Chapter 5. Recommendations

During our research we marked out several mistakes committed by Carrefour. They may seem not so significant individually but all together they turned out to be crucial and lead to failure.

1. Preliminary market research

Although Carrefour claims to plan penetrating Russian market well in advance it is obvious that some of their assumptions, on which their strategy was based, were wrong. It concerns sales predictions and consumer preferences. If there were no breakdown on any stage of a research probably company would choose other time to enter. Maybe it wouldn’t wail for so long to leave its worldwide competitors far ahead.

2. Lack of ability to manage local business environment

Business environment in Russia is really special and unfriendly to strangers but if you decide to enter Russian market you have to be ready to deal with it. It is not a secret that a level of bureaucracy and corruption is extremely high, so acting in such environment requires additional resources. Our decision to all these mistakes is strategic partnership, namely joint venture. Standalone entries are done by companies which perceive themselves to have adequate capability in taking capital risk and are ready to gain the knowledge associated with the new markets over time. Companies that enter new markets on their own have to realize and accept the risk in not depending on others to gain experience about the new markets. In our opinion attempt to enter such a high-risky market as Russia without help of local partners was not a right choice. Establishing a joint venture would kill two birds with one stone. Firstly, local partner would provide Carrefour with sustainable information so that they can fully meet local customer needs. It would help to work out a proper marketing campaign without waste of resources. Secondly, joint venture reduces legislative-related risks. It is much easier to establish a joint venture than to build your own facilities from scratch. Joint ventures receive benefits from state. Also a local partner is much more experienced in coping with bureaucracy and red tape.

1 "Annual Report 2011" (in French) (PDF). Carrefour Group. Retrieved 21 May 2011.

2 free products – libre meaning free in the sense of liberty as opposed to gratis

3 http://www.carrefour.com/cdc/group/our-group/

4 Consumer goods sector in Russia: Winds of change. – Режимдоступа: http://www.thomaswhite.com/explore-the-world/bric-spotlight/2011/russia-consumer-goods-sector.aspx, свободный.– Загл. сэкрана.

5Russian Retail Market Continues Expansion. –http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Moscow%20ATO_Russian%20Federation_9-2-2011.pdf

6 Carrefour пробует вернуться в Россию, «Глобус Гурмэ» отправляется за рубеж

Читать полностью: http://www.rbcdaily.ru/2011/09/15/market/562949981482215http://www.rbcdaily.ru/2011/09/15/market/562949981482215

7Burt, S., Dawson, J. & Sparks, L. (2003). International Retail Divestment: Reviews, Case Studies and (E)merging Agenda. – Режимдоступа: https://dspace.stir.ac.uk/bitstream/1893/686/1/ERR%20FINAL%20International%20Retail%20Divestment%20Agenda.pdf, свободный.– Загл. сэкрана.

8Salamarsh M., Kramer, A.E. French Retailer to Close Its Russia Stores. – Global business. – The New York Times. – October 16, 2009. – Режимдоступа: http://www.nytimes.com/2009/10/17/business/global/17carrefour.html?_r=0, свободный.– Загл. Сэкрана.

9Same sourse

10Antonova, M. Carrefour Opens First Russian Store. – The Moscow Times. – 19 June 2009. – Режимдоступа: http://pennybank.online.fr/spip.php?article125, свободный.– Загл с экрана.

11 http://www.carrefour.com/cdc/finance/sales-and-result..

12 Shopping for the future: Russian retail market survey. – Режим доступа: http://www.pwc.com/gx/en/retail-consumer/pdf/pwc-retail-survey_eng.pdf, свободный. Загл. с экрана.

13Shopping for the future: Russian retail market survey. – Режим доступа: http://www.pwc.com/gx/en/retail-consumer/pdf/pwc-retail-survey_eng.pdf, свободный. Загл. с экрана.

14 Russia retail sales / Trading economics. – Режим доступа: http://www.tradingeconomics.com/russia/retail-sales-annual, свободный. – Загл. с экрана.

15 Russia consimer spendings / Trading economicshttp. – Режим доступа: www.tradingeconomics.com/russia/consumer-spending, свободный. – Загл. с экрана

16 Consumer goods sector in Russia: Winds of changeю – Режим доступа: http://www.thomaswhite.com/explore-the-world/bric-spotlight/2011/russia-consumer-goods-sector.aspx, свободный. – Загл. с экрана

17 Russian Retail Market Continues Expansion, Olga Kolchevnikova, 2011 http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Moscow%20ATO_Russian%20Federation_9-2-2011.pdf

18 Shopping for the future: Russian retail market survey. – Режим доступа: http://www.pwc.com/gx/en/retail-consumer/pdf/pwc-retail-survey_eng.pdf, свободный. Загл. с экрана.

19Russian Retail Market Continues Expansion. – http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Moscow%20ATO_Russian%20Federation_9-2-2011.pdf

20 Consumer goods sector in Russia: Winds of change – Режим доступа: http://www.thomaswhite.com/explore-the-world/bric-spotlight/2011/russia-consumer-goods-sector.aspx, свободный. – Загл. с экрана

21 Shopping for the future: Russian retail market survey. – Режим доступа: http://www.pwc.com/gx/en/retail-consumer/pdf/pwc-retail-survey_eng.pdf, свободный. Загл. с экрана.

22

23Consumer goods sector in Russia: Winds of change – Режим доступа: http://www.thomaswhite.com/explore-the-world/bric-spotlight/2011/russia-consumer-goods-sector.aspx, свободный. – Загл. с экрана http://www.thomaswhite.com/explore-the-world/bric-spotlight/2011/russia-consumer-goods-sector.aspx

24 http://www.russiaretail.com/49662/Carrefour-finally-enters-Russia.shtml

25 http://www.russiaretail.com/75947/Carrefour-pursues-expansion-in-Russia.shtml

26 http://www.rncos.com/Report/IM219.htm

27 French ^Hypermarket Chain Carrefour Leaves Russian Market," http://en.rian.ru, October 15, 2009.

28 Carrefour, China Opening of 100^th Carrefour hypermarket, 2011, http://www.carrefour.com/cdc/group/currentnews/china-opening-of-the-100th-carrefour-hypermarket-.html (June 2011)

29 Carrefour 2009 Annual Report, 2009,

http://www.carrefour.com/docroot/groupe/C4com/Pieces_jointes/Assemblee_generale/RFI_VGB_BAT_def_ve.pdf

30 Carrefour 2009 Annual Report, 2009, http://www.carrefour.com/cdc/finance/sales-and-results/our-sales/2009-sales-folder/2nd-quarter-2009.html

31 Carrefour 2009 Annual Report, 2009, http://www.carrefour.com/cdc/finance/sales-and-results/our-sales/2009-sales-folder/2009-full-year-sales.html

32 http://query.nytimes.com/gst/fullpage.html?res=9805E2D6143BF934A25753C1A96F9C8B63