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How will the Joint Venture Kmart Survive in the Mexican Market - Essay Example
El Puerto de Liverpool and Kmart International of the United States have signed a joint venture agreement to put Kmart, Mexico. The Chief Executive Officer is thinking how he will put the plans of operating a Kmart in Mexico. He is deciding whether to hire people from Mexico or get Americans, He is analyzing whether to use the American style of retail marketing(Strickland, 1999), or implement another marketing strategy(Collins & Devanna,1992)…
The Mexican customer(Harvard Business School, 1999) is mostly from the uneducated sector. Most of the parents force their children to leave school after having five years of education. This is because the parents need a helping hand to augment the small family income.
Since the ElPuerto de Liverpool and Kmart International have already agreed by signing the joint venture contract, the issue now is whether the joint venture will survive or not in until the next performance evaluation period. Since The Mexican customer behavior is different from the customer wants and needs of the American people, there is a need study what the company's next moves will be in order to survive.
El Puerto de Liverpool has signed a joint venture agreement with Kmart International to put a Kmart retail store in Mexico. Mexicans earn an average of United States $3.94 per day. The Managers in companies in Mexico are asking for a basic income of United States $ 10,000. This is because they come from rich families. Mexicans buy in small quantities daily from the butcher, fish shop, baker and street vendors due to their low income. Most of the working population of Mexico belong to the below fifteen year old age. It is customary for parents to stop sending their children to school. ...