Walmart de Mexico

Walmart de Mexico - on their imports going down from 10% to...

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Global Dimensions of Business October 7, 2008 Wal-Mart de Mexico The passing of the North American Free Trade Agreement (NAFTA) lifted the tariffs making it easy for Wal-Mart to keep their low prices. This was the biggest challenge Wal-Mart faced before NAFTA was passed. NAFTA also encouraged Mexico to improve the transportation infrastructure making Wal-Mart’s logistics much easier. Wal-Mart’s success is due to both the passing of NAFTA and its competitive strategy. Wal-Mart would not have been able to compete with the local retailers without the tariffs
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Unformatted text preview: on their imports going down from 10% to 3%. Since the lowering of these costs Wal-Mart has been on a level playing field with the other retailers and because of their competitive strategy they were able to pass up the competition. Because Wal-Mart buys in such huge quantities they are able to negotiate the price down. The smartest thing Wal-Mart has done is pass on these savings to their customers, something the competition doesn’t always do. Wal-Mart also built super warehouses in central locations to cut down on shipping costs....
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This note was uploaded on 09/08/2010 for the course BUS 187 at San Jose State.

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