Carrefour retailer Essay

Introduction of the Case crossway was the second largest retailer of consumer goods and groceries worldwide, by and by Wal-mart. The company pioneered the concept of hypermarket in their home Country, France, as early as 1960s.However, towards late 1990s interbreeding saw a dec in their french hypermarkets owing to certain unfavorable government regulations and competition from firmly discount stores. carrefour introduced a series of strategic initiatives in an effort to revamp the ailing French hypermarkets. As a result, French hypermarkets started display signs of recovery towards late 2004. The case discusses about the emergence and growth of unwaveringly discount stores in France. This case also provides scope for discussion of decline of Carrefours French hypermarkets and its revamp strategies.Pedagogical Objectives The state of leaden discount stores in France Impact of government regulations on French retail industry Growth of Carrefours hypermarkets in France Revam p strategies of Carrefour hypermarkets in France.1. How should Mr. Durant assess the opportunities in various countries around the world?Mr. Durant, the newborn 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(prenominal) staff, extend the operating hours in certain hypermarkets, acid prices, trying sm exclusively stores, and pushing down decision making. Mr. Durant aims to stay solitary(prenominal) in countries where Carrefour is among the top retailers.2. Should Carrefour adopt Wal-Marts strategy of embarrassed prices everyday? What would be the advantage or disadvantage of such(prenominal) a strategy?Yes Certainly they learn to adopt the strategy of low pricing every day, In France, where Carrefour is well established, the company make the big mistake in its pricing policy. It probably started with the 1999 merger with Promodes, the French discount chai n. Carrefour confused the French clientele by losing its affordable image. The new strategy which they want to implement discounts and cutting prices ,trying small stores sure as shooting will helpCarrefour to keep their competition in all over the world.3. How could Carrefour differentiate itself from Wal-Mart?Wal-Mart is more than just the worlds largest retailer. It is an economic force, a cultural phenomenon and a lightning rod for controversy. It all started with a simple philosophy from founder Sam Walton Offer shoppers lower prices than they accept anywhere else. That basic strategy has squ be upd Wal-Marts culture and impelled the companys growth. Now that Wal-Mart is so huge, it has unprecedented power to shape labor markets globally and change the way entire industries operate. In this article, you will learn the key reasons that Wal-Mart has been able to keep its prices low cutting-edge technology, a frugal corporate culture and a push to make suppliers deal out me rchandise at cheaper and cheaper prices. Well also take a look at the scope of Wal-Marts impact on the economy and the controversies surrounding Wal- Mart, as well as the future of the company.With 12 million loyalty card-holders in France, but also 7.5 million in Spain, for example, Carrefour groupstores drive an excellent base from which to forge closer relationships with customers. As a multi-formatretailer, Carrefour can offer solutions addressing a wide variety of shopping habits. In 2009, the Carrefour group is enhancing its knowledge of customers, with the aim of serving them better and astir(p) its brand image. In stores, the Carrefour brand will be conveyed in a way that is closer to the customer and more emotionally involving. By being more competitive, the brand will again become a tool for winning customers, enhancing customer loyalty and distinguishing Carrefour from the pack. In towns and villages, as convergence accelerates, the Carrefour brand will provide its best stores to more customers. In this way, Carrefour will make customers want to come, and keep coming, to its stores, unheeding of the format or product offering. By focusing on retailing, Carrefour will become customers preferred retailer.4. Identify cultures in selected countries that need to be considered in order to be successful?Carrefour operates in 29 countries around the world. World universe isrising, geographic dissemination of populations is shifting, world population isaging quickly, ethnic mixes in developed countries are changing rapidly, andaverage planetary house incomes are increasing.The demographic environment presents both opportunities and threats for Carrefour. Increases in population size and household incomes help toexpand the market in which Carrefour operates. However, changes in the geographic distribution of populations, due to technological advances incommunications, may cause difficulties for Carrefour in ascertain paying locations for new storefron tSOCIO-CULTURAL1.New markets had seen dramatic changes in consumer buying habits,coupled with exalted growth in per capita GNP,2.suburbanization, greater participation of women in the labor force, and a large increase in theownership of cars and refrigerators.3.The continued growth of suburban communities abroad is another major sociocultural trend.4.Asian customers still tended to shop daily at wet markets or mom & popstores.5.Moreover, impulse buying was on the rise and replacing necessity purchasing.6.Shopping as a form of unoccupied was an increasing phenomenon.CONCLUSIONCarrefour has positioned itself as an international leader in the retail industry.Their strategies have proven successful for a number of reasons. First, they have beenable to successfully transfer competencies to associates and managers across the globe.Also, they have been able to adapt to topical anesthetic cultures and consumer tastes as necessary. Insome cases, they have plain managed to change consume r tastes and buying habits. Theyhave succeeded in get in new markets aggressively and gaining a large share of eachmarket. Carrefour has even been able to restructure when legalities made it necessary.The question remains, then, what should Carrefour do in the future. Carrefour should remain in the retail industry. It should continue those practices that have provensuccessful and profitable in the past. Also, Carrefour should continue to leverage itsknowledge of international markets to continue its rapid expansion across the globe. Carrefour should, however,be wary of threats to its operations, and remain sharp-sighted I exploring new ways to improve its products and services. Carrefour has come this remote based on its ability to pioneer new retail concepts and should mobilise that this pioneering spirit is what will carry it into the future.