From: Giorg i Gogava To: Mr. David Wikla uri Case # 12.1
Carrefour Expands Abroad
1. What is the biggest competitive threat facing Carrefour as it expends to global market ? There are many competitive threats facing Carrefour in the global environment such as competitive rivalry, low switching costs etc. but in my opinion the biggest threat which Carefour is facing is threat of substitution because the only real competitive advantage of Carrefour for example in China at first stage is not it’s well known name of Heritage but how it will position itself how will be its costs look like compared to those of its rivals and will it have enough choice for a selected price or category. But Carrefour has already faced such prob lems in the past and coped with them so I think this threats will not hinder its progress.
2. Carrefour is currently a top global retailer in China. What must it do maintain its leadership position a Wal-Mart expands operations there. Well there are many different choice and strategies which Carrefour might use to accomplish its task. It can try to maintain it’s share by competing through cost offering the most convenient costs compared to its competitor in this case Wal-Mart. Also it might try to win the game by offering better choice for customers offering more high end products than Wal-Mart. As far as it already entered to the market and established there Carrefour has some advantage compared to Wal-Mart because it already knows some peculiarities of the Chinese
society and might use this to its own advantage and try to win by establishing more tight and close relationship with customers. These are only few of the strategies which actually Carrefour might choose. It can also use some kind of combination of all these strategies to own advantage.
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