Case Study: Carrefour's Exit From The Russian Market
866 Words4 Pages
Carrefour’s is the second largest retailer in the world. Carrefour’s has decided to enter in to Russian market in 2007.During the 2007 Carrefour’s looking for suitable location to start stores so that they can expand the their business in the Russian market. Finally they opened stores a hypermarket in the year June 2009.The main purpose of the Carrefour’s activities is to sale of the food stuff like oil, Biscuits, milk, pasta and self-service grocery at discount price, clothing, sporting equipment, electronics good and auto accessories in the Russian market.
To expand any retail business in anywhere in the country whether it’s Russian market or any market, it require considerable long term potential and strategically strong view is very important for the development of the company. In this point of the Carrefour’s decided to exit from the Russian market. There are so many reasons behind the exit from the Russian market.
The main reason for exist from the Russian market is that it was very expensive and too hard for the Carrefour’s to set up the business operation in Russian market. Because at that time so many competitors were available in the Russian market so it was difficult for the Carrefour’s to expand the business in the market. Carrefour’s had no patience to sustain in the new market. They wanted to expand their business as much as fastest in the market and they want to earn good returns in the starting stage. It’s not easy for any business to expand