|Wal-Mart Hopes It Won't Be Lost in Translation|
|Key Words||Global strategy, culture|
As a strategy for getting into the Japanese retail market, Wal-Mart bought a 38% stake in Japan's fourth largest retailer, Seiyu. It believes that by working through a local partner, Wal-Mart can better navigate Japan's network of suppliers, which has frustrated other foreign investors. Seiyu is a chain with falling sales and a debt-to-capital ratio that is more than twice the industry average in Japan. Wal-Mart believes it can cut costs and bolster profitability, and its "everyday low prices" may be a hit with Japan's increasingly bargain-conscious consumers.
|Source||"Wal-Mart Hopes It Won't Be Lost in Translation," The New York Times December 14, 2003.|
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