• 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 processCountry Screening Feasibility study process.Regional Segmentation.Knock-out criteria . 1. 2.Pre- 3.Full- Desk feasibilit FeasibilityCountry 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.