Winning War against Multinational Retail Chains

Winning War against Multinational Retail Chains

Report – Case Analysis and Application of Strategy ModelsStudents are required to explain in report format, with reference to a case of your choice (from the list below) how any one of the following would be applied: Business Strategy, Corporate Strategy, Acquisitions and Structure, International Strategy, Cooperative Strategy, Sustainability. Be sure to base your answer on the models studied in class and quote academic sources.

INTRODUCTION

This case examines how Super Selectos, a local food retail chain from El Salvador, became successful in competing against Walmart, the largest food retailer in the world. After an overview of Central America region and the retail industry, the strategies of global retailers are described. Further, the case describes the food retailers in Central America and the Calleja Group. The case then delves into the competitive environment by reviewing the history of Walmart and how it entered Central America. The strategies used by Super Selectos are examined throughout the
case in addition to forming SUCAP, Supermercados de Central America y Panamá, a strategic alliance established by owners/founders/CEOs of the leading domestic supermarket chains in Central America. This case is ideal for demonstrating the importance of the external environment, competitive analysis, and SWOT analysis. The following points are to guide a review and discussion of these important concepts. Describe the general environment that Super Selectos faces. What are the segments in the general environment that relate to Super Selectos’ situation?

 Conduct a competitor analysis and assess the levels of market commonality and resource similarity that Super Selectos has with Walmart. How will they influence competitive behaviour and the intensity of rivalry?

 Considering Super Selectos’ external and internal environmental conditions, does a SWOT analysis reveal any insights to enhance the company’s efforts to compete or improve performance?

 Examine Super Selectos’ strategies. How can the company remain as a market leader in El Salvador? Based on your analysis, make recommendations in order for Super Selectos to compete with Walmart.

EXTERNAL ANALYSIS

Describe the general environment that Super Selectos faces. Segments in the general environment that impact Super Selectos are primarily demographic, economic, political/legal, and global segments. Central America has a
growing economy as a region, and El Salvador is the fourth largest economy in the Central America region. Super Selectos is the largest local food retailer in El Salvador. El Salvador has several important and unique segments in the general environment. The primary segments in the general environment that Super Selectos faces are: