Management Decision Case : Tests Serves Up Japanese Expansion Given the highly competitive nature of the Japanese retail food market and failure of global leaders Wall-Mart and Careful to successfully penetrate the Japanese market, do you believe Deco’s decision to open Tests Express is a good idea? Why or why not? Not a good idea. Why? Cultural differences between the I-J market and the Japanese market for groceries. Japanese doesn’t want change (even Walter and Careful failed).
So, it s difficult to penetrate into Japanese market Tests needs volume (to make profit) due to the operation cost. Japanese only wants their local product (since there is already 40000 convenience store in Japan) Quality & Standard. The reason of Walter n Careful failure was the quality since Japanese is willing to pay for higher-quality food that is convenient. Come with express first but no capability since their model works with bigger supermarket (risky) Japan, the world’s third-biggest grocery market remains a difficult country to make money from as International retailers
How would you describe the retail strategy for Tests Express as it expands in Japan? Unique mix of convenience store and supermarket featuring higher-quality fresh food, ready-made meals, and certain supermarket items found in its larger, traditional Tests Supermarket. Convenience store offering quality, ready-made food and limited supermarket items (not currently served by traditional Japanese convenience stores such as 7- eleven, Lawson, Circle-K Skunks, or the larger more traditional grocery stores such as Neon and Aide) Focuses on the delivery of fresh ready-made foods.
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