The entry of Wal‐Mart in Brazil and the competitive responses of multinational and domestic firms

Investigates the entry of Wal‐Mart in Brazil, and subsequent moves of established retailers and new entrants with data taken from secondary sources and interviews with executives. First, internationalization of Wal‐Mart and its entry are discussed, which caused an impact on Brazilian retailing by accelerating the concentration, automation and modernization of the industry. Competitive reactions were classified in four categories: neutralizing competitors actions, establishing competitive advantage, redefining markets, and changing ownership. It is argued that Wal‐Mart’s experience in Brazil could be an interesting source of learning for foreign retailers desirous of entering the Brazilian market as well as for local companies that need to remain competitive to survive.