This website uses cookies to ensure you have the best experience. Learn more

Metro Case Study

2588 words - 11 pages

Metro Cash & Carry

A German Wholesaler’s foray into the Indian Markets

Case Analysis

Table of Contents
S No. | Topic | Page No. |
1 | Introduction | 3 |
2 | China | 5 |
3 | China – Challenges | 5 |
4 | Russia | 6 |
5 | Russia – Challenges | 6 |
6 | India | 7 |
7 | India – Challenges | 8 |
8 | Recommendations | 9 |
9 | Conclusion | 9 |
10 | Appendix A | 10 |

Introduction & Business Model

The Metro Group is one of German’s largest trade and retail group player which. It is divided into four major business units:
1. Real/Extra - an everyday retail supermarket
2. Kaufhof - an up market department store chain
3. Media Market/Saturn - ...view middle of the document...

ECO (2,500 to 4,000 Sq Metres) – This was the smallest of the three and was set up primarily in France, Japan and Italy.

The arrangement of food items present was on the basis of the size of the store. Another important aspect of their business was the Metro Buying Group. The Metro Buying Group (MGB) was responsible for negotiating with the suppliers on the large scale regarding the prices, Inventory and merchandising activities.

Metro C&C realized the importance of international expansion from the get go and after the initial expansion around Europe in the late 60’s and 70’s, they moved into farther territories in the 90’s (Appendix A – Figure 1 details the time of entry of Metro C&C around the globe). This forward thinking often gave them a first mover advantage.

Metro C&C emphasised on understanding the local cultures before entering a new geography. They conducted a multi-step feasibility analysis to identify potential candidates. This also allowed them to analyze the host country and evaluate their own strategy for entering the particular market. They were fast movers and quickly adapted to the local environment. The format of the feasibility study is detailed in Appendix A – Figure 2.

Metro’s international outlook was also reflected in their management staff. Majority of the Metro managers worked outside their home country and their composition of country management teams composed of various nationalities as clearly shown in Appendix A – Figure 3

Metro scored over the hypermarkets & other small food distributors as they offered an assortment of goods to the retailers at competitive prices. It also helped the small producers to manage their inventory in an organised manner and also makes the distribution channel more profitable.

From the 1950s to 1970s, Chinese government entities procured, distributed and sold all agricultural commodities. Even in the mid 1990s, most of China’s national and provincial level wholesalers were state owned enterprises. Retails outlets tended to procure most of the products locally due to China’s poor distribution system and a tendency for local governments to protect local producers and manufacturers.

Due to the large untapped market, Metro made its first foray into China in 1996 by setting up a store on the outskirts of Shanghai. They were required by the central government to take a local joint-venture partner to enter China and hence formed a 60/40 joint venture with Jinjiang group. Jinjiang group was a large state owned enterprise with a nationwide presence and good ties with government agencies. China’s accession to the WTO in 2001 required China to open its retail market to foreign investors and in December 2004, China allowed Metro to increase its ownership stake to 90% in the joint venture. However due to the close relationships Metro had built over the years, Metro chose to maintain its ties.

By 2005, China’s central government had...

Other Papers Like Metro Case Study

Perception of Current and Future Private Vehicle Owners to Road Congestion

2279 words - 10 pages CASE STUDY Perception of Current and Future Private Vehicle Owners to Road Congestion Organizational Communication 109.1 NICDAO, Gian Paolo G. PERCEPTION OF CURRENT AND FUTURE PRIVATE VEHICLE OWNERS TO ROAD CONGESTION INTRODUCTION Living 25 minutes away from school is a privilege. You find yourself thinking that you’ll make it to school, despite waking up an hour before your first class. You take your time in the shower, you

Case Study Week 6

607 words - 3 pages Case Study Week 6 FI590: Real Estate Finance Commercial Real Estate SWOT Analysis Location: Los Angeles, CA | 137 Virgil Ave, 90004 ($3.45M) | Strength: | * Very sophisticated, modern and upscale in appearance * Centrally located near shops, major streets and metro station * Gated, 30 space parking lot | | | Weakness: | * Glass façade will lead to higher costs in operation of AC due to poor heat

Co-Branding as a Tool for Customer Accquisition

3434 words - 14 pages the award-winning 'Kingfisher First' . Complimentary bonus of 10,000 King Miles, enough to get you a free domestic return ticket.  Complimentary access to exclusive Golf courses and airport lounges 12 CASE: Delhi Metro and Citibank Launch Co-Branded Transit Credit Card Citibank India and the Delhi Metro Rail Corporation (DMRC) today announced the launch of India’s first co-branded, ‘2-in-1’ transit credit card, the Delhi Metro Citibank


1629 words - 7 pages institutionalized in school year 1987-88. A new course offered in the four IETI schools is the two- year Electrical, Refrigeration and Airconditioning Technician course. Introduced in school year 1986-87, this is the Institute's answer to the call for a technician-level education in related fields of electricity and refrigeration. 1987, IETI opened its fifth school in Alabang, Muntinlupa, and Metro Manila. It is located on the second floor

Motivating Low-Wage Workers

1825 words - 8 pages concerned about the relationship between the employee satisfaction and motivation levels. Based on the case study, Mini Main Inc. provides workers with an attendance bonus for coming to work every day while Service Master provides a company-sponsored bank account and ATM cards for their employees. These two organizations are fulfilling the basic needs of their employees such as physiological needs and security needs that become a factor that

Reseach Paper

1576 words - 7 pages best for their future careers! br> And to all of you, Happy Holidays and best wishes for 2014! Newly Released Cases Case study "FX Risk Hedging at EADS" Co-authored with Professor Carl Kester, FIN, this case describes how, in 2008, EADS, the European aerospace group that owns Airbus, was faced with the decision of how best to hedge against the risks stemming from a large and growing mismatch between its dollar revenues and its euro

Problems of Buiyng Behavior in Davao City

593 words - 3 pages Chapter 1 THE PROBLEM AND ITS SETTING Background of the Study People are becoming more health conscious these days and many believe that bottled water is a healthier alternative to tap water (Petty, S. et. al. 2010). Water is a very important resource. Some people are now switching to bottled water because they feel it’s a healthier alternative to other beverages, as well as being a convenient source of water or tap water. People thought that

Totalfina Elf

1586 words - 7 pages . The retail and industrial business accounts for 85% of its entire earning and the 15% comes from lubricants and LPG. LPG market is one of the fastest growing businesses for TPI has 200 outlets in Metro Manila. Its LPG branded as Totalgaz. TPI is one of the biggest new players entered in the Philippines. B. Persons involved in the Case CEO of TotalFinaElf The Big 3 Competitor in the Philippines: Shell, Caltex, Petron The Government

Advance Database

708 words - 3 pages , you need to:  Gather more information on the user views of the FurniPointe database system.  Gather information on the system requirements of the FurniPointe database system. FurniPointe Case Study The first branch office of FurniPointe was opened in 2001 in Taguig City. Since then, the Company has grown steadily and now has acquired several offices in Metro Manila. However, the Company is becoming large that more and more administrative

Footwear Industry Research

4088 words - 17 pages country and 300 distributors, who form the backbone of the company. Apart from shoes, the organization also deals in school bags and solid tyres. Following are its various footwear brands: Metro Metro Shoes Ltd. Is one of the leading fashion footwear retailers in India. Metro Shoes outlets can be found in 72 locations in over 30 cities around the country. The company's retail offering comprises a range of footwear styles, including casual

Green Infrastructure

4153 words - 17 pages volunteer monitoring because of its many benefits. Water Efficiency - Efficient use of water helps reduce the demands on our water supplies, as well as on both drinking water and wastewater infrastructure, as using less water means moving and treating less water. Case Study: Smart Green Infrastructure in Tiger Range Countries: A Multi-Level Approach Executive Summary Tigers (Panthera tigris), are majestic symbols for many ancient and modern

Related Essays

Metro Case Study

2235 words - 9 pages 1. INTRODUCTION 1.1 Synopsis The following report examines the UK estate agency industry (residential sales at a local market level) between two time periods (the recent boom and subsequent recession that followed). Porters 5 Forces framework has been used to evaluate the changes in industry attractiveness. The analysis draws on industry specific information and makes reference to strategic management theory where appropriate. The discussion

Calcutta's Metro Essay

4081 words - 17 pages The Origin of the Vampire Vampires, are they a mythical creature that was created by superstition and folklore or did they begin from someone’s fantastic imagination based on a real live person? Or maybe it was created to explain a cluster of misunderstood medical conditions that began before the medical world had advanced science and knowledge on the body and its psyche. It’s a word that inspires awe, fear, and romanticism all at once

Rfid At Metro Group Essay

2052 words - 9 pages systems in retail supply chains can be realized and improved. In early 2004, METRO Group (Metro) announced that RFID technology would promote to 250 stores and 10 warehouses together with 100 suppliers. In 2005, after expanding rollout RFID in Metro, the benefits and problems of using RFID both emerged. In this article, the decision on whether Metro should implement RFID in its supply chain and which level (pallet and case level) is more suitable for

“The Different Factors That Affect Metro Manila’s Tourism Industry During 2010”

3574 words - 15 pages PAMANTASAN NG LUNGSOD NG MAYNILA (UNIVERSITY OF THE CITY OF MANILA) Intramuros, Manila COLLEGE OF LIBERAL ARTS English Department “The Different Factors That Affect Metro Manila’s Tourism Industry during 2010” This study is presented to Ms. Marylane Liporada for the partial fulfillment of the course requirement in ENG 102-English Proficiency Instruction II Submitted by: Cipriano, Arissa Benina O. Mercullo, Krizzamel Joy C