Advantages Of Carrefour
Internationalization process of the Carrefour in Russia
Internationalization process spurs the internal and external factors that influences Carrefour decision to initiate, develop and sustain international business activities. Two factors that led Carrefour to decide to invest in foreign market outside of France market: organisation factors and external factors. (Harrison et al, 2000) This is further supported by Dunning’s (2008) eclectic paradigm which examines how Carrefour integrated into the three components of OLI paradigm. It focuses on the ownership (O), location (L) and internalization (I) advantages of Carrefour as a MNCs.
Ownership advantages include mainly the intangible firm-specific assets like business knowledge and skills, intellectual property, management, internal and external relationships. Carrefour is expected to locate abroad as compared to export at a distance in order to maintain its control of its marketing strategy from local relationships. (Barney, 1991) After entering into different countries, Carrefour has the experienced in exploitation into other countries as it possessed more managerial, financial resources, have greater capacity and tend to related with lower levels of risk in international operations as compared to smaller firms. Also, through internationalization in such a big market like Russia, Carrefour would improve firm international appeal. The unique products or services that Carrefour always provides in their foreign market could
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