Wal-Мart goes south

WAL-MART GOES SOUTH

The free trade in North America has been of paramount importance to Wal-Mart, and that this is due to economic integration was achieved within the region, enabling it to remain competitive with the strategy develops, which is being prices lower.

A major positive benefit that TCLAN had the Wal-Mart is that decreased tariffs on U.S. products sold in Mexico. After signing the treaty, and there were no barriers and Wal-Mart could be found at the same level of its competitors, and may well become the number one. The TCLAN also encouraged Mexico to improve its transportation infrastructure, which helped Wal-Mart to solve the logistical problems of Wal-Mart.

Wal-Mart is a company which was too benefited from TCLAN because it was the best company that has taken advantage of every line of the treaty in order to expand throughout the world.

The success that Wal-Mart is due to the effect of TCLAN, however you have to take into consideration that these benefits would not be enough, because these are also applied in the competition. Thus, Wal-Mart, applies its competitive ability as is maintaining a good relationship with their suppliers allowing them to negotiate better prices with this cost and better treatment. All this is possible due to its high volume of purchases and large size. It also works closely with suppliers on inventory levels using advanced information that notifies providers when shopped and when Wal-Mart will order more goods.

Allowing suppliers to plan production runs more accurately, thereby reducing costs, which also transferred to Wal-Mart. It also has a unique distribution system that reduces costs.

This ultimately benefits customers. This is not a special case, is the proper management of resources coupled with the right management practices which would allow the company to achieve a position in the various markets in which it operates.

Comerci to remain competitive, what it does is built on the benefits of TCLAN, focusing mainly on lower tariffs or improved infrastructure, however, have failed to use the Wal-Mart level.

Comerci tactics has fought Wal-Mart reducing its own prices, but, in many articles, cannot keep such low prices. This is because the bargaining power of Wal-Mart is so big that you can get a better deal.

Comerci was used to offer certain items at bargain prices or deep discounts, a strategy known as high and low, rather than reduce prices. These stores are trying to adjust their pricing structure to match that of Wal-Mart, which is not very favorable due to continued low prices from Wal-Mart.

Wal-Mart Comerci induced to join with two other national supermarket chains in trouble, Soriana and Gigante, to form a purchasing consortium that allows wholesale negotiate better prices with suppliers.

Comercial Mexicana, SA given the competitive position of Wal-Mart should join the consortium

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