New Trends in Globalisation: An Examination of the Brazilian Case

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.