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International Case : Carrefour — Which Way to Go?
Wal-Mart's biggest global competitor is the big French retailer Carretour, a firm that has hypermarkets, big
stores offering a variety of goods. It has made large investments around the globe in Latin America and China.
But not all is well as competitors taking market share its home market, for instance. There has been even
speculation of a takeover by Wal-Mart or Tesco, an English chain. Mr. Barnard has been ousted after heading
the company for 12 years; he was replaced by Jose Luis Durant who is of German-Spanish descent. Although
the global expansion is cited by some as success, it may be even a big mistake. It withdrew from Japan and
sold 29 hypermarkets in Mexico. Carrefour also had problems competing with Tesco in Slovakia and the
Czech Republic. In Germany, the company faced tough competition from Aldi and Lidle, two successful
discounters. On the other hand, it bought stores in Poland, Italy, Turkey, and opened new stores in China,
South Korea, and Columbia. Carrefour has become more careful in selecting markets. But. the company is
eager to enter the Indian market, but found out in late 2006 that Wal-Mart will do so as well.
In France, where Carrefour is well established, the company made the big mistake in its pricing policy. It
probably started with the 1999 merger with Promodes, the French discount chain. Carrefour confused the
French clientele by losing its low-cost image; whether the image can be changed remains to be seen. Mr.
Durant, the new CEO since 2005, embarked on the new strategy by offering 15 percent 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.
Questions:
1. How should Mr. Durant assess the opportunities in various countries around the world?
2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage or
disadvantage of such a strategy?
3. How could Carrefour differentiate itself from Wal-Mart?
4. Identify cultures in selected countries that need to be considered in order to be successful?

Answer
1. How should Mr. Durant assess the opportunities in various countries around the world?
[IN EVERY  COUNTRY,
-THE  COMPANY  SHOULD  ASSESS  THE  MARKET .
-DEFINE  THE  SOCIO-ECONOMIC  PROFILE.
-IDENTIFY THE  PRODUCTS  DEMAND
WHICH MATCHES  THE  MARKET.
-THEN   POSITION  THE  CARREFOUR
RETAIL  OUTLETS.
=======================


2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage or disadvantage of such a strategy?
[NO  CARREFOUR  SHOULD  NOT  FOLLOW  BLINDLY  THE  WAL-MART.
ADVANTAGES
-it  will  gain  some  limited gain  in  the  market  entry.
DISADVANTAGES
-it  will not  be  able  to  match   the  supply  chain  strength  of  wal-mart.
======================
3. How could Carrefour differentiate itself from Wal-Mart?

CARREFOUR   SHOULD  POSITION  ITSELF  AS  ‘’ MID  UPMARKET’’ RETAILER  AND  OFFER  PRODUCTS  ACCORDINGLY.
======================
4. Identify cultures in selected countries that need to be considered in order to be successful?
JAPAN
It is widely known for its traditional arts as well as its contemporary pop culture.
-one  must  understand  the  buying  behaviors  and  decision  making  of  the  individuals.
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Leo Lingham

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management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc

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18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc

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