Case submission: Metro Cash and Carry

Submitted to

Prof. Diptiranjan Mahapatra

In partial fulfilment of the requirements for Strategic Management Course

Submitted by

By: Section A | Group 1

Anshika Rani 2023MBA010

Badigi Sai Sandeep 2023MBA014
Kanderi Durga Brahmini 2023MBA031
Kumud Acharya 2023MBA036
Kuraganti Sajani 2023MBA037
Raksha Singh 2023MBA052
Akash Shukla 2023MBA063
Souradip Das 2023MBA064
Swastika Upadhaya 2023MBA070
Swapnil Bhawale 2023MBA321

Submitted
On

19th March, 2024

A ) What have been MCC's key competitive advantages as it has moved into the emerging
market?

Expounding on the Metro Case and CAGE Framework

The Metro case study and CAGE framework can be used to further examine MCC’s benefits;

1. Firms’ Culture (C) First Mover Advantage:

Case Study Evidence: This might involve a discussion of how MCC managed to inform
businesses about the cash & carry model through its early entry into emerging markets such
as China; hence, creating brand loyalty as it became associated with MCC.

2. Solid Local Connections (E - Economic):

A Case Study Illustration: This case explores the extent to which MCC has worked with
neighboring firms on shipping or warehousing. They also have built relationships with local
authorities that allow them to bypass regulations and perhaps locate their stores conveniently.

3. Efficient Distribution System (G - Location):

Example of a Case Study: The case study illustrates how MCC was able to source products
effectively by using its extensive global network. Thus, they may have set up regional
distribution centers in emerging economies which reduced costs while providing competitive
pricing compared to scattered local suppliers.

4. Flexibility (A - Legal & Administrative):

For example, a case may look at how MCC changed its product offerings in India. They
could have therefore focused on private label brands or formed alliances with local
manufacturers so as to comply with regulations and meet regional tastes demands.

These factors, in conjunction with CAGE framework, helped MCC gain a foothold and
compete well in emerging markets

B) What role did institutional context play in challenging MCC's wholesaling format in
Russia, China, and India?

China:

 Joint Venture Requirement: Partnering with a local company like Jingjiang Group
might have limited MCC's control over operations and required adapting to their
partner's practices.
 Local Government Influence: Local governments might have had their own agendas
regarding foreign investment and competition, potentially impacting regulations or
licensing procedures.

Russia:

 Government Involvement: While the initial invitation came from the Moscow mayor,
navigating the broader government bureaucracy and regulations could have been
complex.
 Unfamiliarity with C&C format: Smaller businesses, the target clientele, might not
have been accustomed to the cash-and-carry model compared to traditional credit-
based systems.
India :
Complex Regulations: Restrictions on foreign direct investment in multi-brand retail, along
with the ban on selling agricultural products, a crucial category, significantly limited MCC's
offerings and customer base.
 Political Environment: Facing local protests and navigating a complex political
landscape could have created uncertainty and made it difficult to build trust with the
public.

C)What would you recommend to MCC's management towards strategic expansion and
public relations in India going forward?

Recommendations for MCC’s management regarding strategic expansion and public relations
in India:

1) Cultural, Administrative, Geographic, and Economic distances Framework

a) Cultural: To tailor its offerings to suit Indian customers a company must adopt their
tastes and preferences as well as other cultural differences.
b) Administrative: Effective navigation of the regulatory environment in India is possible
if one builds strong relationships with local authorities, and understands the legal
landscape in the country.
c) Economic: As such, focus must be put on price sensitivity and value propositions
since India has different income levels and is highly price-conscious.

d) Geographic: This requires optimizing supply chain logistics to handle India’s vast
geographical landscape coupled with diversity.

2) Address Institutional Voids: These may include gaps in market intermediaries, regulatory
systems, and contract-enforcing mechanisms. There are several alternatives available for
dealing with these voids including developing internal capabilities or partnerships like
creating distribution networks or credit facilities for small retailers.
3) Customization and Innovation: Innovate in product offerings and business models to
cater to the unique needs of Indian customers. Customise marketing campaigns to
reflect local languages, traditions, and festivals to connect with the customer base.

4) Local Partnerships: To get access to established networks through insights gained from
collaboration with local businesses. Alliance can also be done with e-commerce
platforms to enhance reach globally while adapting to dynamic digital shopping trends in
India

5) Strategic Expansion: This means prioritizing expansion into cities with fewer institutional
voids and a higher ease of doing business. Consideration should be given to tier 2 and
tier 3 cities while expanding because they can provide untapped potential without much
competition.