Case Study on WalMart in Mexico - Walmex

Wal-Mart has a winner in its Wal-Mart de

Mexico operations, as sales growth in that
country has outshined that of U.S. operations
for quite a while now.
WalMart Background:
In 1962, Sam Walton founded Wal-Mart. Sam
Walton had earlier worked at JC Penney
Corporation, Inc. and also ran Ben Franklin
franchises. Sam's vision that constantly changing
consumer behavior would lead to discount stores led
to Wal-Mart's success.
 Case Study on WalMart in Mexico - Walmex

In 145 cities across Mexico, Wal-Mex has more

than 900 stores and restaurants in Mexico
including Bodega food and general merchandise
discount stores and Superama supermarkets,
Suburbia apparel stores and Vips and El Portón
restaurants. Wal-Mex also runs about 195 Wal-
Mart Supercenters and SAM'S CLUB
warehouses, which generate about 55% of the
company's sales.
 Case Study on WalMart in Mexico - Walmex

Walmart set to open banks in Mexico:

WalMart Stores, Inc. (WalMart), the world's largest
retailer's Mexican arm WalMart de Mexico SAB de
CV (Walmex), laid out plans to open its first in-store
bank branch in Mexico by June 2007. Walmart's
branches of the venture will be known as Banco Wal-
Mart de Mexico Adelante. Walmart is the second
retailer to gain entry to Mexico's banking sector after
Mexican retail and financial services group Elekra
(Banco Azteca, in 2002).
 Case Study on WalMart in Mexico - Walmex

In 1991, WalMart began its operations in Mexico by

forming a joint venture with Mexico's retail chain
Grupo Cifra SA de CV (Cifra). Cifra, a major
player in Mexican organized retail was the family-
owned retail business of Mexican businessman,
Jeronimo Arango. In 1994, Mexico suffered due to
economic setbacks. During this period, retailers like
Sears Roebuck & Co. and Kmart sold out their
stakes and quit the country. However,Wal-Mart
stayed on.
 Case Study on WalMart in Mexico - Walmex

Walmex got government approval easily to set up in-

store bank branches in Mexico. This was because of
its reputation as a successful retailer that met the
daily needs of the Mexican people. Walmex entry
aimed at making financial products more cheaper to
millions of Mexicans, even those who did not have
bank accounts. And by having banking operations
within its stores Walmex would improve the
customers to its stores and also increase sales.
 Case Study on WalMart in Mexico - Walmex

Questions:
1. Who are the stakeholders of Wal-Mart in
Mexico?
2. What external environmental factors have Wal-
Mart taken into consideration for its business?
3. Has the company taken any business risks in
Mexico? Discuss.
4. Who were the most important Mexican
stakeholders for the company? As a strategic
decision maker how could you analyse the
Mexican stakeholders’ interest?