Carrefour's Misadventure in Russia


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR363 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

International Business
Case Length : 16 Pages
Period : 1996-2009
Pub Date : 2010
Teaching Note : Not Available
Organization : Carrefour SA
Industry : Retail
Countries : Russia, France

Abstract:

The case examines the entry and exit strategies of French retailer Carrefour in the Russian market. The company opened its first store in Russia in June 2009, after spending over two years in studying the country's retail markets.

However, within four months, in October 2009, it announced its exit from the market, citing lack of growth and acquisition opportunities. The case discusses Carrefour's entry into Russia, its failed acquisition attempts and the factors that forced it to make a quick exit from the country.

It also examines the business environment in the Russian retailing industry.

Issues:

» Understand the nature of problems faced by retailers like Carrefour in emerging markets.
» Study and analyze the entry strategies of Carrefour in Russian retail markets.
» Examine the reasons that prompted Carrefour to exit Russia in a short period.
» Analyze the retail industry in Russia.

Contents:

  Page No.
Carrefour Exits Russia 1
Background Note 2
Carrefour's Plans for Russia 3
Opening Stores 5
...And Pulls Out 6
Exhibits 9

Keywords:

Carrefour SA, Organic Growth, Acquisition Opportunities, Bureaucracy, Return on Investment, 1998 Financial Crisis, Russian Retail Market, Store Formats, Auchan SA, Metro AG, Seventh Continent, Strategic Priorities, Filion Shopping Mall, Service Standards, Entry and Exit Strategies, Expansion Strategies, Deflationary Environment, Complicated Legislative Framework, Bureaucracy, Global Financial Crisis, Macroeconomic Environment, Retail Trade Law in Russia

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