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Why Wal-Mart Hasn't Conquered Brazil (second VER)
Associated link : http://www.businessweek.com/articles/2014-05-08/why-wal-mart-hasnt-conquered-brazil
SUMMARY
In latin America, Wal-Mart has been struggling since it started its business about 20years ago. As people know, this is not Wal-Mart's first failure. Due to fierce competition and disappointing results, it suffered hard times in South Korea and Fermany. In China, the company is under attack that fox DNA was found in what it sold as donkey meat. The situation is now getting more painful than before.
Seeking to fix the problems and flourish in South-America, this beleaguered company has started communicate with its customers. However, experts point out that Latin America is a big market and that it should fix its inner logistics problems in order to not lose its share in the continent. They suggest several ways to improve the sales. Executives at Walmart agree that communication with shoppers is not the fundamental way to promote Wal-Mart's interest. They say Wal-Mart in Brazil has failed to understand the local customers'traits. Where Wal-Mart is going with the Brazilian market can be seen from the customers'level of shopping satisfaction. Brazilian shoppers are generally cherry-pickers who are only interested in low price. To them, the convenience of one-shop shopping, which is Wal-Mart's strengh, is not that important.
Moreover, sticking with its everyday low price strategy is in fact hurting the company because big hyperinflation occurred in the 1980's has long gone.
24. Juli 2014 04:47
효진김
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