Discuss the international expansion strategies of Carrefour and Tesco.

International Business

 

Discuss the international expansion strategies of Carrefour and Tesco.

Case Studies

CASE STUDY (20 Marks)

The case discusses the entry of France based retailer Carrefour SA (Carrefour) into Greece and its subsequent exit. Carrefour entered Greece in 1991 by investing in the ‘Continent’ hypermarket in the country. In 1993, it entered the food retail segment in Greece by acquiring food supermarket chains owned by the local retailer Marinopoulos. With the acquisition of Promodès in 1999, Carrefour became the second largest retailer in the world in terms of store count, next only to the US based  WalMart. The acquisition of Promodès brought supermarkets, discount retailers, and corner shops like Shopi, Dia, Score, Pryca, Promocash, Puntocash, Champion and 8 à Huit into Carrefour’s fold.

 

Answer the following question.

 

Q1. Give an overview of the case.

 

CASE STUDY (20 Marks)

The case discusses stores swap between two of the top retailers in the world, Tesco and Carrefour, in the Czech Republic, Slovakia, and Taiwan. In Taiwan, Carrefour was among the leading retailers. But in the Czech Republic and Slovakia, Carrefour was not able to gain market share. Tesco, on the other hand, was in a strong position in the Czech Republic and Slovakia, but its Taiwanese operations were not doing well. Both the retailers’ made a swap agreement between the two companies, after a lot of deliberations, according to which Tesco agreed to take over 11 of Carrefour’s stores in the Czech Republic and Slovakia, and Carrefour agreed to take over six stores of Tesco in Taiwan. Thus both the retailers succeeded in their mission with bright future prospects of Tesco in the Czech Republic and that of Carrefour in Taiwan.

Answer the following question.

 

Q1. Discuss the international expansion strategies of Carrefour and Tesco.

Q2. Explain the reasons behind Tesco and Carrefour deciding to swap some of their stores.

 

CASE STUDY (20 Marks)

The case focuses on Germany based hard discounter Aldi’s unique business practices and its operations in Australia. Aldi, one of the oldest retailers in Germany, was considered to be one of the pioneers of the hard discounter concept. It entered Australia in 2001. Aldi followed the strategy it adopted for its German operations in Australia with minimal modifications. The firm adopted the same operational strategy in Australia and was successful in attracting price sensitive Australian consumers despite strong local competition. Aldi’s had expansion plans in Australia and succeeded by identifying & solving the challenges the company faced from the local retailers and the competition it can expect from other European and American retailers which have announced their plans to enter the market.

 

Answer the following question.

 

Q1. Discuss the retail management strategies adopted by Aldi in Australia.

CASE STUDY (20 Marks)

An excellent international case study comes from bike manufacturer Triumph, which lost steam in its British home base three decades ago, but found new life by heading overseas. In 2010, Triumph sold just 7,562 bikes in the UK, but 50,000 worldwide, indicating that an international interest paid off for the company. Triumph’s famous factory in Warwickshire closed up shop in 1983, but the Indian factory remained, and these days, the motorcycles have become the country’s Harley Davidson. The company

struggles to meet demand in India, with a six month waiting list and a new factory being built. India’s middle class has embraced the vehicle as an affordable commodity, even giving them as dowries in weddings.

 

Answer the following question.

 

Q1. Give an overview of the case.

 

Q2. How did the bike manufacturer Triumph survive despite lost steam in his home town?

 

Discuss the international expansion strategies of Carrefour and Tesco.

 

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