BUSINESS FACULTY

INTERNATIONAL BUSINESS AND

MANAGMENT CAREER

FIELDWORK N° 6 – Long-term relationships

of AJE GROUP in Mexico

Course: Global Market Perspectives

Teacher: Coronel Aquiles, Jorge

Members of group 3:
 Arroyo Egoavil, Diana Noemí – N00048758
 Castillo Condorpusa, Maria Angela – N00062301
 Ramos Quispe, Vivian Alexandra– N00130733
 Rodriguez Ramos, Jerson Frank – N00135765

Lima, Perú – 2022

 Long-Term Relationship of AJE GROUP in Mexico
For what is the long-term relationship of AJE group in
Mexico, the chairman of the board of Ajegroup, Angel
Añaños mentions the following: the basis of the
company's success lies in a combination of better
quality, good taste and fair price.
"This key has achieved that our company reaches the
high levels of competitiveness existing, and that it has
conquered homes both in Peru and in other parts of
the world," says the businessman.
Additionally in Mexico, Ajegroup installed a state-of-the-art megaplant that has
several fully automated bottling lines. What is most surprising here is to see the
operation of gigantic robots that perform almost all the tasks. The company has
no more than 400 workers in the factory but an army of vendors across the
country. Also, in the area of dispatch of the final product there is a great
movement. Dozens of trucks wait their turn to receive Big Cola packaging. The
company has its own warehouses and distribution centers. The only thing it
outsources is transportation, paying commissions to truckers. Ajemex thus has
a strategic alliance with many small Mexican entrepreneurs that were not formal
before, but have already been formalized. And, this alliance works as follows:
Each truck driver is accompanied by a Big Cola salesman, who is in charge of
"conquering" the small winemakers. And it is that 80% of the Mexican soda
market moves in small stores.
On the other hand, for AJE Group to develop a long-term relationship in Mexico
successfully is thanks to the cost leadership strategy. In this part we will
mention the generic strategies for above-average performance, proposed by
Michael Porter: cost leadership, differentiation and focus. The first of these,
which is followed by Ajegroup throughout its history, is to obtain an overall cost
lower than that of competitors.
It can be said that this strategy is based on achieving a minimum final cost with
respect to the competition, which together with an acceptable quality and a
pricing policy allows to achieve sales volumes and a profitable market share
growth. Cost leadership is perhaps the clearest of Porter's three generic
strategies. With lower costs, you also have the option to offer your products at
prices lower than those of the competition. But the cost leadership strategy
should not be confused with a lower price strategy.
Finally, with lower costs and lower prices the company has the opportunity to
make higher sales and capture a significant market share. And this is what
Ajegroup has achieved wherever it has been installed.