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Metro Cash & Carry

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1.What have been MCC's key competitive advantages as it has moved into emerging markets?
2.What role did institutional context play in challenging MCC's efforts to prove the value proposition of its unique wholesaling format and establish itself as an accepted corporate citizen in Russia, India and China?
3.How would you rethink MCC's approach to strategic expansion and public relations in India going forward?

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Metro Cash & Carry

  1. 1. METRO CASH & CARRY International Marketing
  2. 2. Questions 1. What have been MCC's key competitive advantages as it has moved into emerging markets? 2. What role did institutional context play in challenging MCC's efforts to prove the value proposition of its unique wholesaling format and establish itself as an accepted corporate citizen in Russia, India and China? 3. How would you rethink MCC's approach to strategic expansion and public relations in India going forward?
  3. 3. Question 1. • World leading C&C wholesaler (544 Stores) • Very efficient supply chain • Hub and Spoke geostrategic approach • Adjustments to local market without changing the stores format • Tree store formats and open 16 hours a day • Wide range of international products • Targeting professional customers • Almost no competition
  4. 4. Question 2. 1. China • Joint Venture with Jingjiang Group • Local government & retail companies tried to slow down the expansion • Bring harmony to the local market • Governmental control & authorisations
  5. 5. Question 2. 2. Russia • Invitation from Moscow’s mayor • Government saw a opportunity to built a distribution chain with METRO C&C
  6. 6. Question 2. 3. India • Complex political situation • Licence • Strong governmental control • Product sales restrictions • Restrictions with local farmers • The government protect the local market • Public relations
  7. 7. Question 3. 1. Strategic expansion • Smaller stores in big cities • Look for cities with a good infrastructure • Search for better intermediaries • Resorts to corruption
  8. 8. Question 3. 2. Public relations • Advert in the local language • Work with the local-language press • Reassure the local traders • Resorts to corruption
  9. 9. The five contexts framework
  10. 10. Thank you! Alain Perrotin

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