Wal-Mart in Brazil

Wal-Mart in Brazil

I. Problem/ Issue

Wal-Mart was founded by Sam Walton in 1962, incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. Wal-Mart is the World’s largest retailer in the global market and is looking to expend their international sales and Market share. Presently Carrefour is the largest hypermarket chain in the world in terms of size and in Brazil so Wal-Mart must develop a strategy to beat their competition.

II. Situation Analysis Narrative

Wal-Mart is strategizing new ways to expand their international market shares in Brazil. Currently Carrefour is the clear leader of the market in Brazil with a total of 229 stores and a partnership with Lojas Americans since 1998. It appears that Wal-Mart is stagnant in global expansion with Carrefour and Tesco expanding into untouched territory (e.g. Asia, Europe, and Africa ) thus Private retailers are also increasing market shares by improving quality and offering lower prices.

Wal-Mart’s strengths include its marketing expertise, merger with the largest retail organization, reputation as an excellent retailer, distribution knowledge, its ability to offer exceptionally low prices, excellent customer service, rare out-of stock shortages and a focused strategy for human resources management and development.

Weakness for Wal-Mart include the following:

• Has not an impact on the Brazilian retail market especially in non-English speaking markets.

• Operating under separate brand names – no branding.

• Wal-Mart doesn’t have a strong retailer conscience product which prevents them from having a hold on the market.

• Locations of stores are out of the way and don’t generate return customers on a daily or weekly basis. Customers often shop one timer per month.

• Competitors have sought to place their branded stores near Wal-Mart locations which increases competition.

• The company is global, but has a presence in relatively few regions in Brazil and Worldwide.

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