The Success Story of Wal-Mart in Mexico
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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.
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Case Details: |
Price: |
Case Code |
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BSTR264 |
For delivery in electronic format: Rs. 300; For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra
ThemesInternational
Business | Globalization Business
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Case Length |
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14 Pages |
Period |
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1991 - 2007 |
Pub Date |
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2007 |
Teaching Note |
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Not Available |
Organization |
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Wal-Mart |
Industry |
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Retail |
Countries
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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.
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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:
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
The Success Story of Wal-Mart in Mexico
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