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Since real estate is very expensive in Japan, people live in very small apartments and they are not used to doing big shopping, because there is not much space to store things. The majority of small-sized retail stores are run as family businesses, and there are preferential tax treatments granted to these retail stores. In addition, there are regulations placed on large-scale retail stores.
Japan’s current distribution system is a huge barrier to Wal-Mart’s traditional way of doing business. Wal-Mart’s direct-supplier system could not be more different in its design, its business philosophy and its operations from Japan’s multi-layered system...
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