Carrefour's Misadventure in Russia Case Study Example | Topics and Well Written Essays - 2000 words

Carrefours Misadventure in Russia - Case Study ExampleThis research will begin with the statement that with a move to the globalized era, happy businesses and large corporations are continuously looking for the opportunities of international expansion. The last trends show that emerging economies, especially BRIC (Brazil, Russia, India, and China) become more popular destinations for business development purposes. patch there are many examples of successful penetration and business establishment on these markets, there are also examples of failures and misadventures. Entry strategy of the France-based retail big Carrefour to the Russian market has been unsuccessful, and the companys sudden exit has raised many different opinions in this respect. Below there is provided an overview of potential factors that great power have its impact on the companys failure continued with the further analysis of the Russian food retail market based on the Porters five forces model. While there wa s not clearly defined the reason of why Carrefour has made a decision to exit suddenly the Russian market, there were mentioned some obvious factors that might have contributed to this decision. These factors include social and cultural factors legal factors late entry decision absence of sufficient organic-growth prospects and scholarship opportunities, and political factors. Such social and cultural factors that have been identified as the potential barriers to the Carrefours expansion in Russia included bureaucracy, corruption, red tape.