PRINCIPLE & PRACTICE OF MANAGEMENT
International Case : Carrefour — Which Way to Go?
How should Mr. Durant assess the opportunities in various countries around the world? Mr. Durant, the new CEO since 2005, embarked on the new strategy by offering 15percent new products in its hypermarkets and 10 percent in its supermarkets. Moreover, he wants to employ more staff, extend the operating hours in certain hypermarkets, cutting prices, trying small stores, and pushing down decision making. Mr. Durant aims to stay only in countries where Carrefour is among the top retailers.
2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage or disadvantage of such a strategy? Yes certainly they have to adopt the strategy of low pricing every day, In France, where Carrefour is well established, the company made the big mistake in its pricing policy. Itprobably started with the 1999 merger with Promodes, the French discount chain.Carrefour confused the French clientele by losing its low-cost image. The new strategy which they want to implement discounts and cutting prices, trying small stores certainly will help Carrefour to keep their competition in all over the world. 3. How could Carrefour differentiate itself from Wal-Mart?
Wal-Mart is more than just the world's largest retailer. It is an economic force, a cultural phenomenon and a lightning rod for controversy. It all started with a simple philosophy from founder Sam Walton: Offer shoppers lower prices than they get anywhere else. That basic strategy has shaped Wal-Mart's culture and driven the company's growth.
Now that Wal-Mart is so huge, it has unprecedented power to shape labour markets globally and change the way entire industries operate. In this article, you will learn the key reasons that Wal-Mart has been able to keep its prices low -- cutting-edge technology, a frugal corporate culture and a push to make suppliers sell merchandise at cheaper and cheaper prices. We'll also take a look at the scope of Wal-Mart's impact on the economy and the controversies surrounding Wal-Mart, as well as the future of the company. With 12 million loyalty card-holders in France, but also 7.5 million in Spain, for example, Carrefour group stores have an excellent base from which to forge closer relationships with customers. Asa multi-format retailer, Carrefour can offer solutions addressing a wide variety of shopping habits. In2009, the Carrefour group is enhancing its knowledge of customers, with the aim of serving them better and improving its brand image. In stores, the Carrefour brand will be conveyed in a way that is closer to the customer and more emotionally involving. By being more competitive, the brand will again become a tool for winning customers, enhancing customer loyalty and distinguishing Carrefour from the pack. In towns and villages, as convergence accelerates, the Carrefour brand will provide its best stores to more customers. In this way, Carrefour will make customers want to come, and keep coming, to its stores, regardless of the format or product offering. By focusing on retailing, Carrefour will become customers' preferred retailer. 4. Identify cultures in selected countries that need to be considered in order to be successful? Carrefour operates in 29 countries around the world. World population is rising, geographic distribution of populations is shifting, world population is aging rapidly, and ethnic mixes in developed countries are changing rapidly, and average household incomes are increasing. The demographic environment presents both opportunities and threats for Carrefour. Increases in population size and household incomes help to expand the market in which Carrefour operates. However, changes in the geographic distribution of populations, due to technological advances in communications, may cause difficulties for Carrefour in determining profitable locations for new storefront SOCIO-CULTURAL
Please join StudyMode to read the full document