The Carrefour and Tesco Swap Deal


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR285 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

International Business | Globalization Business
Case Length : 14 Pages
Period : 1989-2005
Pub Date : 2008
Teaching Note : Not Available
Organization : Carrefour, Tesco
Industry : Retail
Countries : Taiwan, Czech Republic, Slovakia

Abstract:

The case discusses stores swap between two of the top retailers in the world, Tesco and Carrefour, in the Czech Republic, Slovakia, and Taiwan. In Taiwan, Carrefour was among the leading retailers. But in the Czech Republic and Slovakia, Carrefour was not able to gain market share. Tesco, on the other hand, was in a strong position in the Czech Republic and Slovakia, but its Taiwanese operations were not doing well. The case details the swap agreement between the two companies, according to which Tesco agreed to take over 11 of Carrefour's stores in the Czech Republic and Slovakia, and Carrefour agreed to take over six stores of Tesco in Taiwan.

The case also discusses the problems Tesco faced with the Slovakian part of the deal and concludes with a discussion on the future prospects of Tesco in the Czech Republic and that of Carrefour in Taiwan.

Issues:

» Study the international expansion strategies of Carrefour and Tesco.

» Understand the reasons behind Tesco and Carrefour deciding to swap some of their stores.

» Analyze the reasons for Carrefour's success in Taiwan and Tesco's success in the Czech Republic and Slovakia

Contents:

  Page No.
Tesco and Carrefour Swap Stores 1
Background Note 2
Carrefour's Success and Tesco's Woes in Taiwan 4
Czech Republic & Slovakia: Carrefour Falters, Tesco Thrives 6
Tesco and Carrefour Announce Swap 8
After The Swap 9
Exhibits 11

Keywords:

Carrefour, Tesco, Taiwan, Czech Republic, Slovakia, Retail Industry, Hypermarkets, Stores Swap, Local partners, Antimonopoly Office

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