Nobody downloaded yet

Strengths and weaknesses of Wal-Mart's entry strategy into Mexico - Coursework Example

Comments (0) Cite this document
Summary
International Business 1. Evaluate the strengths and weaknesses of Wal-Mart’s entry strategy into Mexico. When Wal-Mart entered Mexico, there were a number of positive as well as negative points which were encountered by this global retail chain. These embody the essential strengths and weaknesses that Wal-Mart had when it decided to make its mark within the North American neighbor of the United States…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.8% of users find it useful
Strengths and weaknesses of Wal-Marts entry strategy into Mexico
Read TextPreview

Extract of sample "Strengths and weaknesses of Wal-Mart's entry strategy into Mexico"

Download file to see previous pages This is the reason why Wal-Mart decided to move south of the United States to Mexico. When one understands how this move came about, the strengths and weaknesses are easily distinguished. The strengths that can be accounted here included the already known name of Wal-Mart which spoke volumes about the kind of trust and confidence that the American consumers had in this retail giant. Also the everyday low pricing mechanism, and the highly efficient operations with state of the art logistics spoke at length of how Wal-Mart had made its name as a benchmark within the American retail spheres. This was the era of early 1990s when Wal-Mart had made a decision to explore the Mexican market. It teamed up with one of the already established retailers – Cifra, so that assistance could come in handy for both the chains. They decided to launch supercenters which would sell groceries and general merchandise. Wal-Mart had a win-win situation because it was entering into a completely new market and its operations within the United States had taught it that diverse customers can be served well, if there was a proper hierarchy within tasks and when operations were handled amicably. Thus the strengths for Wal-Mart depended a great deal on how it entered into the Mexican markets and created a name for itself all over again. Even though it was renowned in the United States, the slow down in the home country meant that Wal-Mart had to come up with something different and new. This could have only taken place with entrance within a new zone, yet being attached with the United States in one way or the other. Mexico is a neighboring nation of the United States and hence there were fewer risks involved for Wal-Mart because the region was more or less the same. With these strengths, came the weaknesses as well. Wal-Mart did not quite study the Mexican shopping habits and since it had already teamed up with Cifra, it knew little about the shopping trends revolving around the Mexicans. This was an important aspect related with Wal-Mart as it needed to find out more about them to begin with. The Mexicans preferred to buy fresh produce from local stores which included items like meat, tortillas and pan duice. This was an important understanding that must have been worked upon well by Wal-Mart before it decided to land within the Mexican market. Yet somehow there was a missing link present here. Since the Mexicans did not quite have large refrigerators at home, this meant that they bought on a regular basis. It actually asked them to come back again and purchase fresh produce. Also many Mexicans did not have cars which essentially meant that they could not shop much in one go. They would come back and buy small chunks though (Anand, 2009:171). This implied for fewer volumes of purchases on their part which defied the concept of large retail chains which were introduced by Wal-Mart in the first place. Hence the weaknesses were quite of a stringent nature as far as Wal-Mart was concerned. These needed to be worked upon at to produce sound results. What this fundamentally meant was the fact that Wal-Mart was losing ground within Mexico and since it was a new market, anything to this effect was not at all appreciated by the head quarters. Wal-Mart knew that its strengths and weaknesses ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Strengths and weaknesses of Wal-Mart's entry strategy into Mexico Coursework - 1”, n.d.)
Strengths and weaknesses of Wal-Mart's entry strategy into Mexico Coursework - 1. Retrieved from https://studentshare.org/business/1402575-international-business
(Strengths and Weaknesses of Wal-Mart'S Entry Strategy into Mexico Coursework - 1)
Strengths and Weaknesses of Wal-Mart'S Entry Strategy into Mexico Coursework - 1. https://studentshare.org/business/1402575-international-business.
“Strengths and Weaknesses of Wal-Mart'S Entry Strategy into Mexico Coursework - 1”, n.d. https://studentshare.org/business/1402575-international-business.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Strengths and weaknesses of Wal-Mart's entry strategy into Mexico

Strengths and weaknesses of Wal-Mart's entry strategy into Mexico

...Strengths and weaknesses of Wal-Mart’s entry strategy into Mexico Strengths Wal-Mart has plenty of strengths, which is apparent due to its far-fetched success. Wal-Mart is the principal employer in the United States and the corporation is among the few places left for persons to get a respectable job with no a university education. Wal-Mart, in addition, has the second biggest net sales in the globe. This implausible figure of sales is due appreciably to...
11 Pages(2750 words)Coursework

International Business Strategy: Wal-Mart

...retailers to gain market prominence. Thus, the business was using promotions, merchandising strategies, and associated strategic imperatives that worked in the United States rather than creating customised business models to better fit the social and psychological needs of the German markets. If Wal-Mart had, early in strategy development for new market entry, considered the complex psycho-social needs of German consumers, many synergies could have been created by negating acquisitions and attempting a more incremental market entry after, first, establishing a positive brand perception as the foundation of brand recognition in this...
14 Pages(3500 words)Essay

Wal-Mart

..., expenses, talent and services). They follow unique penetration pricing policy, they never tend to compete, break through operations management can handle the customers and the employees wisely within the store, great culture, they promote the key products very tactically and the inner talent of the management is distributed properly within the lower level of the organizations. There are some points are also there to support the positive aspects of the Wal-Mart and they are mentioned bellow. Remarkable business strategy of the Wal-Mart to support the argument: Wal-Mart has changed the seller’s market to the buyer’s...
3 Pages(750 words)Essay

Wal-Mart

... to identify. The payoff in investment could be achieved if unit level tracking becomes possible. Until then the benefit from RFID remains limited. Works Cited IDTechEx. RFID progress at Wal-Mart. 2005. Web 4 July 2011. Piasecki, Dave. RFID Update: The Basics, The Wal-Mart Mandate, EPC, Privacy Concerns, and More. 2011, Web 4 July 2011. http://www.inventoryops.com/RFIDupdate.htm Songini, Marc L. Wal-Mart details its RFID journey. Computer World. March 2, 2006, Web 4 July 2011. s/article/109132/Wal_Mart_details_its_RFID_journey>. Tutorial-Reports. WalMart: Expectations and Plans. 2005. Web 4 July 2008. . Tutorial-Reports. WalMart and RFID: Looking Ahead. 2005a. Web 4 July 2008. . Tutorial-Reports. RFID Tags: Advantages and Limitations. 2007. .... ? Wal-mart...
3 Pages(750 words)Essay

Wal-Mart Business Strategy Analysis

...was essentially very late and displayed weak public relations skills. Many burning issues like stocking cheap and low quality goods were covered up by the company. However come of the company’s strategies like having a ‘glocalised’ approach of thinking globally and acting locally in international markets was very effective in improving the brand image of the company in the international markets (Kocks, 2000, p.157). This also assumes significance as the traditional markets like USA are highly saturated with high levels of competition in the markets and the new markets like China hold immense potential for the organization in the wake of dwindling margins of the company in the present business...
7 Pages(1750 words)Essay

Wal-Mart

... Wal-Mart Wal-Mart's humble beginnings started out in the 1940's as a variety store franchise In Bentonville, Arkansas. Wal-Mart's founder, Sam Walton Ben Franklin stores were a chain of variety stores owned by Butler Brothers, a regional retailer. Among, included in the Butler Brothers franchises included variety stores such as the Ben Franklins and a chain of department stores known as the Federated Stores. (Wal-Mart) On October 31, 1969 Wal-Mart was established as a corporation under the name Wal-Mart Stores, Inc. Very soon after in 1970, this was followed by the opening of Wal-Mart's business headquarters in Bentonville, Arkansas and the opening Wal-Mart's very first distribution center. (Wal-Mart) Currently, Wal-Mart operates... ...
4 Pages(1000 words)Case Study

Wal-Marts Entry Strategy

...a number of severe challenges. Japanese consumers are different from the typical Wal-Mart shopper. They want local products, look for extremely fresh produce and fish, and are extremely detail oriented and require a lot of information regarding products. They would like name brands; purchase in small quantities. They buy only a little food that would last them a few days, and want items that are separately wrapped. Q2). Do you agree with Wal-Mart’s entry strategy? What are some of the inherent risk? Do you think that a faster market entry would be more effective? Answer 2. In order to avoid the mistakes made in...
5 Pages(1250 words)Assignment

Wal-mart

...Wal Mart Competitors’ home, supplier, and partner countries 2) and supplier bypass 3) Political, legal and regulatory climate Competitor Country features: Walmart’s business models centers around the everyday low price model. Its supply strategy in its home country was to build stores in remote locations where other stores were not available, thereby creating markets and adequate sales volumes to generate economies of scale from them. It is a discount store outlet, focused on marketing brand names for lower prices. Similar stores such as Woolco and Kmart were not as successful as WalMart, because the latter had some unique operating principles which worked to its benefit. After four decades of operation, Woolco outlets have... ...
2 Pages(500 words)Essay

Stakeholder analysis Wal-Mart in Mexico case

...Wal-Mart de Mexico Case Analysis of Stakeholders Wal-Mart de Mexico Case Analysis of Stakeholders The Wal-Mart de MexicoCase consists of a number of stakeholders owing to the varied impacts of the issue facing the company. This study aims at outlining the stakeholders in the case, for each of the stakeholder the stakes, Wal-Mart’s responsibilities to them, and attributes are provided, and the strategies and actions fit for undertaking by Wal-Mart for each one of them. The stakeholders will mainly be limited to those who...
5 Pages(1250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic Strengths and weaknesses of Wal-Mart's entry strategy into Mexico for FREE!

Contact Us