Case Analysis Wal Marts foray in Brazil


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Case Analysis Wal Marts foray in Brazil

Introduction

The operations of Wal-Mart in Brazil have raised a lot of concern in relation to the decreasing performance of the company. Despite of the high potential of the Brazilian retail market, Wal-Mart has not been able to demonstrate efficient performance over the last couple of years. It is worth noting that Brazil is ranked the 5th largest retail market across the globe and the second in terms of population across western hemisphere. The population which is at a high of 190 million also demonstrates the high potentiality of the Brazilian retail market. Another key aspect of great importance to the operations of Wal-Mart in Brazil is the rapid growth of the economy. This phenomenon puts the country at a very strategic position in terms of business activities. Nevertheless, Wal-Mart’s operations over the late 1990s and early 2000s have not been appealing. This is related to management problems and market orientation among other factors. Based on these challenges, the company has not been able to demonstrate admirable performance, thus raising concern on the future sustainability of the company’s performance. This paper will explore the future challenges for Wal-Mart in Brazil as well as the competitiveness of the Company with CBD and Carrefour.

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