Carefour Missadventure in Russia Essay - 4589 Words

Master of Business Administration Strategic Management Carrefour Misadventure in Russia Supervised By Submitted By John Kalmus Muhammad Omair STU 22782 Submitted To IBAM Word Count 3898 Submission Date 22 January 2011 Carrefour strategy is comprised of following components Organic, Sustainable and Profitable growth Fast return on capital employed Market Leadership through Acquisition Carrefour started business in 1963 by introducing the idea of hyper market by providing thousands of products under one roof. Soon after the success of hyper market Carrefour started targeting the customers with discounted stores. Carrefour is now world Europe largest and world second largest. Carrefour Major Merger and Acquisitions†¦show more content†¦Wal-Mart is also doing strategic alliance to get hold of Chinese market. Even Wal-Mart was planning to acquire kopeyka in Russia for its entry to Russian market however it entry was stopped by X5 market leader of Russian retail by purchasing the company in $1.6 billion. We can say that acquisition is good strategy for Carrefour in countries like China, Russia, India, or Brazil which have many cities with population in millions or in market where it s difficul t to get enter. However Carrefour was the first international retailer in China so it focused on organic growth and kept it at 20% for 2008 but keeping in mind the small acquisition as well. So we can say that Carrefour was quite successful in it strategy of organic growth and acquisition. Wherever it has acquired companies it has achieved its strategy of organic, sustainable growth, with fast return on investment and market leadership. However there are many countries where Carrefour failed like Russia, South Korea, Japan, Slovakia, and Czech Republic, Malaysia, Singapore etc There were many other factors which were cause of its exit from those countries. Still Carrefour has sold it operations in that country to companies like Tesco, E-Led. We can assume that Carrefour could have it strategy to test new markets get