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Grupo Bimbo Case Essay

Satisfactory Essays
Norbert Guery

Gupo Bimbo Case

Summary: Bimbo is one of the world's leading baking companies. Founded in Mexico, Bimbo is a house-hold name in its native country. Today, the company's wide product range includes sliced breads, buns, cookies, snack cakes, pre-packaged foods, tortillas, salted snacks and confectionery products. Profitability in Mexico is optimal, partly due to its vending distribution through small, independent mom-and-pop stores. In addition, its product development and incorporation of a wrapping system that’s allows consumers to see and feel the freshness of the product has created a competitive advantage in comparison to its consumers which had used wax materials for years. A broad portfolio of products enables
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In South America, Grupo Bimbo was negatively affected by the surprising cultural changes found in various regions and countries in the continent. Meanwhile, the cost structure in China made it difficult for Bimbo to adapt after its Beijing acquisition done after only two years of practice in the market.

Alternatives: There are three approaches to address the worldwide issues listed above. In an aggregation approach, Bimbo can decide to operate the way it does in Mexico across all borders. By doing so, it would benefit from its efficient local practices in manufacturing and distribution but will ignore local or regional needs. In an arbitrage approach, Bimbo can take a transnational approach, maintaining their current products while taking each region or country’s needs in consideration and doing business in local markets with the product and delivery system that meets their necessity. In an adaptation approach, Bimbo could take the specific needs of each location seriously and customize their products, distribution channels, marketing, and various efforts in order to specifically satisfy each market individually.

Recommendations: I recommend that Bimbo take a transnational approach. This arbitrage approach can offer an effective balance. Bimbo can do what it does best globally, as well as other business functions that are similar across the globe, but specify address their attention regionally to operations they do less well or that require a lot
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