Business Strategy of Carrefour

Topics: Marketing, Carrefour, Hypermarket Pages: 23 (4970 words) Published: October 28, 2009


Content Page

1.0Executive Summary
The rapid growth of emerging market economies in Asia have seen a marked increase in disposable incomes leading to a considerable increase in confidence and consumption. The Asian Financial Crisis in 1997-98 that caused abrupt withdrawal of international capital proved to be a temporary setback and ground has been regained where it had been lost. Today, Asia shines in the global economic landscape and looks set to take over the U.S. as the new engine of growth in the global economy. In a growing economy, convenience matters and higher education as well as urbanization have lead Asians to embrace Western brands with gusto. The stores with the biggest advantage in terms of consumer preference are those with a wide variety of products to offer as was the case with hypermarkets, supermarkets and online retailers. Nevertheless, many countries in the region and elsewhere are experiencing severe economic difficulties as a consequence of the current turmoil in the world’s financial markets. The spillover effect of this turmoil has not spared the retail industry. A decline in foreign investment and a possible increase in unemployment or political turmoil in neighboring countries will all affect disposal incomes negatively among Asian consumers and certainly undermine retail sales negatively. However, times of great challenges are also times of great opportunities. In the midst of great uncertainty and increasing volatility in the overall business climate, Carrefour, the world’s second largest retailer aims to accelerate growth. Through a strategic lens, we seek to review and identify the various key areas that Carrefour need to focus so as to gain a stronger foothold in Asia. 1.1       The Research Background

The purpose of the assignment is to analyze the business environment of Carrefour and ensure strategic integration of its people and policies with the aim of bringing more clarity to the company’s marketing objectives and business strategies in Asia. As such, we conducted in-depth research to gather as much up-to-date data and information as possible to provide a solid and detailed analysis as well as comparison of Carrefour against the leading players in the retail industry in Asia. We also attempt to provide various recommendations on control and contingency plans to support the organization’s sustainable growth in Asia.

1.2The sources and methods of data collection
We conduct an in-depth research to gather as much up-to-date data and information as possible to provide a solid and detailed analysis of Carrefour as well as the leading players in the retail market in Asia. Our main sources include:

·          The financial, business and mainstream press ·          Company annual reports
·          Reports published by major manufacturers/distributors/retailers/suppliers ·         Online database
3. The Report Organization
This report has eight sections.
Section 1 provides an introduction of the report, followed by 6 other sections of discussions and visual models to analyze the various aspects which requires focus and the last section ends with our conclusion or recommendations.

2Overview Analysis
Fig.1 SWOT Analysis of Carrefour
|Strengths |Weakness | |- Strong Balance Sheet and liquidity |- House brands are not popular | |- World's second largest retailer and reputable |- Failed in competing with some of the local supermarkets in Asia, | |- Low price, fresh and quality products |- Revenue in Asia only contributes to 7% of the total consolidated net sales | |- Highly professional teams...
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