International Expansion of Grupo Bimbo-Challenges and Opportunities
Case Code: BSTR503
Case Length: 11 Pages
Pub Date: 2016
Teaching Note: Available
Organization: Grupo Bimbo
Industry: Baking Industry
Themes: Modes of International Expansion, Globalization
Abstract Case Intro 1 Case Intro 2 Excerpts
Bimbo in Mexico
In Mexico, Lorenzo clearly defined the role and responsibilities of each stakeholder in the business. Torrallardona (mentor of Lorenzo and his partners, earlier in their careers), was given the honorary position of President of Board of Directors, however, Torrallardona provided additional resources and advisory services, and Ramon Montull, father-in-law of Lorenzo, provided land in Mexico. Alfonso was assigned the responsibility of overseeing production and improving the quality of products. Jaime Jorba (Lorenzo’s cousin) was in charge of sales.
When Panificadora Bimbo started operations, the market for baked products, especially bread, in Mexico, was very limited. Mexicans were more familiar with tortillas than bread. Despite having limited scope, Lorenzo and his team primarily focused on producing and delivering unique food products, differentiated in terms of quality......
Bimbo saw an opportunity for growth in the United States among the Hispanics. After exporting to the US for more than five years, it started to acquire businesses in the US in the late 1980s, it acquired Pacific Pride Bakeries and other small baking companies. It also acquired brands and became a major player in the US market......
Growing in Experience
Bimbo entered the Chinese market in the year 2006. Before entering the Chinese market, Bimbo conducted detailed pre-acquisition research to evaluate consumers’ tastes and preferences in the Chinese markets. While Bimbo’s management believed there was scope for expanding in the Chinese markets, it realized that it would need to be more dynamic and innovative in its approach to do so......
Exhibit I:Market Position of Bimbo in Different Regions as on December 31, 2015
Exhibit II:Region-Wise Prominent Brands of Bimbo as on December 31, 2015
Exhibit III: Market Structure of Packed Food Industry in China
Exhibit IV: Revenue Share of Bimbo across Different Regions as on December 31, 2015
Exhibit V: Bimbo’s Market Share in Global Baking Industry as on December 31, 2015
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