Migros (Switzerland)
Migros is a grocery retailer in Switzerland, organized as a co-op with over one million Swiss households as members. Migros also operates a travel agency, gas stations, a book and record club, and other business. In the last decade, Migros has tried to expand into neighboring countries, but the venture in Austria failed and the presence in France and Germany remained small. The case asks why Migros has not been more successful abroad, especially in Austria, given the seemingly quite similar cultural environment and language (German). A key issue is the Migros brand strategy, both in the domestic market and abroad. Cultural questions are important since behavior and food preferences vary significantly. The case also raises the question what a successful enterprise can do when it seemingly cannot grow.