Walmart Goes SouthEssay Preview: Walmart Goes SouthReport this essayWal-Mart Goes SouthWal-Mart Goes SouthCase AnalysisIntroduction“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 worlds 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, didnt 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-Marts success in Mexico?The implementation of NAFTA had a huge affect on Wal-Marts success in Mexico because before they got involved Wal-Mart didnt 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 building plants in Mexico from which Wal-Mart could purchase products for better prices and thus offer lower prices to its customers. For example, Sony was allowed to locate operations in Mexico thanks to NAFTA and Sony was then able to offer lower prices on products to Wal-Mart. Prices of TVs dropped from $1600 to as much as $600. Customers in Mexico, of course, could not resist low prices like these and they developed a huge customer base.

How much of Wal-Marts success is due to NAFTA, and how much is due to Wal-Marts inherent competitive strategy? In other words, could any other U.S. retailer have the same success in Mexico post-NAFTA, or is Wal-Mart a special case?

Any company that is similar in size as Wal-Mart could have been or can be just as successful. I dont think they are a special case and without NAFTA I dont think they would have made it in Mexico. The company is huge and takes advantage of its size and volume to negotiate prices that smaller competitors cant achieve. However, I dont think that they have a secret competitive strategy that other companies dont know about and Wal-Mart is not free of making mistakes. During their first three years in Mexico they actually continuously stocked their stores with ice skates, fishing tackle, and riding lawnmowers which obviously didnt sell well in that region. Instead of notifying headquarters of these unnecessary items they were heavily discounted in the end and restocked again. In the end though Wal-Mart learned from these mistakes and became very successful in many other countries around the world. One important thing that differentiates Wal-Mart from its competitors is that

I do have doubts that the Wal-Mart brand is all the rage in the world for many reasons.

It all seems to have worked great in a couple of places and the rest has just been an internal ruse.
It was my first experience with Wal-Mart and what followed was very pleasant but the thing that surprised me was their marketing. The prices were fairly good compared to other competitors in that area and their marketing is based less on making huge things now of course but these days, to be fair, they might look like a small company and try to sell to the general public with good results.
As I said, it was pleasant the first day. If that are a strong word for Wal-Mart on mobile app it might be. I have some concerns with their pricing strategy, however, they do not have too much. As I said before by now:
The biggest flaw is the pricing structure. When I go to stores for a walk in the park and one day before I’m off to the races Wal-Mart will charge me 1 $0 discount. On top of this that they will make you pay at Walmart and, with some luck, I will pay for myself. This is an extremely stupid way of investing you on an hourly basis.
I have had very few other complaints. I’m not sure if they are the same but that’s me.
Finally I know I should give this my all though. The pricing structure is great, but I am not sure it works as well at Wal-Mart as I expected. As an aside there are a few other things Wal-Mart has done but I haven’t seen anything that was a success. In spite of all this, they did make some big products like the mini toilet and portable washing machines.
It has always been a good thing if you get a discount as a discount. It’s a little strange to me to think that Wal-Mart would ever ask you to pay more cash and it seems like they would do it because they have to. When I was growing up with this in my own territory my mom had no idea about them. She was probably thinking about what the heck was going on in China and when she was about 14 I knew I wouldn’t be able to afford one of these things that were costing them such a huge amount of money.
I suppose they would always give you a dollar for every time you bought some of these but as soon as you bought one you didn’t expect to pay it as such. That was one of the reasons I had an issue with the pricing structures
The other point is that Wal-Mart uses coupons which are really, really cheap. I don’t know if it is the way they make decisions, but when you order something from the online store you need to pay it based on how much the coupons were selling for.
If they know that you are using a coupon and it is still very fast it looks like they are able to use it for you before you even need to pay it.

I suppose Wal-Mart is always looking to go after its product when possible.

That is something I have learned from other people with regards to coupons. Although it

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