Caroll wants to diversify its activities by investing in China. However, is it relevant? Even if China is one of the most dynamic and competitive market in the world, does Caroll have all the resources to invest in this “new land of opportunities”? Indeed, Chinese market is very attractive. In spite of a slowdown of the Chinese growth (the International Fund Monetary has predicted a growth of 9.5% for the current year), its economical health is making the occidental countries dream. Thus, investing in China can be a positive boost for a firm. A proof of that is the successful setting up of Carrefour in China. Indeed, Carrefour realized a turnover of €101 billions in 2010. 10,89% of this turnover was made in China1 and increased of 24,1% comparing the past year.
Moreover, it permits to the French group to compensate for the losses in Europe. Caroll should take advantages of an implementation in China. Even if Caroll is operating in another sector, the chances of success seem to be high. However, how can Caroll can successfully invest the Chinese market? We will respond to this question step by step, using the nine-question method,developed by Robert Fonteijn (professor at the ISEG).In a first part, we will respond to the four first questions in order to see what the different forces particular to Caroll are.
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