Wal-Mart's Foray in Brazil
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Case Code: BSTR332 Case Length: 17 Pages Period: 1995-2008 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.300 Organization: Wal-Mart Stores Inc. Industry: Retail Countries: Brazil/US Themes: International Business, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Wal-Mart's International Operations
Wal-Mart began its international expansion in the early 1990s. The first Wal-Mart store outside the US was started in Mexico in 1991. The company entered the country through a 50-50 joint venture with Mexican retailer Cifra, which shared its operational expertise with Wal-Mart. It faced some initial challenges as the consumer behavior and culture in Mexico was quite different from that in the US...
Wal-Mart in Brazil
The idea of entering Brazil was first proposed to Wal-Mart in 1982 by a Brazilian retail company called Grupo Garantia, who wrote to the company expressing its desire to partner with Wal-Mart in developing retail stores in the country . However, Wal-Mart preferred not to take any decisions at that time as the economy in Brazil was very unstable around the late 1980s and the early 1990s...
Wal-Mart Brazil Revamps its Operations
After suffering an initial failure, Wal-Mart Brazil revised its plan and implemented a few strategies to bring its operations in the country back on track. The company also worked toward consolidating the distribution line and incorporating the Brazilian culture into its system as far as possible...
Facing Challenges Successfully
Wal-Mart faced many challenges in Brazil due to an unsteady economy in the late 1990s and the early 2000s. Besides, it also had to face some cultural differences as well as challenges in terms of management, logistics and distribution, and competition...
The Road Ahead
Some of Wal-Mart's strategies in the Brazilian market were so successful that it started using them in other markets. For instance, in Brazil, it introduced a fast-lane program to enable faster check-out for the customers...
Exhibits
Exhibit I: Wal-Mart's International Presence
Exhibit II: Carrefour in Brazil
Exhibit III: Various Formats and Brands under Wal-Mart Brazil
Exhibit IV: Brazil's Top Five Retailers in 2008
Exhibit V: A Note on the Brazilian Retail Environment
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