On Mar. 14, 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 yearend 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 since Japan slipped into a decade-long slump. How will Wal-Mart bring to bear its legendary cost-cutting savvy in a market already affected by falling prices? Analysts are understandably skeptical. 'It is uncertain whether Wal-Mart's business models will be effective in Japan,' Standard Poor's said in a Mar.18 report. Much depends on whether Seiyu turns out to be a good partner. The 39-year-old retailer is a member of the reputed Seibu Saison retail group that fell on hard times in the early '90s. It also has deep ties to trading house Sumitomo Corp. which will take a 15% stake in the venture with Wal-Mart. Perhaps the best thing that can be said of Seiyu's 400-odd stores is that they're not as deeply troubled as other local retailers. Still, there's a gaping chasm between the two corporate cultures. 'We've never been known for cheap everyday pricing,' says a Seiyu spokesman. Another potential problem is Sumitomo, which may not want to lean on suppliers to the extent that Wal-Mart routinely does. The clock is ticking. Wal-Mart executives say they need several months to 'study' the deal with Seiyu before acting on it, but in the meantime a new wave of hyper-competitive Japanese and foreign rivals are carving up the market. If Wal-Mart succeeds, it will reduce its reliance on its home market even further and—who knows?—it may even revolutionize Japanese retailing in the same way it has in the U.S. We can learn from the beginning of the text that Wal-Mart Stores Inc. will