Walmart’s Entry Strategy into Mexico
The entry strategy enforced by Walmart in Mexico (an emerging economy) was one for the books. It can be used by a company that is aiming for global or regional dominance. It wasn’t easy for Walmart to go to a country with very significant cultural differences with the United States. Moreover, Mexico has substantial income differences with the United States, where Walmart was initially based in.
Walmart needed to research and learn the mode of operations used in the Mexican market to oversee its success in a foreign country. Walmart went further to tailor-make its operations for the Mexican market. Walmart had to purchase a 50% stake in Mexico’s largest retailer, which was known as Cifra (“Walmart: Key Insights And Practical Lessons From The World’s Largest Retailer,” 67). They used the know-how which Cifra had gained to conquer the Mexican market. The acquisition strategy worked for them, and they were able to appeal to the Mexican market, which is a market that is different from the American market.
Work Cited
“Walmart: Key Insights And Practical Lessons From The World’s Largest Retailer.” Vol 50, no. 01, 2012, pp. 67. American Library Association, doi:10.5860/choice.50-0386. Accessed 13 Aug 2020.