Licenciado

Bimbo en China


12/11/2012
BIMBO IS EXPANDING TO CHINA
Bimbo is thinking about expanding to the world's largest market, one of the richest and steadily rising. In Mexico and elsewhere in Latin America, the distribution of Bimbo has been a cornerstone of its success. With a system of 'clearinghouses' and fitted with hand held sellers to raise orders, production of the bakery is almost justin time. More than 85% of sales are retail Bimbo with this mechanism. China represented a challenge that Mexicans had no reference.
In this case we need to identify what are the pros and cons of the situation, because if it should expand as you will achieve.
Also identify the biggest problems that the company may have entry to a market as large and varied as the Chinese. The problems we facetoday and those who have faced and how they have achieved success in adverse situations.
Bimbo analyzes different strategies that could take and identify which were the most beneficial and used. We will also give our opinions and recommendations on what has happened in the case-China Bimbo.
At the end we will measure the success of this business case, if at the end it was worth it to expand to theeast and to a market as difficult and unknown to the Mexicans.


COMPANY PROFILE: GRUPO BIMBO
* GRUPO BIMBO is a Mexican company and world leader in baking companies.
* GRUPO BIMBO was founded on June 15th of 1945.
* GRUPO BIMBO has more than 127,000 employees.
* GRUPO BIMBO belongs to the food industry.
* GRUPO BIMBO is composed of a total of 153 factories, 43 of them areplaced in Mexico, and the rest are all over the world.
* GRUPO BIMBO has presence in 19 countries.
* GRUPO BIMBO has a large distribution network composed by more than 50,000 routes, is the largest network in Mexico, and one of the largest networks worldwide.
* They are listed in Bolsa Mexicana de Valores since 1980.
* GRUPO BIMBO covers more than 150 brands and sells about 10,000products under the name of these brands.
* Some products are: package bread (white bread, etc.), crackers, rolls, tortillas among others.
* GRUPO BIMBO has over than 2.1 million sales points.
* GRUPO BIMBO has strategic alliances with these companies: Arcor, Rich, y Galletas La Moderna in Mexico, Alicorp in Peru and Noel in Colombia.
* Their sales of 2011 were 10, 712 million USD.* GRUPO BIMBO entered the chinese market when they bought PanRico for the quantity of 9.2 million €.
* In Asia GRUPO BIMBO has 2 factories, and over 1500 employees and they sell over 100 products to 27 cities of China, they have 180 distribution routes and 7,300 sales points.

PROBLEM STATEMENT

* The Mexican Bimbo has become the company's largest packaged bread world. Its secretis a mix of logistics and financial health to grow from acquisitions
* With these operations Bimbo reach 19 countries and 51% increase in the number of its production facilities, will have 43,000 to 50,300 distribution routes.
* Bimbo has a little problem in China: the Chinese do not like the bread.
* When Bimbo began operating in the Chinese market turned to its flagship product inLatin America, the “gansito”. The chocolate-covered cake, filled with cream and jam, secure conquer the local palate, as indicated by market research. But they were wrong and the Mexican company had to withdraw from the shops and rethink their strategy.
* For Daniel Servitje Montull, current CEO of the company, in the baking industry is not necessarily easy to have a profitable business. "Itrequires a short shelf life of the products, which forces you to have your integrated production and distribution chain and practically carry out a high level of fixed costs," he says. "We have the patience to develop those capacities for production and distribution networks that allow us to be profitable in the long term."
* Bimbo entered China in 2006, when it acquired Beijing Panrico Food...