Carrefour has taken a bold, consistent stance on developing in china. Carrefour is simply side - stepping the laws.
SWOT analysis Carrefour in China:
Operating localization strategy in both operation and management 1. Human resource:
Decision-makers can make a variety of decisions which are suitable for the local conditions. 2. Purchasing:
a) Raw material procurement process follows stringent quality checks and cost reduction methods. b) cutting the cost of the cost in the procurement channels c) increasing the competition between suppliers
Managers in each shop are authorized. Don’t need to many levels of transmission, which to avoid the distortion and delay of the information. 4. Business model:
a) Cutting the purchasing price, this adapts China’s economic and market environment. b) Relatively large stores with broad non-food lines
c) Store openings are progressing well
d) High proportion of locally sourced products
e) violating the policy of retail sector in china , like keeping opening illegal shop in china
1. Bad relations with the Chinese government
2. Having an individual shop-management mode, Having no transparency and poor project management, this reduces consumer’s loyalty to Carrefour. 3. The tense relationship with some suppliers, damaging Carrefour's image. 4. The majority of the retailors are small and medium-sized enterprises, which are lack of bargaining ability with the big companies. 5. Carrefour’s Own-brands don’t sell well in china.
6. High “entrance” fee, which is not allowed in the countries which are well-developed in the retail market.
1. China's accession to the WTO
2. The increase of senior personnel in the retail market
3. Withdraw from the Japanese market, and focus on China
1. The Policy and economic environment in china
2. The biggest competitor – Wal-Mart
3. The majority of China's local supermarkets
4. The markets(grocery markets) in...
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