Carrefour in Russia What Went Wrong Essay

3093 Words Dec 30th, 2012 13 Pages
Introduction
The first part of this assignment based around the case study of Carrefour in Russia is to analyse the macro environment in Russia at the time of the case. Opportunities and challenges associated with that environment will also be considered. The best way to understand the macro environment in Russia is to carry out a PEST analysis. PEST stands for the political, economic, social and technological environments. This type of analysis can be considered an external appraisal of the business. The aim of this framework is to supply a reasonable overview of the different macro-environmental factors that affect a business’s strategy.
Political
To begin with I will consider the political environment in Russia which affects
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This would have been at a cost of $1.25 billion.
Another factor could be that Carrefour had set up representative offices in Russia in the mid 1990’s, securing deals on two prime locations for setting up shop. However due to the financial crisis in Russia at the time, they were forced to pull out, possibly without a re-entry strategy in mid for later years. Analysts would also say that Carrefour did not give the market enough time when considering their position after four months. A retail analyst even stated that “they were rather late in coming” and stated that it would have been more effective to purchase a chain with already developed logistics and distribution networks, this would have had cost advantages and technological advantages.
Competitive Rivalry:
Going in as what would be perceived as a major retailer; Carrefour would have up to seven other competitors within their industry with a turnover of over $1billion.Carrefour promised to be different in that they would
#follow their client based principles in providing quality products at a low price and great value, Carrefour, like many of its competitors offered the same products, however little things such as the variety of bread that they had in their shops was seen as good by the public as they had no variety in other retailers such as Okay or Auchan stores. Customer loyalty would have been firmly in

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