...Brian Cash Wal-Mart Case Study International Business How has the implementation of NAFTA affected Wal-Mart’s success in Mexico? When NAFTA was implemented in Mexico, it was an almost immediate success for Wal-Mart. This was because they lowered and abolished the tariffs that Wal-Mart was required to pay prior to the implementation of NAFTA. With the lack of tariff fees, all of the Wal-Marts' in Mexico have been able to offer the “Every Day Low Prices” that we Americans are used to. The Mexican population has other retail options, but none offer the variety of products at the prices that Wal-Mart can offer them. Prior to NAFTA, Wal-Mart was having strong levels of success all over Mexico, but was taking a huge hit as it struggled to incorporate the import costs on the products it sold in the stores. In 1994, NAFTA was implemented in Mexico they were able to do a multitude of things. Firstly, they lowered tariffs from 10 to 3 percent on all American goods travelling from the United States into Mexico. (Daniels, Radebaugh, & Sullivan, 2013) At the same time they were also helping the government by encouraging them to improve its infrastructure. The improvements to subpar roads and the various routes delivery trucks utilized helped connect the logistical issues that plagued Wal-Mart and kept them from branching out into further enterprises within Mexico. The strategy worked and allowed Wal-Mart the ability to transport goods directly to the warehouse and...
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...1. How has the implementation of NAFTA affected Walmart’s success in Mexico? Walmart’s marketing campaign has been “everyday low prices”. This was not the case in Mexico prior to NAFTA. Walmart was paying higher tariffs to import American goods. Once NAFTA was implemented, Mexico became a free trade zone. This made it possible for Walmart to reduce its tariffs from 10% to 3% creating a level playing field with its competitors. With the signing of NAFTA, it also opened up the doors to foreign investment in Mexico. Walmart was also paying huge fees for goods to be shipped from Europe and Asia into Mexico. Once these companies knew that building manufacturing plants in Mexico they could keep the costs low by using Mexican labor, they facilitated it. This allowed Walmart to purchase these products without paying high import tariffs. “NAFTA resulted in better suppliers due to an increase in competition, competitiveness and efficiency among the companies in order to gain the trust of their clients. Better supplies also increased the variety of products available to consumer with wider price ranges, which allowed Walmart to offer customers better savings and thus increase their purchasing power. NAFTA also helped Mexico achieve greater economic growth at a lower rate of inflation, which also added to the purchasing power of consumers.”(Daniel & Radenbaugh, pg. 321) 2. How much of Walmart’s success is due to NAFTA, and how much is due...
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...Wal-Mart Goes South Case Analysis Introduction “Save money. Live better” is the slogan of the 1962 founded American multinational retailer corporation that runs chains of large discount department stores and warehouse stores around the world. Wal-Mart today is the world’s 18th largest public corporation according to Forbes Global 2011 list. In 1991 Wal-Mart opened its first stores in Mexico and the competition between the store and local supermarkets began. Wal-Mart being so large and worldwide gave the company an advantage in negotiating low prices with many suppliers. Nevertheless, other local supermarkets such as Comerci, Soriana, and Gigante, didn’t give up the market to Wal-Mart so easily. They took action and started to think about ways and methods in order to fight a retail war against Wal-Mart. How has the implementation of NAFTA affected Wal-Mart’s success in Mexico? The implementation of NAFTA had a huge affect on Wal-Mart’s success in Mexico because before they got involved Wal-Mart didn’t do so well down there because the company deviated greatly from its successful business model in the States. Before NAFTA the tariffs were more expensive and once NAFTA got involved they went from originally 10% down to 3%. The infrastructure was not as advanced and caused logistic problems for Wal-Mart which got resolved with the help of NAFTA. Additionally, the restrictions of foreign direct investments got eased as well which resulted in many foreign suppliers...
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...EL LABORATORIO PROFECO REPORTA Enjuagues bucales Ilustración Cynthia Márquez 44 Consumidor • Febrero 2009 Cuando la propia boca es una emergencia sanitaria, a nadie se le puede culpar más que a uno mismo. Para evitar la caries o la gingivitis, el procedimiento es tan sabido que parece una cantaleta: el primer paso es cepillar los dientes a diario después de cada comida, recurrir al hilo dental para eliminar los restos de comida escondidos entre los dientes... y el uso de enjuagues bucales. Sí, el uso de estos últimos no es superfluo, como muchos pueden creer. Pero no todas las marcas son igual de capaces de auxiliar en la salud bucodental. Febrero 2009 • Consumidor 45 L os enjuagues bucales ayudan a suprimir temporalmente el mal aliento, reducen las bacterias en la boca y la refrescan, dejando en ella un sabor agradable. Algunos contienen ingredientes activos para ayudar a proteger contra enfermedades orales como la caries o la gingivitis. La caries dental es una enfermedad común, aunque en los últimos años su frecuencia ha disminuido gracias a los programas de salud bucodental, a una mayor atención dental y a la utilización de algunos ingredientes activos en los dentífricos y en las aguas de consumo. La caries se caracteriza por la destrucción del esmalte dental y la dentina (tejido duro situado debajo del esmalte) ocasionado por bacterias (entre ellas el streptococcus mutans), que se desarrollan en la placa dental y producen un medio ácido que...
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...Competition with local supermarket companies The competition between Wal-Mart and local supermarkets has become stronger and more vicious. Wal-Mart is so large and worldwide, which grants an advantage in negotiating low prices with many suppliers. However, Local supermarkets such as Comerci, Soriana, and Gigante, do not seem to give up the market so easily. They have already taken several actions to fight Wal-Mart continuously. Unable to get low prices Wal-Mart can get from the suppliers, local supermarkets tried using “high and low” to attract more customers. It is a method of lowering prices of some products but not all products; they have also gone to the federal competition commission with complaints of Wal-Mart’s unfair pricing practices. Later on, Comerci – Wal-Mart’s main competitor, has formed a cooperation called Sinergia with two other struggling homegrown supermarket chains, which would allow them to negotiate better prices with suppliers. Currently, there has been notable success of Soriana, who is attempting to differentiate itself from Wal-Mart by providing products and atmosphere more appealing to middle (income) class consumers. Wal-Mart is also facing ethical and legal issues raised from their recent law suit because Wal-Mart had been paying its employees store coupons as a part of the salary, which forces the employees to shop at Wal-Mart. NAFTA’s Limitations The implementation of NAFTA has greatly reduced the costs of doing business. Wal-Mart...
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...Read the case study “Wal-Mart Goes South” below and respond to the following questions: 1. How much of Wal-Mart’s success is due to NAFTA, and how much is due to Wal-Mart’s inherent competitive strategy? 2. How has the implementation of NAFTA affected Wal-Mart’s success in Mexico? 3. Faced with going out of business, what steps did Comerci take to remain competitive? What other steps do you think Comerci should take to secure its future and further compete with Wal-Mart’s operations in Mexico? APA format is required for text citations and references. You are expected to support your answer with: (1) the textbook “International business environments and operations (twelfth edition), Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2009). New Jersey, NJ: Pearson Education, Inc.”, and (2) news articles, internet articles, and academic source. WAL-MART GOES SOUTH Comercial Mexicana S.A. (Comerci), one of Mexico’s largest retail chains, is faced with a serious dilemma. Since Wal-Mart’s aggressive entry into the Mexican retail market, Comerci has found it increasingly difficult to remain competitive. Wal-Mart’s strong operating presence and low prices since NAFTA’s lifting of tariffs have put pressure on Comerci, and now management must determine if Comerci’s recent participation with the purchasing consortium Sinergia will be sufficient to compete against Wal-Mart. What’s caused this intense competitive pressure on Comerci, and what is likely to be its...
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...|Nombre: |Matrícula: | |Carolina Valdez Rivas |2708920 | |Vanessa De Los Ríos Félix |2713331 | |Karla María Vega Lizárraga |2629078 | |Ana Lizeth Ramos Machado |2716475 | |Sheyla Abigail Páez Montoya |2711282 | |Nombre del curso: |Nombre del profesor: | |Administración de Cuentas Clave |Elma Lizeth Ocampo Villalobos | |Módulo: |Actividad: | |Modulo 1 |Actividad 5: Clasificar las cuentas clave elegidas en los Niveles| | |de Relación. | |Fecha: 06 de Septiembre de 2015 ...
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...MANAGING QUALITY 12/2010 Introduction TheStore is a large scale mass merchant of retail goods throughout the United States. The retail giant has had a storied career dating back to 1962 when it opened its doors for the first time in City, State. TheStore is now a subsidiary company of XYZ Holdings Corporation which purchased TheStore in 2005. XYZ Holdings is the parent company which has both XYZ and TheStore under its corporation banner. XYZ Holdings Corporation ranked 48th in the Fortune 500 rankings for 2010 and raked in just over $44 million dollars in revenue in 2009. XYZ Holdings Corporation operations are now based out of Another City, State with TheStore having its headquarters in Town, State. TheStore and XYZ Holdings Corporation are two closely knitted companies that operate with a close relation with one another, carrying many of the same products in both stores. They have shown positive growth in the form of revenue generated from doing business and have grown in market share. XYZ Holdings Corporation currently operates nearly 1,327 TheStore stores throughout the United States and U.S. territories, with varying sizes ranging from the biggest, Big TheStore and TheStore Super Centers to the traditional size, regular TheStore store. Store sizes range from 93,000 to 168,000 square feet. TheStore boasts some of the top retail brands with A, B, C, D and E. TheStore is a one stop shop for all of your household needs. The stores house everything from air fresheners...
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...Wal-Mart entered the Mexican market in 1991 and hasn’t looked back. Using a form of globalization called glocalization, Wal-Mart achieved tremendous success in Mexico. The perception of Wal-Mart globally is less than stellar because of what has been coined as Wal-Martization. Some have also called Wal-Mart a ‘Cathedral of Consumption.’ But Wal-Mart learned the hard way how to become successful in the global marketplace. It didn’t just happen overnight. By utilizing five glocalization strategies, Wal-Mart became the largest private employer in Mexico. Wal-Martization is a philosophy where faster, better and cheaper are words used to describe their process. More words that define Wal-Martization are bigger, global and standardized. While Wal-Mart is known for its everyday low pricing, it also has a few negative connotations associated with it. They include its anti-union poilicies, downward pressure on manufacturers, low salaries for employees and its merciless expansion practices. When Wal-Mart comes to town local shop owners panic because Wal-Mart can reduce prices as much as it wants and the local businesses can’t compete with that. Sam Walton opened the first Wal-Mart in Bentonville, Arkansas, in 1962. By 1979 Wal-Mart was making $1 billion in annual sales. By 1993 it was making $1 billion in weekly sales. And by 2001, Wal-Mart began making $1 billion in sales each day. According to its official website, corporate.walmart.com, Wal-Mart is currently in 27 countries...
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...(Reporte) Sectores económicos de Tabasco. Según las páginas analizadas en tabasco la actividad económica que más aporta al producto interno bruto del estado es el sector de servicios, seguido por el comercio, entre ambos generan más del 60% del PIB estatal. Otra actividad importante es la extracción de petróleo, pues Tabasco es el segundo productor nacional de petróleo crudo, después de Campeche. El estado también captó 9500 millones de pesos (12.26% del total) por concepto de extracción de petróleo y otras actividades mineras. Sectores primarios. Agricultura La actividad agrícola en la entidad se desarrolla principalmente bajo condiciones de temporal, ya que a diferencia de otras regiones del país, en el estado de Tabasco se presentan abundantes precipitaciones, lo que a su vez representa un problema para la agricultura, ya que no se cuenta con suficiente infraestructura adecuada para drenar el exceso de agua. Con base en la superficie sembrada, los cultivos perennes de mayor importancia son: cacao, coco, caña de azúcar y cítricos y además los cultivos cíclicos más importantes son: maíz, arroz, sorgo y frijol. Ganadería El estado de Tabasco cuenta con una gran extensión de pastos naturales, lo que beneficia a la explotación de ganado bovino mediante el sistema de libre pastoreo o ganadería extensiva. Por su rusticidad y tolerancia a temperaturas elevadas, el ganado de raza cebú es el que mejor se adapta al clima tropical de la entidad, su explotación se dirige principalmente...
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...The following are barriers to entry the Fruit Juice Industry in Nigeria: As consumer goods, competitive advantage could only be gained with scale economies in research, Marketing, production and Marketing, hence it required huge capital outlay for new entrants. Brand identity and products differentiation forces entrants to spend heavily on campaigns to overcome customer loyalty. The leaders in the sector, namely 5 Alive,Chi limited and Fumman spent between 20-25% of gross income running running into millions of Naira in advertising every year to project the their brands. Due to the restriction of the Federal Government on import of Concentrates in 2013, the capital requirement for new entrants sky-rocked due to investment required in agro-allied industries for supply of raw materials. The learning curve period required to remain competitive could allow the competition readjust and kill the new entrants in their formative stage. Also, lack of adequate anti-trust law allows the big players to crush any start-up company. The effective distribution networks of the big players which also supply other products like Bottled Water, Soft Drink etc make the entry of new player difficult and uncompetitive, as a result most of the start-up firms quickly went underground. The bargaining power of suppliers The big juice companies in Nigeria have bargaining power over their suppliers, because they demand tons of product and these allow them to pay lower prices and have volume discounts...
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...Justin Mahoney February 7, 2012 Marcella Gamallo Essay #1 Monster Corporation Forbes Magazine, the leading source of reliable business news and financial information develops an annual list of the world’s billionaires and lo and behold who has four members of its’ family in the top twenty of the richest people on the planet? The wealthiest family on earth, the Walton’s, whom control the world’s largest revenue public corporation, Wal-Mart (The World’s Billionaires). The American multinational retail corporation manages chains of large discount department stores. The corporation is also the world’s largest private employer with approximately 2.2 million employees; the company’s employee roll exceeds the population of over 50 countries in the world including Qatar, Trinidad and Tobago, Iceland and Suriname. Walmart is essentially the largest retailer in the entire world. The company, which is controlled by the Walton family who own a 48% stake, have been bashed in the media time and time again for “failing America.” Applause must be given to the Mega Corporation, they came from being just one department store to a multi-billion dollar corporation however, the treatment of Wal-Mart’s employees and the greediness of Wal-Mart’s owners combine to make it a monster corporation with negative effects on both individuals and competing companies. To be reasonable, we must touch on the benevolence of Wal-Mart because to be...
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...Plan estratégico. Análisis de la industria. Poder de clientes. La American Marketing Asociation (A.M.A.), define al mercado objetivo (Target Market) o mercado meta, como "el segmento particular de una población total en el que el detallista enfoca su pericia de comercialización para satisfacer ese submercado, con la finalidad de lograr una determinada utilidad" El mercado meta, que le corresponde a la empresa Carrot Cake abastecer es el siguiente Geográficas * País: México * Ciudad: Chihuahua * Municipio: Chihuahua Demográficas * Edad: 14 a los 40 años aproximadamente pero no estrictamente * Sexo: masculino y femenino * Ingresos: más de 3 hasta cinco salarios mínimos * Ocupación: Estudiantes y amas de casa, pero no estrictamente * Educación: Cualquiera, pero se tiene en cuenta a los estudiantes de universidad, bachilleres y secundaria como mercado potencial * Religión: Indiferente * Nacionalidad: Mexicanos Psicografia * Clase social: Debido al precio, clase media, media-alta y alta * Estilo de vida: Urbano Conductuales * Ocasiones: Antojo de un postre, Ocasión casual * Beneficios: Satisfacción garantizada * Posicionamiento: Como el mejor postre en la ciudad Segmentación del mercado: El producto ofertado por Carrot Cake, al ser un producto de consumo popular, es más difícil de ser segmentado, pero debido a los puntos de venta y los clientes que la empresa tiene actualmente, se ha llegado a la conclusión de segmentar...
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...INTRODUCTION Wal-Mart Stores, Inc. branded as Wal-Mart, is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. Wal-Mart is a retail giant. This company is the third largest public corporation in the world. Website link to the selected company, www.wallmart.com Background: Sam Walton, a businessman from Arkansas, began his retail career when he started work on June 3, 1940, at a J. C. Penney store in Des Moines, Iowa where he remained for 18 months. In 1945, he met Butler Brothers, a regional retailer that owned a chain of variety stores called Ben Franklin and that offered him one in Newport, Arkansas [1]. Walton was extremely successful in running the store in Newport, far exceeding expectations [2] .However, when the lease came up for renewal, Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, he opened a new Ben Franklin franchise in Bentonville, Arkansas, but called it "Walton's Five and Dime." There, he achieved higher sales volume by marking up slightly less than most competitors [3]. On July 2, 1962, Walton opened the first Wal-Mart Discount City store located at 719 Walnut Ave. in Rogers, Arkansas. The building is now occupied by a hardware store and an antique mall. Within five years, the company expanded to 24 stores across Arkansas and reached $12.6 million in sales [4]. In 1968, it opened its first stores outside...
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...UCLA EXTENSION - STRATEGIC MARKETING Homework Assignment #1 Prepared by Basak Alemdag WALMART RETAIL ANALYSIS Business description Walmart is an American retail corporation that runs chains of large discount department stores in various countries. It is currently the largest retailer in US and in the world and also the world's third largest public corporation according to the Fortune Global 500 list in 2012. Today, Walmart operates in 15 countries with a total of 8500 stores. It is well-known for its low-cost structure. Founded by Sam Walton in 1962, the company is headquartered in Bentonville, Arkansas. Walmart is still a family-owned business, run by the Walton Family who has the 48% stake of the company. It also owns a chain of warehouse stores in North America, called “Sam's Club retail warehouses”. Walmart has a wide range of product categories under the following departments: Electronics, Auto&Tires, Apparel, PhotoCenter, Books, Sports/Outdoors, Home Improvement, Baby, Patio&Garden, Toys, Health, Pets, Grocery, Gifts, Beauty, Movies&VideoGames, Party/Occasion, Pharmacy, Jewelry. Customer identification Walmart essentially targets price-sensitive consumers as their regular customers. It offers overall medium-quality goods with lowest prices, and it is the main reason most customers shop from Walmart. The average US Walmart customer's income is below the national average, and analysts recently estimated that more than one-fifth...
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