Metro Cash and Carry
METRO Cash and Carry
Executive Summary:
Metro Group, Germany’s largest trade and retail group, is a major international player with sales of over €55.7 billion by 2005 and continued plans for substantial international expansion. Metro group is organized into four business units:
• Real/Extra: Everyday retail hypermarket
• Kaufhof: Upmarket department store chain
• Media Market/Saturn: Leading Electronics Retail Chain
• Metro Cash and Carry
‘Metro Cash & Carry’ stands for one of the great success stories in modern commerce. In 2005, Metro Cash and Carry has sales worth of €28 billion, with 100,000 employees and 544 stores worldwide. They contribute around 50.4% of group’s revenues. The wholesale business-to-business model of Metro C&C is focuses towards business and professional customers such as hotels, restaurant, caterers and small and mid-sized retailers. Metro C&C offers this target group a greater efficiency by offering a one-stop solution for their purchases, helping them improve their assortment, providing high quality products at reasonable and transparent prices and offering a consistent supply source.
This case study discusses about the expansion of Metro Cash and Carry, which has options of expanding in the new untapped markets or existing markets. Beyond the benefits Cash & Carry offers its own customers, it also brings “positive externalities” to countries where it operates by a modern distribution chain with improved quality and the safety of a supply chain. When they got their market saturated in Germany, they expanded their operations into other countries in Europe. Later, they moved to Russia, China and India.
Support from local markets in Russia and China, made the penetration for Metro C&C easier in comparison to the complex political structure in the Indian market, which posed a great challenge for them.
Metro C&C – Business Model and Growth in Germany:
• Metro C&C uses its B2B model to sell wide range of high quality
Executive Summary:
Metro Group, Germany’s largest trade and retail group, is a major international player with sales of over €55.7 billion by 2005 and continued plans for substantial international expansion. Metro group is organized into four business units:
• Real/Extra: Everyday retail hypermarket
• Kaufhof: Upmarket department store chain
• Media Market/Saturn: Leading Electronics Retail Chain
• Metro Cash and Carry
‘Metro Cash & Carry’ stands for one of the great success stories in modern commerce. In 2005, Metro Cash and Carry has sales worth of €28 billion, with 100,000 employees and 544 stores worldwide. They contribute around 50.4% of group’s revenues. The wholesale business-to-business model of Metro C&C is focuses towards business and professional customers such as hotels, restaurant, caterers and small and mid-sized retailers. Metro C&C offers this target group a greater efficiency by offering a one-stop solution for their purchases, helping them improve their assortment, providing high quality products at reasonable and transparent prices and offering a consistent supply source.
This case study discusses about the expansion of Metro Cash and Carry, which has options of expanding in the new untapped markets or existing markets. Beyond the benefits Cash & Carry offers its own customers, it also brings “positive externalities” to countries where it operates by a modern distribution chain with improved quality and the safety of a supply chain. When they got their market saturated in Germany, they expanded their operations into other countries in Europe. Later, they moved to Russia, China and India.
Support from local markets in Russia and China, made the penetration for Metro C&C easier in comparison to the complex political structure in the Indian market, which posed a great challenge for them.
Metro C&C – Business Model and Growth in Germany:
• Metro C&C uses its B2B model to sell wide range of high quality