Industry RetailFounded 1964; Metro AG formed in 1996Headquarter Düsseldorf, GermanyArea served Europe, Asia, AfricaKey people Eckhard Cordes (CEO and Chairman of the executive board), Jürgen

Kluge (Chairman of the supervisory board), Olaf Koch(CFO)

Services Supermarkets, hypermarkets, consumer electronics and appliance retail, department stores

Revenue €31.6 billion (2012)Employees 283,280 (average, 2010)Divisions Metro Cash and Carry, Real, Media Market, Saturn, Galeria Kaufhof

Website www.metrogroup.dePresence in India (2003) Bengaluru, Hyderabad, Mumbai, Punjab, MP, UP, Rajasthan, Delhi, Kolkata,

Gujarat

Cash And Carry"From professionals for professionals,"

• As of 2007, METRO Cash & Carry has operations in the 29 countries. • The group includes:

• METRO / Makro Cash & Carry, the world's market leader in cash and carry

• Real Hypermarkets and Extra supermarkets

• Media Market and Satum, Europe’s leader in consumer electronic retailing

• Galeria Kaufhof, the system leader in the department store business.

operations internationally

THE METRO Cash & Carry MODEL

• Wholesale business: Business customers and institution such as Hotels, Restaurants, Bars, Cafes, General or specialized food and non food retailer.• Valid business registration.• Format of stores:

• Classic (10,000 to 16,000 sqm)• Junior (7,000 to 9,000 sqm )• ECO (2,500 to 4,000 sqm )

• Procurement: Metro group buying (MGB), group’s Central purchasing entity.• Source 90% of stock locally .• Develop an efficient supply chain.• Cold-storage facility.• Based on self-service & bulk buying

Cont…

• 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 1st foreign C & C wholesaler to enter market

Source: Company Documents.

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 openingSource: Company Documents.

Political• Long procedures to make a governmental decision• Political instability• Distinction between government and state

legislation• Multiparty in different states destroys the

coordination

Economic• Consumer Spending increases• FDI Increase • Strong Economic Growth • Increased Land Prices• Prices are 30-45% below the government prices

Social• Local Traders and associations are opposing

Metro C&C• Urban Immigration and Rising Living Standards• Fear among local community resulted in protests

Technological• No cold storage facilities• Delays in infrastructure development Environment• The inefficiency of the Mandis brought out 40%

of waste

PEST(India)

1. Best Prices2. It's your Warehouse3. Everything under One roof4. Extended business hours5. Quality guaranteed6. Free parking7. After sales Service8. Offers at your fingertips9. Clear and easy invoice10. Great value for money

10 Advantages Here are the Top 10 reasons to partner with METRO

Recommendations• Technological development in various areas are required for Indian operations (Cold storage, logistics etc.)

• An effective forward and backward integration is must for the company

• Indianization is key to success