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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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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"Brazil is a highly strategic country for Wal-Mart and we are going to continue growing in the country."1
- Héctor Núñez, President and CEO of Wal-Mart Brazil in 2008.
"Wal-Mart began its operation in Brazil in an absolutely fantastic way. The five stores were opened in a few months and, through a very aggressive pricing strategy, attracted thousands of enthusiastic consumers ready to empty the shelves."2
- Masaaki Kotabe, University of Texas, in 2001.
Introduction
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In August 2008, Wal-Mart Brazil, a part of the international
operations of the US-based Wal-Mart Stores Inc. (Wal-Mart), announced that it
planned to invest US$ 1 billion in its Brazilian operations. The investment was
to give a boost to the expansion plans of Wal-Mart, the world's largest
retailer, in the year 2009 in the country.
According to a statement released by the company, this would be the largest
investment that Wal-Mart had ever made in Brazil and would aid in opening about
80 to 90 stores. Analysts were of the view that with the slowdown of sales in
the US market, Wal-Mart was looking at markets like Brazil and China to achieve
growth.
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Wal-Mart's Foray in Brazil
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