carrefour china case
CARREFOUR CHINA,
BUILDING A GREENER STORE
Edizcan İkizoğlu
Ertuğrul Ozan Özbahar
Sırma Karakaya
IE457|Case 2 Report
Bilkent University
November, 2013
I.SUMMARY
In 1995, Carrefour entered China, with its first store opening in Beijing. By June 2006 the company was operating 73 hypermarkets in 29 Chinese cities and it was the number one foreign retailer in China having the fastest growing rate among its competitors [1]. The company planned to open 100 new stores in 2006-07 because the competition had recently stepped up. As competitors try to take the biggest share of pie, all brands of markets are forced to show their difference from the others in order to attract potential customers. Therefore, David Monaco, asset and construction director of Carrefour China, plans to open its first “Green Store” in Beijing before 2008 Olympic Games [1]. The Green Store was a new concept which indicates application of environmentally friendly processes during building and operating the market. Establishing a green store will not only provide sustainability through waste reduction but also decrease costs of the company. Furthermore, green store will be a good way of advertisement for attracting potential customers during Olympic Games. Monaco believes that it will increase their sales by 30%. However, since green store is a new concept for China, Monaco faced with some problems during effectuating the project [1].
II. PROBLEM DEFINITION
Main problem can be defined as the lack of strategy for effectuating the green store project. There is not a certain task to follow steps and construct green store buildings. Besides the main problem there are some sub-problems which slow down the application of green store project. These problems can be defined as follows:
People: Building a hypermarket is challenging but operating a retail system is even more difficult. Chinese people do not take care of the equipment and this causes reduction of lifetime of equipment and cause
BUILDING A GREENER STORE
Edizcan İkizoğlu
Ertuğrul Ozan Özbahar
Sırma Karakaya
IE457|Case 2 Report
Bilkent University
November, 2013
I.SUMMARY
In 1995, Carrefour entered China, with its first store opening in Beijing. By June 2006 the company was operating 73 hypermarkets in 29 Chinese cities and it was the number one foreign retailer in China having the fastest growing rate among its competitors [1]. The company planned to open 100 new stores in 2006-07 because the competition had recently stepped up. As competitors try to take the biggest share of pie, all brands of markets are forced to show their difference from the others in order to attract potential customers. Therefore, David Monaco, asset and construction director of Carrefour China, plans to open its first “Green Store” in Beijing before 2008 Olympic Games [1]. The Green Store was a new concept which indicates application of environmentally friendly processes during building and operating the market. Establishing a green store will not only provide sustainability through waste reduction but also decrease costs of the company. Furthermore, green store will be a good way of advertisement for attracting potential customers during Olympic Games. Monaco believes that it will increase their sales by 30%. However, since green store is a new concept for China, Monaco faced with some problems during effectuating the project [1].
II. PROBLEM DEFINITION
Main problem can be defined as the lack of strategy for effectuating the green store project. There is not a certain task to follow steps and construct green store buildings. Besides the main problem there are some sub-problems which slow down the application of green store project. These problems can be defined as follows:
People: Building a hypermarket is challenging but operating a retail system is even more difficult. Chinese people do not take care of the equipment and this causes reduction of lifetime of equipment and cause
References: [1] “Carrefour China, Building a Greener Store”(2013). [Online]. Available: http:// www.fleetanswers.com/sites/default/files/Carrefour_case_study.pdf (Accessed: 18 October 2013) APPENDIX 1) 2) 3) 4)