Background After building a successful global operation including stores in Russia and China, Metro Cash & Carry (MCC) are struggling to transplant their business model in India. This demonstrates the importance of local political backing in emerging markets and how a successful model (e.g. a political welcome and direct supply from farm to store) wasn’t followed. Despite sales growth, expansion in India has been disappointing predominantly because of restrictions in buying directly from farmers and poor PR. Analysis of MCC competitive advantage Metro’s success has been built upon its home-grown business model, backed by having an ability to be first to market. Utilising detailed market research to identify the needs of its customers …show more content…
These small businesses didn’t target cafes and restaurants but predominantly retails stores. By invitation of Moscow’s forward thinking Mayor, who had witnessed Metro’s businesses in other countries, MCC was able to be first to market. The mayor believed that Metro would improve Moscow’s distribution system, create flexible taxation and reduce black market sales. The company was seen as a saviour and with full political backing went about developing an infrastructure which modernised the city and cleaned up the supply chain. Such was the political backing that the opening of an MCC store became an occasion for celebration with the status of a grand opening. MCC transformed Moscow’s distribution system and the company gained a reputation for being pioneering. Local people were happy as they had choice, quality, cleanliness and good prices. Local producers were happy as infrastructure and distribution were improved, wastage was reduced and investment was on a large scale. Government was happy as the city was being modernised and taxes being collected through appropriate channels and black market trading was being challenged. MCC will remain ahead of the competition by defining stores, lines and products specifically by demographic helping to maintain their strong market share. MCC accepts that there is strong competition in Russia but they are confident of keeping
How these factors enabled MMBC to create such a strong brand; and why, despite its strong brand, MMBC was experiencing a decline in 2005. I
* For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
We know that technology changes too fast and this would make biometrics be easier, faster, and more accurate.
This is an individual assignment as a single report in two parts. Candidates are encouraged
STUDENT HANDOUT ASSESSMENT PART ONE MARKETING RESEARCH REPORT Unit of Competency: BSBMKG501B - Identify and Evaluate Marketing Opportunities /35 C or NYC
Metro Toronto is a large graphics and printing company in Toronto. The company had ten sites with about 250 employees providing services that range from individuals to medium-sized companies. Their current performance management system was not meeting its expectations at the beginning of 2011.
Second-tier domestic producers (12.5 % market share in ECR, Case study - exhibit 3), medium-size competitors and regional producers, category to which MMBC belongs. These companies try to follow the major players in their product offering and marketing strategies, but fall short on the financial and marketing capabilities. They constitute MMBC’s main competition.
• India's $250 billion retail business is the eighth largest in the world and has the potential to grow 7 per cent by 2011. [McKinsey Report] For a company already dominating the world markets, this is an un-passable opportunity.
EU LAW (COMPETITION): The recent expansion of the European Union can effect Waitrose e.g. Entry of new competitors or products, which they may offer at cheap price (the minimum wage is some EU countries have low wage compare to U.K)
International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.
In the past few years, Indian Retail sector has seen tremendous growth in the organized segment. Major domestic players have stepped into the retail arena with long term, ambitious plans to expand their business across verticals, cities and formats.
Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.
I would like to propose a marketing plan for opening a coffee shop in the city of Moscow. Over the past two or three years, a coffee shop in Russia managed to grow in a socio-cultural phenomenon: at once there was like a house of cards, the Soviet culture of consumption of coffee.
Starbucks’ retail entry model in the United States does not have the same strategy as their international model. In the states Starbucks holds great control as a corporation, but in international territory, country partnerships, cultural, government laws and politics play a very important role in Starbucks’ entry strategy. Starbucks has set it sights globally since the coffee market has come close to saturation in the U.S. which will give them the opportunity to continue to expand without fierce competition. Starbucks has looked to countries like India and other emerging markets with great growth potential to set down new roots. Starbucks recognizes India as a great choice to expand business internationally but also recognizes the complexity in the same market after several attempts to enter without success.
Hill, Charles W. L. and Gareth R. Jones. Strategic Management: An Integrated Approach. Mason, OH: South-Western Cengage Learning.