METRO CASE AND CARRY

Metro cash & carry is an international self service wholesaler. It

operates across Europe and in five Asian countries: China, India,
Japan, Pakistan and Vietnam. It is the largest sales division of the
German trade and retail giant metro AG.

The first major expansion drive METRO/MAKRO Cash & Carry

entered the market in nine Western European countries by
1972. In the nineties, METRO Cash & Carry expanded its
activities to Portugal, Turkey, and Morocco and to Eastern
Europe.

INTRODUCTION
The unique wholesale business-to-business model of METRO
Cash & Carry is focused only towards professional customers
such as hotels, restaurant and caterers as well as small and mid-
sized retailers

METRO Cash & Carry is a reliable partner for more than 20

million professional customers worldwide. It gives them a clear
competitive advantage in their own markets.
 MISSION

"METRO is a cash & carry VISION

wholesaler for business
and professionals. METRO
MISSION AND provides quality products
VISION and business solutions at
the lowest possible prices
STATEMENT "METRO will dominate
the cash & carry
wholesale segment
globally, through our
unique business formula
which improves the
competitiveness of our
customers all over the
world.
 PESTEL MODEL

POLOTICAL ECONOMIC SOCIAL

TECHNOLOGICAL ECOLOGICAL LEGAL

 POLITICAL AND ECONOMIC

A high level of taxation would A low minimum wage would

The risk of military invasion by
demotivate companies like Metro mean higher profits and, thus,
POLITICAL hostile countries may cause
Cash and Carry from maximizing higher chances of survival for
divestment from ventures.
their profits. Metro Cash and Carry

The interest rates in the country

would affect how much However efficiently the financial
The rate of GDP growth in the
individuals are willing to borrow markets operate also impact how
country will affect how fast Metro
ECONOMIC and invest. Higher rates would well Metro Cash and Carry can
Cash and Carry is expected to
result in greater investments that raise capital at a fair price, keeping
grow in the near future.
would mean more growth for in mind the demand and supply.
Metro Cash and Carry
 SOCIAL

To some extent, the differences in educational background between the marketers and the
target market may make it difficult to relate to and draw in the target market effectively. Metro
Cash and Carry should be very careful not to lose the connection to the target market's
interests and priorities.

Metro Cash and Carry needs to be fully aware of what level of health standards, reactions to
SOCIAL AND harassment claims and importance of environmental protection prevail in the industry as a
whole, and thus are expected from any company as they are seen as the norm.
TECHNOLOGIC AL

TECHNOLOGICAL

The recent technological developments and breakthroughs made by competitors, as mentioned

above. If Metro Cash and Carry encounters a new technology that is gaining popularity in the
industry in question, it is important to monitor the level of popularity and how quickly it is
growing and disrupting its competitors’ revenues. This would translate to the level of urgency
required to adequately respond to the innovation, either by matching the technology or finding
an innovative alternative.
 ENVIRONMENTAL AND LEGAL
• ENVIRONMENTAL
• Climate change would also render some products useless. For example, in the case of
textiles, in countries where the winter has become very mild due to Global Warming, warm
winter clothes have much less of a market.
• Those companies that produce extremely large amounts of waste may be required by law to
manage their environmental habits. This may include pollution fines and quotas, which
may place a financial strain on Metro Cash and Carry
• If Metro Cash and Carry should (knowingly or unknowingly) contribute to the further
endangerment of an already endangered species may face not only the consequences from
the law but also face a backlash from the general public who may then boycott Metro Cash
and Carry in retaliation.
• LEGAL
• Discrimination laws are placed by the government to protect the employees and ensure that
everyone in Metro Cash and Carry is treated fairly and given the same opportunities,
regardless of gender, age, disability, ethnicity, religion or sexual orientation.
• Health and safety laws were created after witnessing the horrible conditions that employees
were forced to work in during and directly after the industrial revolution. Implementing the
proper regulations may be expensive, but Metro Cash and Carry has to engage in it, not
only due to the law but also out of Metro Cash and Carry's personal feeling of ethical and
social responsibility to other human beings.
 QUESTION 1

• What are the primary reasons for

the market entry in the Ukraine?
How do you underline the
international expansion strategy of
Metro Cash & Carry (MCC)?
 ANSWER 1

Financial segments have Gross domestic product

Higher GDP leads to
most impacted on the per capita gives a point of
higher income and thus
benefit and by and large view on the monetary
higher the sales for
intrigue of METRO Cash variables that may impact
METRO Cash Carry
Carry Entering the METRO Cash Carry
Entering Ukraine.
Ukraine. Entering the Ukraine.
• The organization has a global distribution framework with specialists and contracts in
nations over the world. This helps the organization in ensuring that its items are broadly
accessible and effectively open to all shoppers.

• The experience of extension to different nations legitimately just as in a roundabout way

has enabled the organization to gain exposure and involvement in worldwide business,
culture and exchanges.
 SWOT ANALYSIS

Efficiently using the

Low prices and high Strong cash and carry Friendly and co-
STRENGTHS- place and excellent
quality. business background operative staff
layout.

No transportation
Limit of 3 persons on * Membership or Restriction of
service for customers
WEAKNESS- a single membership subscription fees for shopping minimum Rs
to carry their
card cards 2000.
products far away
OPPORTUNITIES-

Growing market of cash and carry

* Contracting with major hotels and restaurants

* Expansion in major cities.

THREATS-

Instability of the country

* Poor law and order situation of Pakistan

*Up coming stores like Walmart and many others.

 Threat of New Entrants

High entry barriers

For METRO Cash Carry Entering the Ukraine, especially while new contestants are
differentiating from various markets into the main business, they will almost leverage
PORTER’S FIVE existing talents and money streams to shake up the opposition.

FORCES Threat of Substitute Products or Services

There are constantly various choices or substitutes for different items that
lead an industry .

These substitutes may be direct or indirect – the immediate substitutes are

of a similar category product, created by various players; indirect
substitutes are the ones from various product categories that can swap the
item for METRO Cash Carry Entering the Ukraine.
 METRO Cash Carry
Entering the Ukraine Various product offerings
Bargaining Power of
won't experience by buyers additionally
Buyers
exchanging costs for increase buyer power.
exchanging purchasers.

Additionally, to the
Suppliers can integrate
purchasers, the quality of
Bargaining Power of forward into the basic
the supplies and the raw
Suppliers leadership and business
materials is of most
elements themselves too.
extreme significance.

However, in an industry
with a high number of
suppliers, METRO Cash
Carry Entering the
Ukraine can change to
various suppliers
whenever without
encountering any
expenses of the business.
Competitive Rivalry

The high fixed cost and the high bargaining

power of the buyers, which can prompt the
bringing down of the costs from
manufactures add to the highly competitive
nature of the industry.

Producers have started to utilize brand

management techniques and contemporary
merchandising by propelling strong brands,
label designs and marketing campaigns to
become more identifiable to the public.
TYPE OF FORCES LEVEL OF FORCES

Threat of New Entrants Low to Moderate

Threat of Substitute Products or Services High

Bargaining Power of Buyers Moderate to High

Bargaining Power of Suppliers Moderate

Competitive Rivalry High

 • Given the information in the case, suggest a
roll-out strategy for MCC in the Ukraine for
QUESTION two years after opening the first store in Kiev.
2 How many stores should be built each year
and where? How can the customer base be
developed? Explain reasons for your strategy?
 After opening the initial store in Kiev, the roll-out
methodology ought to be to contract
representatives and train them, publicize the
showcasing division, connect with potential clients
and build the stores.

• Each year just 1 store ought to be constructed in

light of the fact that the laws in Ukraine precluded
land proprietorship by outsiders/foreigners, in this
ANSWER 2 way countless grants must be gotten so a store
could work legitimately.

• Moreover, the connected coordination’s issues

were another explanation behind oneself connected
limitation of one store for each year.
• MADE BY –
• MANAN NANDA
• SAMRIDDHI ARORA
• SIDDHARTH GULATI
• CHIRAG SINGH YADAVA