Carrefour in Korea failure
Carrefour Korea defeated There are several important reasons:
1. Carrefour has no choice and a "strategic partner" to go into Korea, the Korean market first in the grasp, especially in terms of consumer preferences to leave the "fatal wound";
2. In the operation and management, Carrefour in South Korea, but do not let go and use the Korean high posts.
3. Carrefour still tense labor relations in 2005, Carrefour because of dismissal would be improper when a Korean staff, led to a strike that lasted 3 weeks. June 2006, 5,600 employees of Carrefour Korea because of the treatment of the strike, resulting in Carrefour Korea on July 1 all of the temporary closure of its branch in Korea, Carrefour again as the labor relations focus of media attention.
4. Carrefour suppliers owed money, and require suppliers to bear the cost of unreasonable approach. South Korean law, carrying out large-scale sales promotion activities of enterprises, and not directly related to the cost of goods shall not require the supplier to bear. As the violation of this provision, from 1999 to 2001 to 3 years, Korea has three ZF penalty notice issued to the Carrefour, a fine of several hundred thousand dollars.
5. Carrefour Korea on the store location is consistent with the requirements of the public to consider small; their share of fresh food products in 30%, 10% less than local stores.
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