Case Analysis of Carrefour

Topics: Carrefour, Hypermarket, Tesco Pages: 11 (3445 words) Published: December 2, 2012
Table of Contents
Subject Page #
History of Carrefour3
Contingent Factors4
Social Responsibility8
Ethics & Corporate Governance10
Organizational Structure11

History of Carrefour (Convenience Stores, Supermarket, Hypermarket)
Carrefour means “crossroad” in French, the implication of Carrefour is that people could find Carrefour stores very easily and conveniently. Carrefour logo with its blue, red and white colors has a very significant meaning behind it. It is a continuous commitment to their customers. The logo is coming from C of Carrefour and an arrow on both sides, representing customers coming from all directions and meeting at Carrefour. Carrefour is established in France in 1959 by two entrepreneurs, one is the local retailer, Louis Defforey, and the other is the supermarket’s owner Mareel Fournier. The Group has formulated a policy based upon convenience, trust, low price and quality products and services. (FUNDINGUNIVERSE.COM.) Over the past 50 years, Carrefour has grown to become one of the world’s leading distribution organizations. In the following paragraphs, I assumed that the development of Carrefour could divide into five periods: a. Beginning and Establishing (1959-1963) – Defforey was the owner of Badin-Defforey (retail business). Fournier was the owner of the department store. One day, they decided to collaborate to create a concept of hypermarket in order to expand its business scale. Carrefour was the first hypermarket that established in France soon after five years. b. Growth (1963-1976) – Due to the collaboration, Carrefour rapidly developed from Convenience Stores, Supermarket, into Hypermarket in five years. The most important factor is that Carrefour decided using decentralization strategy for each branch in order to governance closer to local citizen. c. Own Branding & Manufacturing (1976-1991) – Within these periods, Carrefour had a new innovative ideology to develop a concept of private branding. Carrefour buys from manufacturers and named those products themselves. The strategy made pricing more flexible. It brought great revenue for Carrefour. Therefore, in 1985, Carrefour developed their first Own Branding & Manufacturing, Harmonie and the innovative ideologies maintain the No. 1 position for them in France. d. Expansion by Acquisition (1991 – continued) – Since 1991, Carrefour did a great job on expanding their hypermarket. Especially, Carrefour acquired Promodes, this decision catapulted Carrefour into the No. 1 position in Europe and also be the second largest retailer in the world. e. Globalization (2000 – continued) – Within these periods, Carrefour continued expanding their hypermarket to all over the world, Brazil, Argentina, the United States, Mexico, Taiwan, Thailand, China and so on. Over the past 50 years, through organization’s culture, strategy, innovative ideology, Carrefour showed that they can stand out in the world is not a coincidence.

Contingent Factors:
Most of people have a thought about “France merchandises are always expensive.” At that time, Carrefour did exactly the opposite way; it decided to sell household items in low-end price as their main type of operation. The innovative idea of hypermarket was specific which sell various goods including food, clothing, consumer goods and household appliances. This development impressed the whole France’s retailer industry; however, no one expected that hypermarket became a rapid success, revolutionizing the retail industry in France soon after development. The small and medium-sized retailers were encountered an unprecedented shock from hypermarket. Therefore, French government developed several laws to increase the restriction on operating hypermarket in order to protect traditional retailer. As a result, Carrefour decided to go global as...
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