Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)

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Under the Depressed Economic Environment and Covid-19, Is METRO AG Still Worth Being Invested in?

Authors
Mengqing Ran1, *
1School of International Business and Management, Sichuan International Studies University, Chongqing, 400030, China
*Corresponding author. Email: 20201936040079@stu.sisu.edu.cn
Corresponding Author
Mengqing Ran
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-098-5_184How to use a DOI?
Keywords
Retail industry; Porter’s Five Forces; value chain; financial analysis
Abstract

The paper applies several business models such as Porter’s Five Forces, Value Chain, and BCG’s Matrix to analyze the overall performance of METRO AG under the condition of Covid-19 to solve the problems of whether METRO is still worthy of investing. This paper also applies financial analysis with an appropriate calculation of ratios and comparison of its competitor, Costco. Under Covid-19 and the depressed economic environment, METRO AG’s net profit is decreasing and its solvency is also weaker than Costco. However, METRO AG has an efficient value creation process, especially in the inbound logistics and procurement area. METRO AG also set up its team for technology development and takes other effective measures to optimize its operation to enhance its overall competitiveness. In conclusion, although METRO AG suffers some difficulties due to the epidemic and the overall economic condition, it is now taking measures to overcome these problems. Therefore, METRO AG still has great investment potential.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
78-94-6463-098-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-098-5_184How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Mengqing Ran
PY  - 2022
DA  - 2022/12/27
TI  - Under the Depressed Economic Environment and Covid-19, Is METRO AG Still Worth Being Invested in?
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 1630
EP  - 1639
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_184
DO  - 10.2991/978-94-6463-098-5_184
ID  - Ran2022
ER  -