My Life

1439 Words Aug 10th, 2012 6 Pages
Grupo BimBo
To paraphrase Gehmawat, the world is not flat it’s semi-globalized,
In order to understand the global environement where Grupo Bimbo intervene, a CAGE analysis based on the framework developed by Ghemawat will be performed at a country level (Mexico – USA & Mexico – China) and also at a food industry level.
Armed with this analyisis we will check the relevance of each of the AAA strategy (Ghemawat, redefining global value), the recommended strategy will be then submitted to the 4I’s framework developed by Burton to understand the non-market environement. To complete the market strategy, we will then elaborate a non-market strategy to create an integrated strategy (Burton).

CAGE distance analysis – Mexico /US
Cultural
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bread consumption etc.)
Economy:
Price premium not applicable in the US
Labor costs higher in US Insurance & unionized labor

US Market: recommendations: Adaptation & Aggregation
Rationalize product portfolio to better meet customer demands
• Better targeted products: Taste /Needs: well being products
Integrated strategy: o BIMBO STUDY

• 1. Grupo Bimbo
• 2. INDUSTRY COMPETITION - Highly fragmented and competitive industry structure, with different players in different countries DEMAND PATTERNS - Consumption habits heavily influenced by cultural legacy, demographics, tastes, fashion (e.g. low-carb diets in the US), and price sensitivityDISTRIBUTION NETWORK S - Retailers bargaining power and location, country geography , transportation infrastructure, as well as labor relations affect distribution chain and costsADMINISTRATION - Regulatory frameworks vary widely among countries for labor relations, new business registration, bankruptcy filingBimbo’s globalization challenges
• 3. Mistakes in BRAZIL….Grupo Bimbo entered the Brazilian market wrongfully assuming it was similar to the Mexican one:Overall bread consumption

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