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• 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).
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
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.
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).
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.
• 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.
Metro cash & carry

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Metro cash & carry

  • 1.
  • 2.
  • 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.