Improving the competitiveness of Metro Cash & Carry Ltd. on the Russian market of goods and services
Sinitcyna, Elena (2016)
Seinäjoen ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2016053110923
https://urn.fi/URN:NBN:fi:amk-2016053110923
Tiivistelmä
Metro is a large international trading company with rich experience in doing business and a reputation of a reliable supplier of goods and services. The main purpose of this thesis was to make valuable recommendations for the company for preserving and improving its competitiveness on the volatile Russian market.
The theoretical part discusses such terms as strategy, value chain, and competitive advantage, and focuses on the basic types of strategy, value creating activities and approaches to gain competitive advantage. Finally, the methodology of SWOT and financial ratio analyses are studied.
In the empirical part, the author conducted a SWOT-analysis, analyzed the company’s financial position, and determined the level of customers’ satisfaction. For drafting the SWOT matrix, such data collection techniques as content analysis and unstructured observation were used. Financial data were gathered using structured statistical observation. In the determination of customer’ satisfaction, a questionnaire including both open-ended and close-ended questions was sent by email to the customers of a single store and the obtained findings were supplemented by quantitative data collected from the chain stores in Russia.
The study revealed that Metro is a profitable company; however, it has a significant risk of liquidity and solvency due to the large amount of inventories, uncollected account receivables, high costs, and strong dependence on borrowed funds. Problems related to operating activity were also identified among which the most significant are: high prices, lack of goods on shelves and information about it, lack of the diversity and quality of promo offers. Provided recommendations aimed at solving these problems as they prevent the company from remaining a strong competitive player in the target market.
The theoretical part discusses such terms as strategy, value chain, and competitive advantage, and focuses on the basic types of strategy, value creating activities and approaches to gain competitive advantage. Finally, the methodology of SWOT and financial ratio analyses are studied.
In the empirical part, the author conducted a SWOT-analysis, analyzed the company’s financial position, and determined the level of customers’ satisfaction. For drafting the SWOT matrix, such data collection techniques as content analysis and unstructured observation were used. Financial data were gathered using structured statistical observation. In the determination of customer’ satisfaction, a questionnaire including both open-ended and close-ended questions was sent by email to the customers of a single store and the obtained findings were supplemented by quantitative data collected from the chain stores in Russia.
The study revealed that Metro is a profitable company; however, it has a significant risk of liquidity and solvency due to the large amount of inventories, uncollected account receivables, high costs, and strong dependence on borrowed funds. Problems related to operating activity were also identified among which the most significant are: high prices, lack of goods on shelves and information about it, lack of the diversity and quality of promo offers. Provided recommendations aimed at solving these problems as they prevent the company from remaining a strong competitive player in the target market.