Carrefour’s Misadventure in Russia

Question 1. According to Thierry Garnier Member of the Carrefour Group Executive Committee “We are confident that retail business in Russia has considerable long-term potential and the market is strategically important for the development of our company.” In light of this statement what were the factors that led to Carrefour’s sudden exit from the Russian retail market? 2. According to Jamie-Vazquez analyst at JP Morgan Chase & Company in London “Stores in emerging markets are the only ones doing well and offering good growth prospects so selling them makes no sense other than making short-term financial gain.” Do you agree with this statement? Take a stand and justify it. 3. Critically analyze the Russian retail market in light of Porter’s five forces model. Do you think the market is lucrative enough to attract more foreign players? Explain.

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