WALMART GOES SOUTH

Running Head: Analyzing Wal-Mart’s Growth in Mexico Vis a Vis NAFTA Analyzing Wal-Mart’s Growth in Mexico Vis a Vis NAFTA Student’s Name: Institution: Course Details: Instructor’s Name: Date: Impact of Wal-Mart’s growth to Mexican retailers Since its invention in the 1960s, Wal-Mart has charted a path both controversial and ingenious. For many years now, its expansion into the world’s 18th largest public corporation and the largest private employer has made it the epitome of retail business success, Bustillo, et. al (2011). Initially, its expansion was within the United States but the bold vision of Sam Walton the owner eventually saw more international investment including Mexico. This international aspect of its operations has been tumultuous forcing withdrawals in some cases such as South Korea and Germany, (BBC news 2006 and Sang-Hun 2007). However there are other underlying issues in its growth that can best be exemplified by the Walmex venture in Mexico. One of the main concerns over Wal-Mart’s expansion internationally has been its modus operandi. In Mexico, most of its initial operations were riddled in problems stemming from culture clashes, poor market analysis to stiff import charges. However, the NAFTA agreements changed all this and the retail giant was able to offer its traditional low prices and discounts. Though many pundits argue that the company’s strategies were bound to succeed, the company only got its footing after 2004. The NAFTA rules and regulations obviously reduced tariffs for American goods and attracted investment in the transport sector. If the situation had remained constrictor as it was before, there was no way Wal-Mart could have survived in a non-liberalized market. It is no wonder then that its monopolistic tendencies have been challenged in other markets such as Germany; staff writer Home Advantage (2006). The competitive edge that Wal-Mart had over the other retail shops was non-existent and this is best demonstrated by the chaotic beginning. The success of...