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Metro Cash N Carry PDF
Metro Cash N Carry PDF
Metro Cash N Carry PDF
Ecosystem Aware
N.Viswanadham
Global Supply Chain Management
retail sector in India
l
grown from a
level of US $
201 Billion to a
market size of
US $ 425
Billion in 2010.
N.Viswanadham
Food and groceries account for the
Global Supply Chain Management largest share in Retail
l In 2011, ‘Food and
Grocery’ accounted for
Ecosystem Aware
N.Viswanadham
Ecosystem Aware
Global Supply Chain Management
N.Viswanadham
Products in Indian Retail
Stakeholders of Retail Chains
Global Supply Chain Management
l Mandis, commission agents, farmers, mills –
Groceries
l Apparel : manufacturers, distributors, brands
Ecosystem Aware
N.Viswanadham
Central
/State
Poli<cal
&
Social
Business
APMC
act,
PDS
Foreign
Retailers
Governments
Ac<vists,
Organiza<ons
Ins<tu<ons
Agriculture
Mandis
Kirana
Shops,
Push
carts
Resources
Retail
Stores
Ecosystem
in
Transporta<on
and
ICT
Internet
Retail
Home
delivery
India
Mall
Space
Wholesalers
Financial
Resources
Training
Ins<tutes
Forward-‐Backward
Warehousing,
Cold
Chain
Supply
Chains
Food
&
Grocery
Utensils,
Books
Furniture
Pharmacy
and
Hygiene
Apparel
Ecosystem Aware
Global Supply Chain Management
N.Viswanadham
Metro Cash Carry in India
Metro Cash and Carry Model
Global Supply Chain Management
l Traditional wholesaling: Highly specialized assortment of
merchandise delivered to customers on credit
l Metro C &C is a self-service wholesaler: Sells a wide
Ecosystem Aware
N.Viswanadham
Cash & Carry Whole Sale In India
Global Supply Chain Management
N.Viswanadham
Where Can MCC Create Value?
Global Supply Chain Management
l Serves as a B2B intermediary reducing waste
and introducing quality
Ecosystem Aware
N.Viswanadham
Global Supply Chain Management Organized Supply Chain Player: Initial Impact
N.Viswanadham
Ecosystem Aware
Global Supply Chain Management
N.Viswanadh
Bangalore Wholesalers Protest against MCC
Global Supply Chain Management
l Oct20, 2003 Chairman and CEO, Metro AG,
opened of Metro Cash & Carry Distribution centre
Ecosystem Aware
in Bangalore
l Bangalore Traders Action Committee and
Swadeshi Jagran Manch activists protesting
against opening of Metro centre at APMC Yard
l The Bangalore Retailers’ Combine released half-
page ads in local newspapers, comparing Metro to a
modern-day East India Company.
l To most Indians, the imagery evoked was that of
two centuries of exploitation.
N.Viswanadham
Global Supply Chain Management
Ecosystem Aware
N.Viswanadham
Metro in China and Russia
Global Supply Chain Management Action Russia China
Speed of entry 22 stores in first five 8 stores in first five years, then 17
years in the next few years thereafter.
Slower ramp u p because lacked a
patron like the Mayor of Moscow in
Ecosystem Aware
Russia
Joint venture Not present. Perhaps not Retained JV with SOE Jinjiang
needed with local Group even after rules for requiring
government patron it were relaxed
Local politics Mayor is the only Tension between central and local
authority. He is government authority, but more
supportive for Metro’s authority (and clearer power
help in cleaning up the structure) than in India
local black market
Local Fragmented “Fog of competitors”
competition
Management Expatriate management Expatriate management
team
N.Viswanadham
Ecosystem Aware
Global Supply Chain Management
N.Viswanadham
Entry Into India
Metro’s Entry Strategy In India
Global Supply Chain Management
l Metro C&C entered the Indian wholesale market
by opening two stores in Bangalore (Year 2003)
l Opened a new store in Hyderabad in 2006 (no
Ecosystem Aware
N.Viswanadham
Global Supply Chain Management
Entry Strategy
N.Viswanadham
Risks faced by MCC
Global Supply Chain Management Analysis of Metro’s approach
Decision Action , Logic & Comments
Bangalore. High tech city with large expatriate and
Ecosystem Aware
N.Viswanadham
Global Supply Chain Management
Analysis of Metro’s approach
Decision Action & Logic Comments
Product Limited by APMC Act precluding MCC from sourcing
Ecosystem Aware
Store Two large state-of-the art stores with superb cold chain,
operations similar to its stores in highly developed markets, have
been made thinking that APMC act will soon go.
Government Mostly in Delhi; and none in Bangalore. MCC misread
Relations potential local political opposition
Public Market education to diffuse opposition and media
Relations relations were missing.
N.Viswanadham
Global Supply Chain Management MCC: Growth Plans did not materialize
N.Viswanadham
Global Supply Chain Management Risks faced by MCC
l MCC underestimated the delay and risk involved
with bureaucratic procedures.
Ecosystem Aware
N.Viswanadham
Global Supply Chain Management MCC: Managing growth under Constraints
N.Viswanadham
Global Supply Chain Management
Ecosystem Aware
N.Viswanadham