Carrefour's Strategy

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The strategy of Carrefour
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Summary
I-Introduction3
I-Historic4
II-Characteristics of supermarket distribution5
a)Porter’s five5
b)PESTEL7
c)SWOT9
III-Strategies in France10
IV-International strategy of Carrefour11
V-The new markets and the future12
VI-Suggested strategies13
VII-Conclusion14
VIII-Bibliography15

I- Introduction

Carrefour was the first supermarket created in France and also in the world. For more than 50 years in the French landscape, it belongs to our everyday life. Since several years, we can notice than Carrefour has a real strategy of expansion, in buying other retail’s brand. What is the current and future strategy of Carrefour in France and in the world? We will explain thanks to all the tools we have (SWOT, PESTEL...) how Carrefour is working and ask this question. And we will also give suggestions for their future strategies thanks to our analysis of the market and what Carrefour already did.

I- Historic
The company has been created in 1959 by Marcel Fournier (owner of a big shop in Annecy) and the brothers Jacques and Denis Defforey (owners of shops in Ain). In 1960, they opened their first shop in 1960. They named it “Carrefour” because of the name they were set up. This new concept of consumption was very successful because it appeared when the mass consumption also appeared. In 1961, they took the name of Carrefour for the company. It was a success so in 1963, they opened a big supermarket of 1000m2 near Annecy. In 1969, they opened their first supermarket abroad, in Belgium. Consumers liked this new way of consumption. The company has been developed thanks to this success and the system of supplier’s payment. It became a gig company and in June 1970, Carrefour entered in the French stock exchange. In 1973, Carrefour opened its first supermarket in Spain called Pryca and they also created Shopi a smaller shop in cities. In France some groups of consumers were against the development of those supermarkets, they prefer smaller proximity shops. That is why in 1973, a law (the Royer’s law) was voted to slow down the opening of new supermarkets. In 1975, Carrefour opened its first supermarket in Brazil. In 1976, they launched “Free product” (Products without any brand), it was the same quality but less expensive, those products finally took the Carrefour brand in 1985. In 1979, they developed discount supermarkets with the creation of Ed. In 1981, Carrefour launched his own credit card: Pass Card, a card used only to pay in Carrefour’s shops. In 1982, they opened their first supermarket in Argentina. In 1984, they launched Carrefour Insurance, in order to diversify their activities. In 1988, they took the very famous slogan:”Avec Carrefour je positive”. This slogan expresses the good environment of Carrefour supermarkets where everything is good and beautiful. In 1989, the opened their first supermarket in Asia in Taiwan. In 1991, they launched “Carrefour Vacances” to diversify their services. In 1992, they created the “Filières Qualité Carrefour” to certify the quality and the origin of their products. In 1993, they opened their first supermarkets in Italy and Turkey. During the nineties, they opened supermarkets in Mexico, Malaysia, China, Thailand, and Poland… In 1999, they merged with Promodès and they become the second supermarkets’ group in the world and the first one in Europe. In 2000, they launched employees’ shareholding; some employees are owner of some shares. It was a success. They sold their part in Picard Surgelés in 2001. In 2005, they adopted a new way of governance. In 2007, they launched Carrefour Home where consumers can easily find everything for their houses. During all this decade, Carrefour opened new shops in many countries but in the same time, they closed some unprofitable shops in Japan for example. Today Carrefour is the second supermarket group in the world...
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