Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 7

Carrefour Asia

Case Study: Exploring External Environment: Competition &


Opportunities

About Carrefour

Over the past 40 years, the Carrefour group has grown to


become one of the worlds leading distribution groups. The
worlds second-largest retailer and the largest in Europe, the
group currently operates four main grocery store formats:
hypermarkets, supermarkets, hard discount and convenience
stores. The Carrefour group currently has over 15,000 stores,
either company-operated or franchises.
Hypermarkets: the appeal of the new
Supermarkets under the Carrefour banner
Hard Discount: low prices year-round
Convenience: always attuned to customer needs
Cash & carry: proximity and accessibility for catering
professionals
E-commerce

Carrefour strategy

The Carrefour group has one simple


ambition:
making Carrefour the preferred retailer
wherever it operates

Case Facts

2003 Carrefour 2nd largest mass retailer globally


Approach

One stop shop


Low pricing
Self-service
Quality products
Freshness
Free parking

Analyzes local conditions before entering a market

Demographics
Income
Transportation
Urbanization
Real estate
Government policies

Analysis

Case Observations External Environment


Markets

Taiwan

Scanning

Yes

Monitoring
Forecasting

South
Korea

Thailand

Indonesia

Malaysia

Singapore

Hong
Kong

China

Yes
Yes

Yes

Yes

Yes

Japan
Yes

Yes

Yes

Yes

Yes

Yes

General Environment

Assessing
Demographic

Yes

Yes

Yes

Economic

Yes

Yes

Yes

Political/Legal

Yes

Socio-cultural

Yes

Yes

No

Yes

Yes

Yes

Yes

No

Yes

Yes

Technological
Global

Results

Yes

Yes
31 stores
& Net
sales
1,322 mn.
Euros

27 stores
& Net
sales
1,149 mn.
Euros

19 stores
& Net
sales 392
mn. Euros

11 stores
& Net
sales 286
mn. Euros

7 stores &
Net sales
226 mn.
Euros

2 stores &
Net sales
83 mn.
Euros

Yes
Exited in
2000
unable to
fight
competition
from local
retailers

Aim to
open 70
hypermar
kets

The above table indicates the analysis undertaken by the company and the factors managed by
them to make an entry into the market

Net sales
225 mn.
Euros

Fighting Competition

Rivalry

Threat: Wal-marts target acquisition needs to fight the industry leaders hostile takeover bids

Action taken : Profitability, Cash surplus

Improvement in operating mechanisms ensure a significant direct bottom line growth

Better sourcing strategies specific to geographies of operations

Investment in technology to increase operational efficiency

New Entrants

Threat: Growth of hard discounters (Aldi)

Action taken : Expansion of own discount chain

Suppliers

Massive purchasing power ensured low pricing

Substitute

Threats: Local retailers, existing players in market

Actions taken:

Aligned product & service lines to the customer expectations & ensured better product & price

Included country specific products & services

Promotions & schemes to customers on a regular basis

Works closely with the governments, states agencies, NGO towards CSR. Local employment opportunities thus
ensuring support for all the endeavors

Presented / Submitted by

Ajit Raghavan
Nimish Bhatnagar
Saurabh Gupta
Uday Kamath
Umesh Giriyian
Ravikumar Jankiraman

You might also like