Abstract

The case describes Carrefour's entry and expansion strategies into the South Korean market and the reasons that led to its exit from the country. The company failed to localize its stores and the products sold according to the needs and preferences of Korean consumers. Carrefour chose to venture into the Korean market on its own without a local partner, due to which it failed to understand the market and was unable to select good locations for its stores. The company employed most of the top management personnel from France and this was not viewed favorably by the local employees, and Carrefour too often faced problems from local labor unions. After a decade of unsustainable operations and cut-throat competition, Carrefour finally announced the sale of its South Korean business in April 2006.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand why Carrefour failed to sustain its operations in South Korea
• Study and analyze the entry and expansion strategies of Carrefour in South Korea.

Keywords

Carrefour, Retail Industry in South Korea, Economies of Scale, Globalization, Localization, International Business, International Expansion, Entry Strategies, Expansion Strategies, Global Supply Chain Management, Store Formats, E.Land, Hypermarkets, Joint Venture, Store Layout and Ambience, South Korean Economy