Wal-Mart's Foray in Brazil

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Case Details:

Case Code : BSTR332
Case Length : 17 Pages
Period : 1995-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Wal-Mart Stores Inc.
Industry : Retail
Countries : Brazil

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Wal-Mart was founded by Samuel Moore Walton (Sam Walton) who had started a career in retailing way back in 1940 and had worked with retailers like JC Penny Corporation Inc. and later managed one of the franchise stores of Ben Franklin in Newport. These experiences helped him understand the retail environment in the US...

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...

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