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Economic conditions facing Japanese companies continue to be severe due to the aftermath of the Great East Japan Earthquake and the economic crisis in Europe. The case of wholesale companies is no exception. Severe conditions facing small- and mediumsized wholesalers conducting business in the domestic market are not temporary, but will become worse in the future. One of the problems is the reduced significance of wholesale business due to the evolution of retailers, and another problem is a drop in demand as a result of the declining population. In this situation, in order to survive, small- and medium-sized wholesalers need to change the direction of their business and take different strategies. They should reexamine the value of their business to customers, identify their strengths, come up with a selected set of core activities from these processes, and promote the strengthening of existing business activities or the development of new business undertakings. Key points for the strengthening of existing business activities are narrowing down and clarifying targets, fortifying basic business functions in cooperation with other foreign and domestic companies, and shifting focus to services. Shifting focus to services is most important as it is an action for improvement in which small- and medium-sized firms can take advantage of their flexibility. Key points for the development of new business undertakings are utilization of the Internet and entry into downstream markets based on the firms?fown strengths. Survival and growth require a rigorous combination of these actions without deviation from core activities.