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Wal-Mart's low-priced retailing to the Mexican environment

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In Mexico, Wal-Mart Is Defying Its Critics

1. How did Wal-Mart adapt its low-priced retailing services operation to the Mexican environment and to the needs of Mexican customers?

2.How have these adaptations contributed to Wal-Mart's success in Mexico?

3. What else do you think Wal-Mart needs to do in Mexico?

Here is the Summary:
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1. How did Wal-Mart adapt its low-priced retailing services operation to the Mexican environment and to the needs of Mexican customers?

Wal-Mart started its operations in Mexico in 1991 through a joint venture with Cifra, Mexico's leading retail company. Wal-Mart adapted its low-priced retailing services operation to the Mexican environment and to the needs of Mexican customers in the following manner:

1) High employee productivity

Wal-Mart reduced its cost and improved its customer services by paying good salary to the employees. Wal-Mart's jobs pay well by Mexican standards and serve as a gateway to the state health and pension systems. Moreover it gives proper training to workers to rise to management.

2) Everyday low prices

Wal-Mart lowered prices on thousands of staples from tomatoes to diapers, helping stretch low wages here for millions of middle-class and poor consumers. Wal-Mart rolled out its "everyday low prices" (EDLP) policy in Mexico in 1999-2000. Moreover the chain marked tens of thousands of items down as much as 14 percent, and has also passed on further savings, for example when currency shifts decrease an item's cost to the company.

3) Effective cost management

For example In Juchitán, as in other small Mexican towns, consumer goods often cost far more than in cities, partly because of ...

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The response discusses Wal-Mart adapt low-priced retailing to the Mexican environment.

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