Central European Market - Final Report Essay Example | Topics and Well Written Essays - 3000 words

Central European Market - Final Report - Essay Example This paper examines the Auchan’s progress in the Russian market. The paper starts with background information and then analyzes the Russian market. The paper also discusses some of the challenges facing the company and suggests ways through which they can be addressed. Auchan Corporation is based in Croix, France and had presence in more than 12 countries. The company’s origin can be traced to 1961 when Gerard Mulliez opened the first store in Roubaix, France. Five years later, another store was opened in Roncq, Northern France. The company started expanding to other countries in 1981, when it established a subsidiary in Alcampo, Spain. In 1989, the company opened its first hypermarket in Italy. The company has also established foreign subsidiaries in China, Hungary and Russia. In order to increase its presence in the major economies, the company has also acquired other players in the retail industry. This mode of entry allows the company to expand much faster rather than using wholly owned enterprises. The company is one of the pioneers in the hypermarkets landscape in France and other major European countries. ). The consumers have extended values and intimacy to the corporation and the company has become more than a localized entity in R ussia. Auchan prefers organic growth and has 1,450 stores across the globe. Although the organization prefers organic growth, at times it expands to foreign markets through acquisitions. For instance, in 1996, the company acquired Docks de France and partnered with RT Mart in China. In Italy, Achuan acquired La Rinascente’s while in Italy it acquired GCI. Such acquisitions are very advantageous as they are less risky and are associated with positive outcomes such as increased market share, lower cost of operation, higher competitiveness, financial leverage and higher profitability. In most countries where it operates, the Achuan group pursues a strong