Monday, April 23, 2007
WHY WAL-MART SHOULD NOT LAUNCH RETAIL VENTURE IN ARGENTINA
A new study conducted by a group of professionals on Fuqua School of Business has examined the impact of Wal-Mart entry in Argentina. Despite the astonishing business performance of Wal-Mart and high atractiveness of Argentine market, it seems that company undermined specific risks of the project such as limited leverage with suppliers. After going through NPV comparision, the study did not recommended Wal-Mart to enter Argentina. In 1995, the company entered the market without a joint venture partner, the competitive reaction was below the level of estimated Wal Mart's expectation and the company was not successful in Argentina.