3. • Business Environment key dimension
grouped in PEST.
• Metro C&C is an Internationally self-
service wholesale retailer.
• Its B-B concept.
• Based on self-service & bulk buying.
• Core customer
groups(hotels, restaurant, caterers).
4. Market Entry Evaluation
process
Country Screening
Feasibility study process.
Regional Segmentation.
Knock-out criteria .
1. 2.Pre- 3.Full-
Desk feasibilit Feasibility
Country ranking. research y study study
Management (if (if (If
Decision positive positive positive
Competition
result) result) result)
Final country ranking
New country opening
5. Model & Concept of Metro C & C
• Sold food and nonfood goods for immediate
cash sales
• Clients transport their purchases themselves.
Metro stores open for 16hrs.
• Issue a card to customer or an authorized
person to buy.
• Metro C & C was the 1 foreign C& C
wholeseller to enter market.
• Approaches followed.
6. Metro C & C China Russia India
• JV may be able to • No competition . • No internal
penetrate into the • Local business are competition.
market. open in regular • Highway
• WTO allowed Metro working hours. development will
C&C up to 90%. • Government wants connect
• Poor distribution to modernize the M,K,C(imagination).
system in the country. cities. • 2nd world populous
country.
• Real estate price • Forecast of • Political
doubles decreasing Instability.
• No Distinction population. • Lack of cold
between Wholesale • Accession to the storage &
Business & WTO result in highway still not
Hypermarkets. comp. finished.
• Competition for • Location for Central • Difference in
Locations(Carrefour hub. policies.
& Wallmart). • Opposition of
Metro C&C (BJP).
7. Political Economic
• Long procedures to make a govt. • Consumer spending Inc.(34% from
decision. 2001-05)
• Multi parties in diff. state. • FDI Inc.(just 1% GDP of China 2005)
• Party opposition (BJP) • Expected entrance of Wallmart &
Tesco
Social Technological
• Cultural differences. • Lack of cold storage.
• Small Wholesalers do not allow • Delay’s in Infrastructure
Foreign Comp. Development.
• Literacy rate is low as compared to
Russia & China.
8. • Concept of B-B has proven to be beneficial to the
local economy of the countries(R,C,I).
• Key strength of Metro C & C.
Wholesale concept.
Extended business hours.
Upto 90% of products are sourced locally(reduce
wastage e.g -tomatoes)
Provide traning programs.