Carrefour's Exit from South Korea


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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 : BSTR241 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

International Business Strategy
Case Length : 19 Pages
Period : 1995-2006
Organization : Carrefour
Pub Date : 2006
Teaching Note : Not Available
Countries : South Korea
Industry : Retail

Abstract:

The case describes Carrefour's entry and expansion strategies into the South Korean market and the reasons that led to its exit from the country. The company failed to localize its stores and the products sold according to the needs and preferences of Korean consumers.

Carrefour chose to venture into the Korean market on its own without a local partner, due to which it failed to understand the market and was unable to select good locations for its stores. The company employed most of the top management personnel from France and this was not viewed favorably by the local employees, and Carrefour too often faced problems from local labor unions.

After a decade of unsustainable operations and cut-throat competition, Carrefour finally announced the sale of its South Korean business in April 2006.

Issues:

Understand why Carrefour failed to sustain its operations in South Korea

Study and analyze the entry and expansion strategies of Carrefour in South Korea

Contents:

  Page No.
Carrefour Bids Adieu to South Korea 1
Background Note 2
Going Global 3
Carrefour in South Korea 5
What went Wrong? 7
The Road Ahead 10
Exhibits 12

Keywords:

Carrefour, Retail Industry in South Korea, Economies of Scale, Globalization, Localization, International Business, International Expansion, Entry Strategies, Expansion Strategies, Global Supply Chain Management, Store Formats, E.Land, Hypermarkets, Joint Venture, Store Layout and Ambience, South Korean Economy

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