Walmart made two significant changes in its operations in Mexico. First, Walmart de Mexico purchased Walmart Centroamerica in 2009. One thing that facilitated that acquisition was the fact that Mexico, in addition to being a NAFTA member, signed free trade agreements with 49 countries around the world, including several in Central America. This meant that they could gain access to even more products and suppliers. Walmart worked with thousands of suppliers throughout Mexico and Central America, with more than 60 percent of their supplier base in Mexico composed of SMEs (small - and medium-sized entities). They were also able to better coordinate the network of 14 distribution centers in Mexico and Central America.
1) How much of Walmart's success is due to NAFTA, and how much is due to Walmart's inherent competitive strategy? In other words, could any other U.S. retailer have the same success in Mexico post-NAFTA, or is Walmart a special case?