The Success Story of Wal-Mart in Mexico

Analysts felt that Walmex's retail operations certainly helped make the regular household items more affordable for Mexicans. During its initial years, Walmex published price comparisons showing how much cheaper its prices were compared to other retailers. This forced other retailers to improve their services and bring down prices too. This competitive environment fostered by Walmex ultimately benefited the Mexican customers. When Mexico experienced an economic setback in 1994, other foreign retailers like Sears Roebuck & Co. and Kmart sold out their stakes and quit the country, but Wal-Mart stayed on.

Walmex established itself as a company that was largely unbeatable on the price front. This widely held perception in Mexico helped it grow as the Mexican market was predominantly price conscious. It was seen both by the people and the government of Mexico as a company that catered to the large section of people with low incomes. On the same lines, Walmex successfully diversified into selling drugs and into banking. Walmex also stepped up competitiveness based on both price and quality, forcing the local retailers such as Commercial Mexicana, Soriana, and Gigante to gear up their efficiency...