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Summary
Argentina supermarket retailer Supermercado Disco is facing a serious decision about the method in which to expand. ... Ultimately, the decision that will be recommended to Supermercado Disco is to buy or enter into a joint venture with Santa Isabel and expand into Chile.
Alternatives
There are several options for Supermercado Disco’s expansion. ... Furthermore, the choice is available to Disco to either attempt to expand alone, competing with other, better established retailers, or to buy or partner with one of them, such as Santa Isabel or Ahold.
Analysis
Supermercado Disco has established itself as the second largest supermarket retailer in Argentina by providing quality products at competitive prices, as well as premier customer service. ... The strategy for expansion must focus on these benefits to ensure that what has benefited Disco in the past is what expands their market share in the future. ... Disco’s presence is second only to Carrefour’s hypermarkets in Argentina, which are well entrenched in the large cities. ... Disco already has plans to expand more slowly than the competitors. Since they serve the middle to high class segments of the population, investing heavily in hypermarkets to attempt to compete directly with Carrefour is dangerous – it gets away from the core traits that made Disco a success.
Approximate Word count = 1000
Approximate Pages = 4
(250 words per page double spaced)
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