BIMBO CASE
DRAFT TEAM 3
What are the general trends in the macro environment that can affect Bimbo's business in Mexico, the USA and Brazil?
Mexico
Bimbo previously was a family-owned company in industrial baking; they are specialized in bread and sweet goods.
Bimbo has a total of US$5.24billion with a net profit of $271 million counting with more than 84,000 employees with 72 plants and 9000 distribution centers around 17 countries.
17 countries, 100 brands, 5000 products.
The majority in sales of Bimbo is in Mexico with the 70% of them, because of the diet trends of Mexican people.
But also Mexico has higher ingredient costs because of its demand of ingredients with eliminated fats and also the consumption of whole grains.
Bimbo has all the expertise in the Mexican market with efficient operation of plants and its distribution. It's a financially healthy company and the expansion is fueled with free cash flow.
GDP 1,261 billion USD
USA
It's a large market potential with their massive bread consumption, also an advantage is that the distance is really short and Bimbo can build a favorable distribution channel.
The market in U.S. for the non-artisanal bread is valorized in $12.2 billion.
Bimbo has two large competitors in the U.S. George Weston and Interstate Bakeries. The market for Healthy food is growing rapidly is a great opportunity for Bimbo.
Bread culture es very similar, buns, packaged bread and sugar confectionery, also there is a large group of Hispanics that are a potential goldmine. 1 out of 7 are Hispanic.
GDP 16,800 billion USD
Brazil
One of the disadvantages is that the industrial bread market is decreasing and the market structure is different and difficult for entry, also Brazilians have cultural differences.
GDP 2,246 billion USD
*5 force analysis, VRIO and Key factors of success pending
Should Bimbo Group be going to China? Why or why not? If Grupo Bimbo continues its expansion in China, what (if anything) would you change about their
What are the general trends in the macro environment that can affect Bimbo's business in Mexico, the USA and Brazil?
Mexico
Bimbo previously was a family-owned company in industrial baking; they are specialized in bread and sweet goods.
Bimbo has a total of US$5.24billion with a net profit of $271 million counting with more than 84,000 employees with 72 plants and 9000 distribution centers around 17 countries.
17 countries, 100 brands, 5000 products.
The majority in sales of Bimbo is in Mexico with the 70% of them, because of the diet trends of Mexican people.
But also Mexico has higher ingredient costs because of its demand of ingredients with eliminated fats and also the consumption of whole grains.
Bimbo has all the expertise in the Mexican market with efficient operation of plants and its distribution. It's a financially healthy company and the expansion is fueled with free cash flow.
GDP 1,261 billion USD
USA
It's a large market potential with their massive bread consumption, also an advantage is that the distance is really short and Bimbo can build a favorable distribution channel.
The market in U.S. for the non-artisanal bread is valorized in $12.2 billion.
Bimbo has two large competitors in the U.S. George Weston and Interstate Bakeries. The market for Healthy food is growing rapidly is a great opportunity for Bimbo.
Bread culture es very similar, buns, packaged bread and sugar confectionery, also there is a large group of Hispanics that are a potential goldmine. 1 out of 7 are Hispanic.
GDP 16,800 billion USD
Brazil
One of the disadvantages is that the industrial bread market is decreasing and the market structure is different and difficult for entry, also Brazilians have cultural differences.
GDP 2,246 billion USD
*5 force analysis, VRIO and Key factors of success pending
Should Bimbo Group be going to China? Why or why not? If Grupo Bimbo continues its expansion in China, what (if anything) would you change about their