The Carrefour and Tesco Swap Deal

Case Code: BSTR285
Case Length: 14 Pages
Period: 1989-2005
Pub Date: 2008
Teaching Note: Not Available

Price: Rs.300
Organization: Carrefour, Tesco
Industry: Retail
Countries: Taiwan, Czech Republic, Slovakia
Themes: International Business, Globalization Business

Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case discusses stores swap between two of the top retailers in the world, Tesco and Carrefour, in the Czech Republic, Slovakia, and Taiwan. In Taiwan, Carrefour was among the leading retailers. But in the Czech Republic and Slovakia, Carrefour was not able to gain market share. Tesco, on the other hand, was in a strong position in the Czech Republic and Slovakia, but its Taiwanese operations were not doing well. The case details the swap agreement between the two companies, according to which Tesco agreed to take over 11 of Carrefour's stores in the Czech Republic and Slovakia, and Carrefour agreed to take over six stores of Tesco in Taiwan.

The case also discusses the problems Tesco faced with the Slovakian part of the deal and concludes with a discussion on the future prospects of Tesco in the Czech Republic and that of Carrefour in Taiwan.

Issues

The case is structured to achieve the following teaching objectives

Study the international expansion strategies of Carrefour and Tesco
Understand the reasons behind Tesco and Carrefour deciding to swap some of their stores
Analyze the reasons for Carrefour's success in Taiwan and Tesco's success in the Czech Republic and Slovakia

Tesco and Carrefour Swap Stores

Background Note

Carrefour's Success and Tesco's Woes in Taiwan

Czech Republic & Slovakia: Carrefour Falters, Tesco Thrives

Tesco and Carrefour Announce Swap

After The Swap

Exhibits