a) b) c) State the two (2) shopping habits of the Mexicans that were different. Explain how Walmart adjusted its strategy in Mexico. Discuss the four (4) issues stated in the above case study that Walmart needs to understand in order to penetrate the Mexican market.
a) b) c) State the two (2) shopping habits of the Mexicans that were different. Explain how Walmart adjusted its strategy in Mexico. Discuss the four (4) issues stated in the above case study that Walmart needs to understand in order to penetrate the Mexican market.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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![Walmart's Foreign Expansion
Walmart, the world's largest retailer, has built its success on a strategy of every day low
prices, and highly efficient operations, logistics, and information systems that keeps
inventory to a minimum and ensures against both overstocking and understocking. The
company employs some 2.1 million people and approximately $91 billion of these sales were
generated in 15 nations outside of the United States.
Initially, the retailer hit some headwinds in Mexico. It quickly discovered that shopping habits
were different. Most people preferred to buy fresh produce at local stores, particularly items
like meat, tortillas, and pan dulce which didn't keep well overnight. Many consumers in
Mexico also do not owned cars, so they did not buy in large volumes as consumers in the
United States did.
Walmart adjusted its strategy to meet the local conditions. They hired local managers who
understood Mexican culture, letting those managers control merchandising strategy, building
smaller stores that people could walk to and offering more fresh produce. They also make
sure that all the products are not sold in big bulk and customers can buy according to their
needs. Walmart also ensure that the fresh products are supplied regularly by local suppliers
to ensure the prices are kept low at all times.
At the same time, the company believed that it could gradually change the shopping culture
but was sceptical in changing Mexican culture norms and value systems. The Mexican
social structures, language, religion and education are some of the issues that Walmart
needs to fully understand. This is to ensure that their consumers in Mexico will benefit its
presence and support the company's objectives.
Source: Adapted from International Business: An Asian Perspective; Hill, Wee, Udayansakar., 2016,
Mc Graw Hill.
QUESTION 1
a)
b)
State the two (2) shopping habits of the Mexicans that were different.
Explain how Walmart adjusted its strategy in Mexico.
Discuss the four (4) issues stated in the above case study that Walmart needs to
understand in order to penetrate the Mexican market.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F609716e4-3357-423a-a951-d41798b3d481%2F89b35a08-eb89-4d4a-a518-b399188b1166%2Fjbe8fs8_processed.png&w=3840&q=75)
Transcribed Image Text:Walmart's Foreign Expansion
Walmart, the world's largest retailer, has built its success on a strategy of every day low
prices, and highly efficient operations, logistics, and information systems that keeps
inventory to a minimum and ensures against both overstocking and understocking. The
company employs some 2.1 million people and approximately $91 billion of these sales were
generated in 15 nations outside of the United States.
Initially, the retailer hit some headwinds in Mexico. It quickly discovered that shopping habits
were different. Most people preferred to buy fresh produce at local stores, particularly items
like meat, tortillas, and pan dulce which didn't keep well overnight. Many consumers in
Mexico also do not owned cars, so they did not buy in large volumes as consumers in the
United States did.
Walmart adjusted its strategy to meet the local conditions. They hired local managers who
understood Mexican culture, letting those managers control merchandising strategy, building
smaller stores that people could walk to and offering more fresh produce. They also make
sure that all the products are not sold in big bulk and customers can buy according to their
needs. Walmart also ensure that the fresh products are supplied regularly by local suppliers
to ensure the prices are kept low at all times.
At the same time, the company believed that it could gradually change the shopping culture
but was sceptical in changing Mexican culture norms and value systems. The Mexican
social structures, language, religion and education are some of the issues that Walmart
needs to fully understand. This is to ensure that their consumers in Mexico will benefit its
presence and support the company's objectives.
Source: Adapted from International Business: An Asian Perspective; Hill, Wee, Udayansakar., 2016,
Mc Graw Hill.
QUESTION 1
a)
b)
State the two (2) shopping habits of the Mexicans that were different.
Explain how Walmart adjusted its strategy in Mexico.
Discuss the four (4) issues stated in the above case study that Walmart needs to
understand in order to penetrate the Mexican market.
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