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Grupo Elektra Case Study

731 Words3 Pages

Grupo Elektra is a Mexican company, consistent of four major chains: Elektra, Salinas y Rocha, Bodega de Remates, and The One. All chains together run almost 1000 stores in six countries in Central and South America. In addition to furniture and home appliance retail, electronics and clothing retail, Grupo Elektra provides financial services to customers. The company grows rapidly and is about to decide major steps for international expansion. One of the questions will be whether to enter the US market or not and with which line. The core business of Grupo Elektra is the specialty retail. The side business provides financial service like wire transfer, savings accounts, domestic wire transfers and extended warranties for customers. Grupo Elektra focuses on Mexican households with less than $3000 per month available. Most of their customers are not able to get a loan from traditional banks. By providing customers credits up to $1150, Grupo Elektra defines a new market for offering financial services. In 2000, Grupo Elektra was the largest consumer finance company in Latin America with 2 million active credit accounts and 4 million customers. Grupo Elektra has different financial services in order to be accessible for the whole Mexican population. Especially wire transfer businesses are immense. Customers transfer …show more content…

Grupo Elektra invested annually $27 million in media advertising. Grupo Elektra is a subsidiary of Group Salinas. Group Salinas also owns TV Azteca, which is one of two TV chains in Mexico with nationwide coverage. Group Elektra only advertised through TV Azteca. Because of close relationship, TV Azteca only advertised for Grupo Elektra and not for any competitors of Grupo Elektra. Grupo Elektra did advertised regionally, because Grupo Elektra faced local competition from moms-and-pops stores. The advertisement program of Grupo Elektra with 200 TV ads per year payed

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