Evaluate the strategy of operating in China through several joint venture partners.

International Business

Evaluate the strategy of operating in China through several joint venture partners.

CASE STUDY (20 Marks)

The case discusses the entry and expansion strategies of French retailer Carrefour, in the Chinese market. Carrefour began its Chinese operations by forming joint ventures in the year 1995. The company entered into direct deals with the local governments of various provinces in China to get the approval to set up its stores. By the early 2000s, Carrefour had emerged as the largest foreign retailer in China. The company considered China to consist of several small markets instead of one large market, and accordingly employed strategies for operating in the country. Most of the products sold in Carrefour stores were procured from China. The store formats, location, and the products sold were customized according to the local preferences, and the store managers were empowered to run the stores according to the local requirements. Carrefour faced many challenges in China. The company faced stiff competition in China especially after WalMart’s acquisition of TrustMart.

Answer the following question.

 

Q1. Analyze the entry and expansion strategies of Carrefour in China.

 

Q2. Evaluate the strategy of operating in China through several joint venture partners.

Q3. Explain how Carrefour brought changes in its store formats and operational methods to cater to the needs and preferences of consumers in China.

 

Evaluate the strategy of operating in China through several joint venture partners.

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