Case Project: Market Entry into Mexico.
Company: Whole Foods.
• Conduct an environmental analysis of potential markets that your company (whole foods) could enter with one of its key products or product lines.
• Select a mode of entry (export, licensing, franchising, JV, etc) by assessing / quantifying the long term impact of the alternatives to the US parent company. Be sure to explain how you reached your decision.
• Collect additional data related to the country, and product market and draw up a strategy for entering this market. The core of the company market entry strategy will be the description of the positioning and the target market(s) which you have chosen.
• Explain how you chose your mode of entry strategy using models, theoretical frameworks learned in this course. Discuss briefly what are some key characteristics of the organization that you will need to implement and manage your activities in your target country/market.
• Use appendixes and exhibits to summarize your analysis and in-depth thinking. Be sure to show how these informed your narrative in the main body of your report
Focus on this two areas
1. Competitive Analysis - Assess the market conditions (such as size of market, market growth rate, consumers, sales analysis). Address how these conditions affected your firm's competitive advantage.
2. Mode of Entry - A mode of entry into the foreign market(s) that you selected. Pertinent factors surrounding this mode (for example import regulations, customs, payment methods, etc. for Exporting as a mode) should then be covered and how they affected your firm's performance.
In summary, how did you choose the country/region to which your company will expand and why? How did you choose the entry mode and why?
Note Minimum of 3 pages Cite your work.
Some Information Sources that might be useful for your research
Company Data Company's website.
EDGAR1: provides Annual Reports (10K), proxy statements (DEF-14) and other sec filings.
Business Source Complete (Ebsco)2: here you will find journal articles in business, Company Profiles & SWOT Analyses provided by Hoover or Datamonitor, Industry Profiles, and International Industry profiles from Datamonitor.
Mergent Online3: Access to detailed global company information (publicly-traded), including business description, history, property, subsidiaries, officers and directors, long-term debt and capital stock. Financial statements are presented in "as-reported" form.
Preliminary Screening Criteria World Bank, World Development Report (Table 1: Key Indicators of development)
• Once you click the above link, then select any year's report, then full text, then "Selected World Development Indicators" and then find Table 1.
World Bank, Ease of Doing Business Index
Country Indicators World Bank, World Development Indicators
A.T. Kearney, FDI Confidence Index
World Economic Forum, The Global Competitiveness Report
UNDP, Human Development Report
Heritage Foundation, The Index of Economic Freedom
Freedom House, Survey of Freedom in the World (e.g., Political Freedom Index)
Transparency Intl, Corruption Perceptions Index
Hofstede, Cultural Dimensions
Economist Intelligence Unit, Country Reports and Profiles (electronic access from NEU library only)1
Bureau of Labor Statistics, Foreign Labor Statistics
Euromoney, Country Risk Survey (subscription required but you already have the most recent data on your online notes)
EU, Trade Barriers Database
XE, Exchange Rates
US Commercial Service, Country Commercial Guides(section on market research reports might also be useful but requires subscription. However it is free for students/researchers. No subscription is required for the commercial guides)
Deloitte, Business Taxation
Trade Data US Census, Trade Data and Analysis
U.S. Census Bureau Foreign Trade Division, Country Trade Data
UN Comtrade, Bilateral Country Trade data
WHOLE FOODS ENTRY INTO MEXICO
Whole Foods is one of the most innovative companies in the health and wellness area. Whole Foods is the largest natural food grocer in the United States with 300+ stores in the U.S., Canada and United Kingdom. It is into selling high quality, healthy and environment friendly products which have organic roots. The company goes beyond food retailing and extends to support the health, well-being, and healing of both people and planet. The purpose is to improve people's life by giving them healthy eating options.
Mexico is a viable business location for Whole Foods for many reasons.
First of all Mexico's economy grew at a time when rest of the world was reeling from financial meltdown of 2008.
Second, the exchange rate is very favorable. Peso, which was historically worth much less than US dollar, trades at around 12 Mexican Pesos for 1 USD. It makes easier for Mexican consumers to buy U.S. products and services.
Third, there is no cultural shock for Mexican consumers. It is very common to find American products being advertised and sold in Mexico.
Lastly, Whole Foods can establish its presence in Mexico without being under pressure to hire local employees for managing operations.
Mexico is the second largest economy in Latin ...
Strategic choice of mode of entry in Mexico