Abstract
This analysis looks at the role of Wal-Mart in Brazil by using glocalisation theory. Glocalisation refers to the strategies and practices adopted by transnational corporations to cater to local cultures and customs. In the case of Wal-Mart in Brazil, it unsuccessfully attempted to impose the US strategy of management practices, employee standards, low wages, EDLP (every-day-low pricing) for buyers, fierce pressure on suppliers, harsh anti-union policies and aggressive expansionism tendencies. In this, Wal-Mart was met with heavy resistance because it failed to glocalise. However, Wal-Mart changed tack or ‘compromised’ by following glocalisation principles and made deep inroads in the Brazilian market. This analysis is important for two reasons. First because it analyses the functioning of a giant corporation that ventured into unchartered territory from a theoretical perspective; an endeavour that has few scholars have hitherto undertaken. Second, in recent years, there has been scant consideration of the Brazilian market and its role in the global retailing process.
Highlights
This article analyses the role of Wal-Mart in Brazil, an emerging market, by using glocalisation theory
Glocalisation refers to the strategies and practices adopted by transnational corporations to cater to local cultures and customs
This analysis has demonstrated that the glocalisation of Wal-Mart in Brazil has redefined the nature of the retail structure within the region
Summary
This article analyses the role of Wal-Mart in Brazil, an emerging market, by using glocalisation theory. In the case of Wal-Mart, it was met with heavy resistance when it first entered the Brazilian market in 1995 The reason for this was it failed to glocalise and unsuccessfully imposed the management practices adopted in the US namely low wages, EDLP (every-day-low pricing) for buyers, fierce pressure on suppliers, harsh anti-union policies and aggressive expansionism tendencies. This lays the foundation for the centerpiece of this analysis—how Wal-Mart became successful—thanks to glocalisation. These glocalisation competencies are described through four key themes: (a) glocalisation practices: adapted brands and products, (b) glocalisation practices: adapted store lay-outs, (c) glocalisation practices: management and work procedures and (d) glocalisation practices: logistics and operational procedures. This analysis ends with a discussion section that offers suggestions for future research
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