The Success Story of Wal-Mart in Mexico


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR264 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

International Business | Globalization Business
Case Length : 14 Pages
Period : 1991 - 2007
Pub Date : 2007
Teaching Note : Not Available
Organization : Wal-Mart
Industry : Retail
Countries : Mexico, USA

Abstract:

This case discusses the success story of Wal-Mart, the world's largest retailer, in Mexico. Wal-Mart started its international operations in 1991 with its entry into Mexico. The company entered in Mexico through a joint venture with Grupo Cifra SA de CV (Cifra), a leading Mexican retailer. Wal-Mart later consolidated its position in Mexico by acquiring a major stake in Cifra. Many analysts felt that Cifra gave Wal-Mart a good platform to quickly establish its operations in Mexico. Moreover Wal-Mart's low-price strategy suited the aspirations of the local Mexican population, a large majority of whom were in favor of low priced products. Wal-Mart was seen as a supplier of quality food, groceries and other supplies at affordable prices.

Wal-Mart also received permission from the Mexican government to set up in-store bank branches. Many expected that Wal-Mart would bring a similar kind of competition in the financial services sector and make financial products more affordable to the Mexican people. The case discusses the factors that contributed to Wal-Mart's success in Mexico and also the challenges the retailer had to face in Mexico.

Issues:

» Understand the factors that contributed to Wal-Mart's success in Mexico

» Understand the issues and challenges faced by a large retail giant while expanding its operations to a developing country

Contents:

  Page No.
Introduction 1
Background Note 2
A Successful Entry 4
Low-Prices for the Customer 4
Walmex into Banking 6
Positive Image Helped 7
Outlook 8
Exhibits 9

Keywords:

Wal-Mart de Mexico SAB de CV, Grupo Cifra SA de CV, Mexico Retail Sector, International Business, Expansion Strategy, Wal-Mart Stores Inc, Retail Giant, Low price strategy, banking sector, Trader protests, In-store bank branch, Financial Services, Organized Retail, Pyramids of the Sun and the Moon, Commercial Mexicana, , Soriana, , Gigante

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