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WALMART Mexico

Made by: Simina Popuța Pînzaru ValerinaDate: 27.10.2014

Table of contents:

History Overview Meet Walmart (mission, vision, values) Internationalization Walmart approach in Mexico Marketing Mix Achievements Failures Conclusions

History Overview"If we work together, we'll lower the cost of living for

everyone...we'll give the world an opportunity to see what it's like to save and have a better life."

1962 – Sam WALTON opened first Walmart Discount City store in Rogers, Arkansas;1969 , October 31st – the company officially was incorporated as Wal-Mart Stores, Inc.1970 – The company expanded its stores in other states;1979 – First SAM’S CLUB was opened;1980 – Walmart reached $ 1bilion in annual sales, faster than any other companies at that time;1991 – International market expanded Mexico

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1994-1999 – Walmart entered manycountries such as Canada, China, Argentina, Brazil, Germany, KoreaUnited Kingdom, and became the largest private employer in the world;2011 – Expanding to Japan and South Africa Walmart surpassed 11.000 retail units around the world.

2012 – Walmart celebrated 50 years of helping people to save money so they can live better.

Walmart Logos

Mission:Saving people money so they can live better;Vision:Be the best retailer in the hearts and minds of consumers and employees;Values:- respect for individuals;- service to customers;- striving for excellence.

International strategy:- dominate the retail market everywhere;- corporate takeover;- creating a global reputation of offering the best prices;- using its financial power to dominate retails;- pursuing partnerships with retailers;- branching out into new sectors

Why Mexico?~ The country had no systemic trade barriers and relaxed restriction on foreign investment;~ The increasingly growing population that drove up demand for customer goods;~ Signing the North American Free Trade Agreement (NAFTA) in 1984 that determined a period of explosive growth.

Entering the new market:The growing of Wal-Mex started after the joint venture agreement was signed between Wal-Mart Stores Inc. and Cifra;Wal-Mart's power is changing Mexico in the same way it changed the economic landscape of the United States, and with the same formula: cut prices relentlessly + pump up productivity + pay low wages + ban unions + give suppliers the tightest possible profit margins + sell everything under the sun for less than the guy next door = high income and popularity

In 1997 Walmart increased its stake by acquiring 51% of Cifra, and it was renamed, the new company became Wal-Mart de Mexico;By April 2000 the company again increased its stake to 60% and became Walmart the Mexico y Centroamerica;At the end of December 2011 Walmart operates 2037 retail outlets in Mexico including restaurants and supermarkets;In 2012 the company became the largest private sector employer with 209,000 employees.The revenue for 2013 was US $32,7 billionThe net income for 2013 was US $1,9 billion

Income statement evolution

Failures~ An investigative report published in New York times in 2012 says that a former executive of Walmart de Mexico alleged that in September 2005 the company paid bribes in order to obtain construction permits, information and other favors. ~ A later investigation revealed that a bribe of $765,000 was paid to change the zoning map which enabled the opening of a store close to a historical site. ~ Walmart invested $99 million trying to find evidence in its own favor.~ Has been demonstrated that bribery scandal was caused by serious manage-ment and strategy troubles.

Conclusions:- Despite rumors about the company's involvement in corruption, Walmart managed to cope with the challenges of Mexican market. - Walmart de Mexico every year uses a part of its incomes for fighting hunger, recently donated 22,000 tons to hunger-related organizations; - The company assumes environmental responsibility, it recycles vegetable oil to make soaps and animal food; - The company develops the skills of its employees, providing repeated training, and hiring 61,000 associates (2013) - It sustains the gender equity, 51% of its employees are women.

Bibliography:1. Bethany Moreton, Cambridge, Mass.: Harvard University Press. Copyright © 2009 http://harvardpress.typepad.com/hup_publicity/2012/04/wal-mart-in-mexico-bethany-moreton.html 2. James C. McKinley, Jr. (September 28, 2004). "No, the Conquistadors Are Not Back. It's Just Wal-Mart.". The New York Times. Retrieved December 18, 2012.3. Leonardo Iacovone, Beata Javorcik, Wolfgang Keller, James R Tybout, article “The two faces of Wal-Mart in Mexico”, 20 August 2011, http://www.voxeu.org/article/two-faces-wal-mart-mexico. http://harvardpress.typepad.com/hup_publicity/2012/04/wal-mart-in-mexico-bethany-moreton.html 4. http://corporate.walmart.com/our-story/our-business/international/walmart-mexico

5. http://www.walmartmexicoycam.com/

Thank you!