Carrefour in Korea

The second 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 its top management personnel from France, which was not viewed favorably by local employees, so too often Carrefour 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. The case is structured to enable students to: (1) understand why successful multinational giants like Nokia, Google, Nestle and Carrefour have failed to make an impact in the South Korean market; (2) study and analyse the entry and expansion strategies of Carrefour in South Korea; (3) study why Carrefour performed below expectations in South Korea; and (4) analyze why Carrefour was unable to attract enough customers in South Korea, in spite of implementing some of its international best practices in the country. The case is aimed at MBA students and is intended to be part of the international business curriculum.

(1) understand why successful multinational giants like Nokia, Google, Nestle and Carrefour have failed to make an impact in the South Korean market; (2) study and analyse the entry and expansion strategies of Carrefour in South Korea; (3) study why Carrefour performed below expectations in South Korea; and (4) analyze why Carrefour was unable to attract enough customers in South Korea, in spite of implementing some of its international best practices in the country. The case is aimed at MBA students and is intended to be part of the international