Wal-Mart in 2005: Managing Globalization

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Case Details:

Case Code : BSTA137
Case Length : 18 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : US
Industry : -

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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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Global Expansion

For Wal-Mart's founder, Sam Walton, going global had not been a top priority. When Walton traveled overseas, he sometimes articulated the need to serve international customers. He realized that by providing goods at low prices, Wal-Mart could raise the standard of living of people around the world just as it had done in the US...


In 1998, Wal-Mart acquired a controlling interest in Mexico's largest retailer, Cifra, which operated stores throughout the country, ranging from the largest chain of sit -down restaurants to a soft lines (apparel, home furnishings, fabric) department store...


Wal-Mart Argentina had started its operations in August 1995, with the opening of a SAM'S CLUB in Avellaneda, in the greater Buenos Aires area. Like in Mexico, there were start up problems. Wal-Mart experienced heavy crowds in Buenos Aires...


Wal-Mart began operations in Brazil in May 1995, when a SAM'S CLUB opened in São Caetano do Sul, metropolitan area of São Paulo. The global retailer, Carrefour, which had opened hypermarkets in Brazil in 1975, proved to be a stiff competitor...


In 1994, Wal-Mart purchased all 122 Canadian Woolco discount stores. This operation too did not get off to the right start. Indeed, for the first three years (1995-97) Wal-Mart Canada showed major losses. But things started improving subsequently...


Wal-Mart had entered Indonesia, attracted by the potential of the world's fourth most populous country. The retailer faced numerous challenges in a country where foreign retailers operated under tight restrictions...

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