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On Mar. 14th, when Wal-Mart Stores Inc. announced its first foray into Japan, the Bentonville (Ark.) retailing giant placed a big bet that it could succeed where countless other foreign companies have failed. In the past five years, a number of famous Western brands have been forced to close up shop after failing to catch on in Japan, one of the world’s largest--but most variable--consumer markets.
May Wal-Mart make a go of it where others have stumbled One good sign is that the mass marketer is not rushing in blindly. It has taken an initial 6.1% stake in ailing food-and-clothing chain Seiyu Ltd. , which it can raise to a controlling 33.4% by year end and to 66.7% by 2007. That gives Wal-Mart time to revise its strategy or run for the exits.
The question is whether Wal-Mart can apply the lessons it has learned. in other parts of Asia to Japan. This, after all, is a nation of notoriously finicky consumers--who have become even more so s
A. Seiyu will be incorporated into Wal-Mart in the foreseeable future.
B. Wal-Mart's has no alternative but to choose Seiyu as its partner.
C. Seiyu depends in large measure on Wal-Mart for surging profits.
D. Wal-Mart's cooperation with Seiyu is still to be re examined.
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