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Introduction

Wal-Mart is the largest retailer in the world.


The first store was opened in 1962 by Sam
Walton.
Wal-Mart has well over 3,000 stores
worldwide.
emphasis on customer satisfaction and always
low prices
Problems
Adapting to local taste
Wal-Mart revised its merchandising in Brazil
and Argentina
Competition from Carrefour
No control of distribution system
Logistic issues
Late in adapting credit culture



Losses forecast
Wal-Mart to lose $20 million to $30 million in Brazil
few shoppers are in the store during peak hours one
Sunday
Little difference between the goods at Wal-Mart and
those at near by Carrefour
Wal-Mart stocks 58000 items compared to Carrefour
which stocks 22000 items
Wal-Marts troubles in South America stem partly
from its own mistakes
Some goods are useless in San Paulo
Ex) Live trout, American footballs, Cordless tools
stock-handling equipment that didnt work with
standardized local pallets
computerized bookkeeping system that failed to
take into account Brazils wildly complicated tax
system

Analysis
Q1
Investment in diversified markets to avoid risk
Decrease competition
Increase revenue
Increase customer base
Take advantage of low cost countries



Q2
Allows purchase from low cost countries
Creates optimal logistic networks
Quick deliveries to customer



Q3
Helps in demand forecasting from warehouse
to suppliers
Helps in inventory management


Q4
Challenges to be face in north America due to
US recession
Higher operating cost due to increase in oil
prices
Wal-Mart could invest in other countries like
Europe, Africa, Asia etc

Q5
Risk faced
Currency fluctuations
Cultural barrier
Government regulations
Suppliers performance
Human resource
Customer expectations