CMTP Presentationon

Metro Cash & Carry

Presented By:-

Ancy JohnAkanksha JhawarArchana PandeyBhanuPrakashGovind dhakadShweta

Out Line

Our Analysis.

PEST Analysis of India

SWOT Analysis of Metro C & C

Market Evaluation Process

Business Environmet & Metro C & C

INTRODUCTION Business Environment & Metro C & C• Business Environment key dimension

grouped in PEST.• Metro C&C is an Internationally self-

service wholesale retailer.• Its B-B concept.• Based on self-service & bulk buying.• Core customer groups(hotels, restaurant,

caterers).

Market Entry Evaluation process

Country Screening

Regional Segmentation.

Knock-out criteria .

Country ranking.

Competition

Final country ranking

Management Decision

Feasibility study process.

1.Desk research

(if positive result)

2.Pre-feasibility study

(if positive result)

3.Full-Feasibility study

(If positive result)

New country opening

Model & Concept of Metro C & C• Sold food and nonfood goods for immediate

cash sales• Clients transport their purchases themselves.

Metro stores open for 16hrs.• Issue a card to customer or an authorized

person to buy.• Metro C & C was the 1 foreign C& C wholeseller

to enter market.• Approaches followed.

Opportunities

• JV may be able to penetrate into the market.• WTO allowed MetroC&C up to 90%.• Poor distribution system in the country.

• No competition .• Local business are open in regular working hours.• Government wants to modernize the cities.

• No internal competition.• Highway development will connect M,K,C(imagination).• 2nd world populous country.

Threats

• Real estate price doubles

• No Distinction between Wholesale Business & Hypermarkets.

• Competition for Locations(Carrefour & Wallmart).

• Forecast of decreasing population.

• Accession to the WTO result in comp.

• Location for Central hub.

• Political Instability.

• Lack of cold storage & highway still not finished.

• Difference in policies.

• Opposition of Metro C&C (BJP).

Metro C & C China Russia India

PEST ANALYSIS IN INDIA

Political

• Long procedures to make a govt. decision.

• Multi parties in diff. state.• Party opposition (BJP)

Economic

• Consumer spending Inc.(34% from 2001-05)

• FDI Inc.(just 1% GDP of China 2005)• Expected entrance of Wallmart &

Tesco

Social

• Cultural differences.• Small Wholesalers do not allow

Foreign Comp.• Literacy rate is low as compared to

Russia & China.

Technological

• Lack of cold storage.• Delay’s in Infrastructure

Development.

Our Analysis

• Concept of B-B has proven to be beneficial to the local economy of the countries(R,C,I).

• Key strength of Metro C & C. Wholesale concept.Extended business hours.Upto 90% of products are sourced locally(reduce

wastage e.g -tomatoes)Provide traning programs.

THANK YOU