Auchan is a global hypermarket network, with the base in Lille, France.

Auchan is
controlled by the Mulliez family and is present in various countries around the world such as
France, Italy, Spain, Poland, Hungary, Russia, Morocco, Romania, Portugal, Luxembourg,
China and Taiwan. With over 350.000 employees, 880 hypermarkets and 860
supermarkets in more than 15 countries, annually Auchan have an income of about 51.7
billion euros according to their official website Auchan Retail. In 2016 the Fortune magazine
certified Auchan as the 35th largest global employer and 11th largest food retailer in the world.
SWOT analysis is an essential managerial method used to understand the strategic
position of an enterprise or organization. Mathur (2011) states that SWOT analysis is an
effective technique “to understand your strengths and weaknesses, to discover new
opportunities” and also “to manage and eliminate threats” (pg. 281). The SWOT analysis
starts with writing a list of current points: points of strength but also points of weakness,
opportunities, and threats about the state of an enterprise or organization.
Pricing and promotion policy are two of the most considerable strengths of the firm,
which defined the lasting relationship with customers. Practicing advantageous prices has
been the step towards attracting customers, and their promotion has been preferred. These
two strategies of the company are the focus of the whole business: focusing on the needs of
consumers. And also unbeatable promotions (eg: “Auchan - branded products, prices up to
30% lower, where you buy so cheap? - the world of baby: Come to Auchan, for two weeks
put your baby on the top!”).
Auchan's main weakness is the distribution and relationship with suppliers. In some
situations, suppliers break down the terms and conditions of shipment of the products, and
the company came up against to the inefficiency to reach the demand from customers. In a
long period of time, this may lead to the deficit of part of the customers and the overall
inability of the business.
The analysis of the company's economic environment highlights another distinguishable
aspect to the addition in the consumption of the population and the inclination to allocate the
largest part of the food and non-food incomes. This favorable occurrence, related to the
consumption of the population, represents an opportunity for the company, offering more
than 100,000 products including grocery, apparel, consumer electronics, fast food and travel
services, is the key to the company's success.
The principal factor of the threats is the inflation rate, which, although decreasing
compared to the period, will have a direct impact on the growth of prices for services. As a
result of inflation, the purchasing power of a unit of the currency falls. In the coming period,
due to rising inflation, Auchan will face difficulties in working if it does not take into account
this forecast.
 Finally, Auchan is a well-known global retailer with hundreds of stores across the
world. In order to improve performance, the company should devise few strategies to
address effectively the threats and weaknesses. Auchan responds to both internal and
external issues in a proactive and dynamic manner by using its strengths and reducing its
weaknesses. Through this Auchan its able to generate the strong growth it needs to retain a
strong identity in the market.

Reference LIST:

Auchan Holding (2017) Who are we. Available at: https://www.auchan-holding.com/en/who-

are-we (Accessed at 02/12/17).

Auchan Retail (2017) About us. Available at: https://www.auchan-retail.com/en/who-we-are

(Accessed at 01/12/17).

Fortune (20th July 2016) Auchan Holding Financials and New. Fortune.

Mathur U. C. (2011) Global Business Strategies: Text and cases I.K. International Pvt Ltd.