Performance of Grupo Bimbo Company

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Introduction
Grupo Bimbo founded in 1945, is the largest Mexican owned baking and confectionary company which manufactures over 10,000 products under 100 different brands. Some of their biggest confectionary brands are Barcel, Mrs. Baird's, Entenmann's, and Pullman whose products include chocolate bars, hard candies, gummies, licorice, and many more. Their headquarters are located in Mexico City, but they operate on a global scale with their biggest markets being the Americas, Asia and Europe. Grupo Bimbo employs over 125,000 people across 19 different countries. View Appendix B for a SWOT analysis to get quick view of the company's current standing.
VRI
V- Do resources and capabilities meet a market demand? Do they enable a firm to exploit an external opportunity or neutralize an external threat? Grupo Bimbo definitely has the resources and capabilities to meet market demands hands down. This can be seen with through their numerous brands, products, factories and employees. What they don't have is a solid brand image and brand recognition that will carry its sales like Mars, Hershey and the other major players have.
R- Are they rare? Are they controlled by only a small number of competing firms? I would say that confectionary companies are not rare because there are so many big players already (Hershey, Nestle, Mars, Mondelez). With that being said, it doesn't mean that Grupo Bimbo should just shut down, just means they definitely need to be able to come up with good strategy and be able to execute well enough.
I- Is it difficult for competitors to successfully imitate or substitute? Do firms without the resource/capability face a cost disadvantage in obtaining or developing it? In the confectionary industry there are an...

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A Second Look at Company Performance
Grupo Bimbo is quietly creeping up the food chain in the confectionary industry. They are building a solid international market foundation through acquisitions and mergers which is only going to get bigger. Acquisitions and penetrating international markets is an expensive operation to execute, thus some of the financial debt they are facing which could have greatly impacted their performance. At the end of the day it is a very necessary investment which will broaden their horizon. After looking at the strategies with a closer eye the firm's performance is most definitely only going to get better. They are going to intensify their expansion goals through more acquisitions which will increase their competiveness and profit margins. Grupo Bimbo is most definitely a company that you will be hearing a lot more from in the future.

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