International Marketing Report 1993 Case Solution

International Marketing Report 1993 Case Solution

The cultural environment of Mexico is very strong as the people give utmost respect and importance to their traditions and heritage. The sense of social meetings and trust is very high in the Mexican society and both whether the customers and the buyers firmly believe in this tradition(Service, n.d). Therefore,it is obvious that the customer will likely prefer to buy from someone he or she trusts and knows therefore, it is important for the management of the company to build trust or look for means to build trust relationship with the society when entering in the market.


There are several furniture companies that are operating and competing in the Mexican furniture industry and the top most are mentioned here. The most dominant among all the furniture retailer in the country is the El Puerto de Liverpool SAB de CVwhose market share is roughly 10%. The most prominent margins of the company were based on the in-house furniture products and its dominance in the markets of the country is due to the customer friendly relationships with the customers, positive brand image and a high sense of trust with its services to the customers. Muebles Dico SA de CV is another company that dominates the furniture industry of the country.Its dominance is also based on customer care, high quality products and positive trust levels with the customers(International, 2015).


The management of the organization has several options for launching itself in the markets of Mexico and some of them are joint-venture, licensing the brand, buy an existing company or launch itself directly in the market.

If the management of the company decides to go for Joint-venturing then the advantage for it will be that the profits and the revenues of the company will increase as the local entity has a market share of its own however, the company will not be able to establish itself in the market. If the management of the organization decides to license the brand then the business will benefit from the value of the franchise along with the retail supply of products however, it might lead to a compromise in the quality of service.The management of the company should acquire El Puerto de Liverpool SAB de CV as the market share of the company is dominant and it has a presence in the markets already. This will help the management by cashing in the goodwill and reputation among population of the company. The disadvantage for the management of the company will be too much diversified products. The company will agree for acquisition because it will enable the global exposure to its products.


The market trends of the company show that there is market segregation among the population of the society as there are two types of customers where one of them prefers high end products and the other prefers the low end products. The management of the company should reach out to both the markets of the society as the population of the country is already struggling regarding the purchasing power,there fore it is necessary to target this segment as well(V Jones, 2007). The high end products of the company as well as the low end products of the local company will assist the management of the organization to attend both segments.


The marketing strategy of the management of the company should be based on quality service and valuing customers as per the analysis of the cultural environment of the country. It is necessary for a business to build the trust level and promote the recognition of the brand with its target markets. This can be done through several ways as mentioned below………………….

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