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EM-Supermercado - Siming Zhu AEM 4420 Emerging Markets Case...

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Siming Zhu AEM 4420 – Emerging Markets October 29, 2008 Case Summary “Supermercados Disco: Regional Strategy” Problem: Over the last 40 years, Supermercados Disco has grown from a small food retailer with one location into a supermarket giant in the Argentinean marketplace. Disco has differentiated itself from competitors by offering high quality products at an affordable price and providing superior customer service within its retail locations. Traditionally, its growth strategy was to increase profitability and market share by increasing sales and efficiency in its stores. However, due to strong economic growth and deregulation in the 1990s, large global supermarket groups started entering Argentina, quickly driving down profit margins and saturating the market. In facing this new, more powerful competition, Disco’s management had a number of alternative strategies to choose from. The underlying problem facing Disco is
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