Case Study Mastretta's

Why Mastretta did not have success in the market?

Business and Management SL Internal Assessment

Written Commentary

Table of Contents

Cover page………………………………………………………………………………………1

Introduction 3

Sources of finance 4

Marketing 5

The external environment 6

Conclusion 7

Introduction

Mexico is well known for being a country in which the production of the automobile industry is one of the most important economic activities in the nation, also, Mexico can be considered as a country in which the car market occupies an important role for the foreign automobile companies that invest in the North American nation. “Automotive is Mexico’s most important industry within manufacturing, accounting for approximately 3% of

Mastretta is a Mexican company that used to produce and sell sport cars destined mainly to foreign countries and a certain sector of the Mexican market. Currently Mastretta is still existing, but the truth is that many years ago the company reached the term of bankruptcy due to different factors, among them a wrong financial administration, that forced the company to stop its productions.

Carlos Mastretta, president of the Company’s Board of Directors, said that the “irresponsible” management of the administrators made that in only 8 months the resources provided in order to increment the production of the company, were depleted.2

There are many speculations at the moment to consider the reasons of why Mastretta failed to reach a good reputation in the international market, or at least a good position in the Mexican one; this essay will study the case of Mastretta from a point of view based on Business and Management terms in order to answer the question:

Why Mastretta did not have success in the

Is well known that if a business wants to have success or to attract the consumer, it must promote the products that the enterprise produces; and in the case of Mastretta, it didn’t happen.

The company did not realize the promotion that other companies realizes through TV, Radio or even social media. Due to the lack of promotion, the Mexican population didn’t know the products that the company launched to the market and it can be considered that a certain group of people even didn’t know that the company existed.

The other problematic factor of the company was its place. It was not until 2014 when the company opened its first agency in the city of Toluca. A thing that must be remarked is that another failure that Mastretta had was that the company opened its agency in a city that can be considered as important, but the truth is that it would has been better for the enterprise to open the agency in a city with more relevance in the country, like the Mexico City, for