Metro in India: Can It Carry Forward With Its Cash & Carry Model?


Code :BSM0065

Year :

Industry : Retailing

Region : India

Teaching Note:Available

Structured Assignment :Available

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Metro: Does Experience Matter? Metro AG was founded as Metro SB-Grossmarkte (Metro SB) in 1964 in Mulheim, Germany, by Otto Beisheim (Otto), a German entrepreneur. By 1968, backed by Franz Haniel & Cie. and the Schmidt-Ruthenbeck family, (both German wholesalers), Metro SB extended its business beyond Germany. Soon, partnering with Steenkolen Handelsvereeniging NV (SHV), a Dutch company, Metro SB established a new company, MakroCash & Carry and started its operations in Netherlands...

Customer is the King Nonetheless, even in middle 90's, India had remained restrictive on involving foreign traders in domestic trading. Metro Cash & Carry approached the Government of India and was successful in convincing about the benefits that the small retailers and economy could derive from its wholesale business. In 2000, Metro Cash & Carry received an approval to start its business activities in India from Foreign Investment Promotion Board (FIPB). In 2002, the approval was amended to allow Business-to-Business (B2B) sales...

Expectations and Realities The potential market of Indian retail sector has been in the limelight of global retailers for quite a long time. According to the AT Kearney report on global retail destinations, India is one of the most attractive destinations, with the growing middle class population and positive demographics. However, the 2008 global financial crisis had affected most of the industries in India including retail.Organised retail penetration, which was expected to touch 16% by 2012 from the 5.6% in 2007, is likely to trace down to 10.4%...

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