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.
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Case Details: |
Price: |
| Case Code |
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BSTR241 |
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra
ThemesInternational Business Strategy |
| Case Length |
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19 Pages |
| Period |
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1995-2006 |
| Organization |
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Carrefour |
| Pub Date |
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2006 |
| Teaching Note |
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Not Available |
| Countries
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South Korea |
| Industry |
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Retail |
Abstract:
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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.
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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:
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
Carrefour Bids Adieu to South Korea
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