Should Coe’s expand to Mexico

Should Coe’s expand to Mexico

The situation is very complicated because there are advantages and disadvantages in both cases, either to expand to Mexico or to remain on the American market.

we will look at the situation in both cases and then draw conclusions about the best situation for Coe's.

First we will talk about the advantages of staying in the American market

First of all, the most important thing on the American market is that the company is doing very well and as the boss says "even in times of crisis the company is profitable".

In addition, consumers in the United States are very convinced by Coe's. People seem to enjoy going to Coe's to buy their property.

And one of the most important things from a strategic point of view is that this company stands out from its competitors because it does not target exactly the same population as its competitors: consumers at Coe's are better able to pay for their rent because 50% of consumers end up buying their property at the end of the loan unlike 25% among their competitors. This is because the population that comes to buy is a population: people in here who'd never have considered Coe's before--wealthier folks who are nervous about committing to big-ticket items outright.

Moreover, this can be seen as an advantage, particularly by investors: the company does not take any risk by remaining on American soil and thus continues to generate profits in an easy way

This leads us to believe that it is better to stay in the United States.

However, there are many promising signs that Coe's is opening up to the Mexican market.

First of all, it is important to remember that many of their customers in the United States are of Mexican origin. This gives them an advantage because, as the text says, they still have family in Mexico. This will help them get started because the brand will benefit from word-of-mouth communication.

There are already ads in Spanish which reduces the marketing costs to make ads but be careful to target the customer well a Spanish ad does not necessarily mean that it targets a Mexican audience

Moreover, according to the analyst, there is good potential to open stores in cities near the border. Mexico is a country where the transportation costs of labor rental etc... are very cheap compared to the United States.

One of the points that I think is essential is that there is still no competition in Mexico and the market is large.

In addition, there are legal problems in the United States and the regulatory authorities of this market should apply new laws that will not work in their favour, which is why it is necessary to diversify its activity by opening stores in Mexico.

So to conclude for me it is important to diversify its activity especially since it benefits from a strong relationship and a good reputation with customers of Mexican origin.

...