Carrefour Expands Abroad
1. What is the biggest competitive threat facing Careefour as it expands in global market?
Careefour pioneer for the hypermarket had faced many competitive threats while expanding their global market; they featured many products like groceries, toys, furniture, fast food and also financial services, all under one roof. The first hypermarket was opened in 1963 with the help of French government. By 1973 Carrefour became world’s most global retailer with 15,000 stores globally.
When Careefour established its first hypermarket in Philadelphia US, and other unit in US, but then shut down both the store soon. The problem was some customers found the store too big in space. This made customers confuse about the arrangements of the products and have to go all the way long in the store to find their products. For many products there was one floor for one only brand. This made customers no choice for different products on same floor and have to move to other floor to find other brands.
In many countries believe in visiting their small stores for their daily shopping and they feels loyalty for their shopping from their traditionally owned family stores in their area. Also as women started to enter in workforce, they get less time for shopping in huge hypermarkets, which consume there most of time for shopping, and made them to choose smaller markets and store for daily shopping who gives frequent discounts and finish their shopping faster then hypermarkets. Thus they found hypermarkets only as an alternative to store-to-store shopping.
When Careefour opened their first store in Venezuela, Tendas Exito in May 2001, they faced small population in area only about 23 million people and also economy at that time was in somewhat recession.
In Europe Careefour face intense competition from their rivals aldi and others who offered discounts to their customers which features private label brands at lower price.
2. When Lars Olofsson became chief executive of Carrefour, one
Careefour pioneer for the hypermarket had faced many competitive threats while expanding their global market; they featured many products like groceries, toys, furniture, fast food and also financial services, all under one roof. The first hypermarket was opened in 1963 with the help of French government. By 1973 Carrefour became world’s most global retailer with 15,000 stores globally.
When Careefour established its first hypermarket in Philadelphia US, and other unit in US, but then shut down both the store soon. The problem was some customers found the store too big in space. This made customers confuse about the arrangements of the products and have to go all the way long in the store to find their products. For many products there was one floor for one only brand. This made customers no choice for different products on same floor and have to move to other floor to find other brands.
In many countries believe in visiting their small stores for their daily shopping and they feels loyalty for their shopping from their traditionally owned family stores in their area. Also as women started to enter in workforce, they get less time for shopping in huge hypermarkets, which consume there most of time for shopping, and made them to choose smaller markets and store for daily shopping who gives frequent discounts and finish their shopping faster then hypermarkets. Thus they found hypermarkets only as an alternative to store-to-store shopping.
When Careefour opened their first store in Venezuela, Tendas Exito in May 2001, they faced small population in area only about 23 million people and also economy at that time was in somewhat recession.
In Europe Careefour face intense competition from their rivals aldi and others who offered discounts to their customers which features private label brands at lower price.
2. When Lars Olofsson became chief executive of Carrefour, one