A giant retailer in Argentina: ‘Glocalization’ perspectives

Jonathan Matusitz

Abstract


This article examines how Wal-Mart became successful in Argentina by applying the tenets of ‘glocalization’ theory. ‘Glocalization’ refers to the strategies a multinational corporation employs abroad to cater to local idiosyncrasies. When Wal-Mart built its first stores in Argentina, it imposed its US-based blueprint of low-pricing tactics and shopping traditions that were rapidly rejected by most Argentinian consumers. After a few years of trial and error, Wal-Mart finally brought forth five major business and cultural changes that proved successful: (1) adaptation of store design, (2) adaptation of products to local tastes, (3) adaptation of shopping culture, (4) adaptation of employment practices and workplace culture and (5) acceptance of trade unions. 


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