as expected? Why until today, 20 years later, Walmart Brazilis a loss making operation? 1) It opted for entering with two different models Sam`s and Supercenter adding complexity and dispersing resources (anddemanding a more costly structure);2) Standardization-Centralization with low or noflexibility (lack of adaptability reflected in the operation, commercial policyand controls);3) Pricing model (Every Day Low Price) that works well inUSA given the representation of the operation there but that did not work in asmaller operation. In addition to that is a pricing model that punishesmargin!4) Acquisitions in distant regions Bompreco in theNortheast (2004) e Sonae in the South (2005) adding more complexity to thebusiness. Interesting was the fact that both companies were sold to WM byforeign retailers exiting the Brazilian market;5) Delay in integrating systems and brands.TheBrazilian management struggles with a few dilemmas, some dogmatic, that shouldbe addressed urgently with the aim of making the business sustainable. Thesedilemmas are: (a) Invest on Sams in detriment of Supercenter?; (b) Shut downthe Maxxis operation?; (c) Rationalize the Supercenters (size and number)?;(d) Invest in a smaller food format such as the Fresh? The problem,however, is that maybe there will be no time or patience from the part of theHQ to wait for the answers. Walmart is facing problems in its larger market,the US, and is taking actions that involve operating improvements (salaryincreases, hiring and training); further investment on the EDLP strategy thatwill lead to reduce margins and-or increase pressure over the relationship withsuppliers and investing in ecommerce. Besides that the CEO declared to becommitted to the two major markets for Walmart: US and China. He also declaredthat management is open for revision of the portfolio. And Walmart alreadydivested from non-performing operations in important markets such as Germany.The questionthen is if Walmart will continue to be operating in Brazil 20 (twenty) yearsfrom now or if these first 20 years were enough!?rbatistajr@2bpartnersconsulting.com| Advisory Board | Interim Management....Lembro-me vivamente quando anunciou-se que o Walmart iriaingressar no Brasil. Neste ano de 1995 o Carrefour, meu entao empregador,comemorava 20 gloriosos anos de Brasil. E o Walmart nao viria so estando muito(bem) acompanhados pela Lojas Americanas, de Jorge Paulo Lemann, socios com 40%do capital do Walmart Brasil (participacao vendida em 1997 com uma perda de R$9 milhoes). A mensagem era clara e publica: o Walmart iria conquistar o Brasilpassando por cima da concorrencia como um rolo compressor!Nesta epoca eu trabalhava na administracao do CarrefourBrasil. E a administracao do Carrefour Brasil reagiu de maneira correta a esseanuncio preparando-se para receber a maior rede varejista do planeta.Decidiu-se por um ataque ao inves de simplesmente defender-se. A expansao doconcorrente foi mapeada e as lojas Carrefour localizadas na zona de influenciada nova concorrencia foram reforcadas em termos de equipe, de mercadoria(sortimento e estoque) e de campanhas promocionais (preco e comunicacao).Adicionalmente, decidiu-se por adquirir um terreno ao lado de onde seconstruiria o primeiro hipermercado do WM - em Osasco - e ali construir umaloja. Para essa loja deslocou-se uma equipe experiente liderada por um dosmelhores diretores de loja da rede e definiu-se que essa loja nao teria porpreocupacao ganhar dinheiro. O objetivo dessa equipe era