Carrefour's Exit from Japan - Essay Example

Carrefours Exit from Japan Strategic Problem: Carrefour’s strategic problem mainly stemmed from its trial and error approach since the start of itsoperation in Japan. This showed a lack of understanding of the market and, hence, wrong strategies that were adopted. Tactical Problem: Japan did not meet Carrefour’s criteria that are usually considered before the company enters a market. In addition, it did not seek a Japanese partnership that could have given guidance to a successful penetration of the market.

Issues: Low price strategy did not work well for Carrefour as the market identified and expected a French brand, one that is prestigious and expensive Direct trading, which is a strength for Carrefour, became problematic in Japan because many Japanese manufacturers refused direct trading with Carrefour. The whole quantity acquisition contract with farmers resulted in unevenness of quality in the produce offered. Store features such as tall displays, customers weighing goods themselves were unpopular.

Alternatives: Employment of Japanese personnel that helped in coping with different characteristics and practices in every region of the Japanese market. Introduction of the expected French goods that the market is looking for. Recommendations: Carrefour’s problem in Japan mainly stemmed from its lack of understanding of the market. This could have been addressed by a thorough study of the market better and/or a partnership with a Japanese firm.