III. Case Study: Carrefour failure in Japan Carrefour is a multinational retailer headquartered in Boulogne Billancourt, France . It is one of the largest hypermarket chains (4th in retail) in the world and the second most profitable retailer (after Wal-Mart) with stores all over Europe, America, Asia and Africa ever since the early 90s. However, despite their successful operation in numerous countries and continents, this giant retailer still couldn’t find a way to align with Japanese…show more content…
The company had completely ignored the fact that Japanese market is not as price sensitive as other Asian markets. Many people came to Carrefour mostly out of curiosity, expecting it to give a resemblance of French market with French products while on the contrary, the company were selling more Japanese products and lost all ability to distinct itself with highly competitive local supermarkets (Yamakawa, 2005, Choi & Mukoyama, 2009). There was the discordance between the image that Carrefour tried to portrait as high quality, luxurious and sophisticated products when it was following the EDLP model- ‘Everyday low price’, multi-store, convenience, retailing format. Moreover, Carrefour Japan didn’t make any adjustment regarding Japanese people as its shop signs were in English with intimidating guards present at the store; westernized design shelves and cart that were too high and heavy for average Japanese people; confusing the weight-then-price at checkout system for vegetables and fruits while the people are used to purchase pre-packed goods with known price tag and especially the non-diverse fish choice in seafood

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