SWOT Analysis CARREFOUR

Topics: Hypermarket, Carrefour, Wal-Mart Pages: 6 (983 words) Published: April 27, 2015
STRATEGIC PLANNING AND MANAGEMENT

Fages Gaspard
Introduction of the company

Main address: Carrefour S.A., BP 419-16, 75769 Paris Cédex1 6 Avenue Raymond Poincaré, Paris 75116, France
Tel: +33 1 53 70 19 00 Fax: +33 1 53 70 86 16 Website: www.carrefour.com Carrefour is the world’s second largest retailer in terms of sales. Truly global player with operations in over 35 countries.

Major formats are hypermarkets, supermarkets and discount stores. Well known for entering and adapting to emerging markets.
Group turnover (2012): EUR 85.96 billion
Total number of stores (including franchises): 15,673
Carrefour SA was first listed on the French stock market in 1970. First opening stores in France during the 1960s, Carrefour went on to open the first hypermarkets in France and Europe. First started expanding into the rest of Europe in the early 1970s and 1970At the same time the ED discount format was introduced. The Carrefour own-label was introduced in 1985.

The first non-European store was opened in Brazil in 1975. Carrefour's firs Asian store opened in Taiwan in 1989. Carrefour announced its intention to merge with Promodès at the end of August 1999 with the merger approved in January 2000. The Carrefour name was retained with the majority of Promodès stores rebranded. The merger pushes Carrefour to second place in global retailing. Carrefour operates a diverse portfolio of formats, including hypermarkets, supermarkets, discount stores, cash & carries, c-stores and a number of neighbourhood store formats for independent retailers. Pioneer of hypermarket format. All hypermarkets trade under the Carrefour banner worldwide. With the opportunities for hypermarket openings in developed markets slowing, Carrefour’s strategy is to use the format to establish itself in emerging markets around the world. Supermarkets trade under a variety of fascias, although Champion is the most important. Discount stores are operated by Dia. Dia is now seen as a key brand for Carrefour’s future growth. Given the success of the Dia format with its high profitability levels, it is not surprising that Carrefour is placing more emphasis on the discount banner in order to grow internationally–especially in South America and Asia. The strategy is to establish all these major formats (hypermarkets, supermarkets and discount stores) in all countries. SWOT

Strenghts

Wide Market Presence and a strong brand name

World’s second largest and Europe’s retailers of groceries and consumer goods in terms of revenue with over 9900 stores worldwide

Multi Format Strategy-hypermarkets, supermarkets, hard discount stores and convenience stores

Own popular private-label brands

Pioneer in Hypermarket format

High Quality maintenance

Weakness

Limited presence in emerging economies of Asia and Middle East

Recent happenings attracted negative media coverage, diluting its public image

Limited Performance in the e-commerce online retail channel
Opportunities

Leverage on its international brand equity to establish in emerging economies

Focus on growth through strategic tie-ups and innovative marketing

Threats

Rising competition from other discount stores in France and abroad

Rising Labour costs and Economic slowdown to increase costs

Main competitors of Carrefour worldwide:
Tesco PLC
Casino Guichard-Perrachon SA
Delhaize Group S.A.
Metro AG
ALDI Group
Edeka Zentrale AG & Co. KG
Lidl Dienstleistung GmbH & Co. KG
Koninklijke Ahold NV
Groupe Auchan S.A.
REWE Group

Factors of micro environment
Trends
Impact of the trends on the given industry (1=very weak, 6=very strong) Rivalry among competitors
European competitors are very important, they are also settled permanently. No more price competition.

5 = strong

Threat of new entrants
This market is now mature. So it would be very difficult for new comers to enter.

1 = very weak...
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