Business strategy: Carrefour

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Business strategy: Carrefour

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Abstract

Introduction

Carrefour is a French retail chain that stands second internationally. It is a just a step behind the American retail chain, Wal-Mart. It was established in 1959 in Annecy, it quickly became a small group and on 16 June 1970 , Carrefour entered the Paris Bourse. (CAC 40).Today, it has outlets in Europe, South America and Asia (among others). This chain functions through local partnerships.
We will first present an internal analysis of the group, followed by an external analysis and then we will study its globalization strategy.

I) Internal strategic analysis

1) Functional Analysis: Marketing Mix
A marketing mix is characterized by the 4 Ps i.e. Price, Product, Place (distribution) and promotion (communication).

a) Price
Strengths: Its pricing policy is based on the CPI which is an index of consumer prices. The group has implemented a strategy of varying prices that depend on the types of deals that Carrefour implements:

- Maximum discount represents a saving strategy with low-end products that are sold at a low price. This is experiencing the development of particular problems that are related to the purchasing power of households.
- Shops that set rather high prices for products do not necessarily guarantee quality. (Mid-range policy)
- Hypermarkets and supermarkets offer good quality products at relatively low prices. (the higher value for money strategy)

Weaknesses: The battle with prices that is being waged by major retailers depends on the margins. Carrefour has lost some of its market share in recent years and this struggle with its competitors will make recovering its shares difficult.

Tags: Analysis of Carrefour strategy; cross-sectional analysis; business strategy

The website
1. Introduction
2. Site Survey
The evolution of communication of McDonald's in France
1. The arrival of the fast food giant in France
2. Criticism leveled at McDonald's
3. The classical evolution: the identity
Conclusion

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[...] Place: Strengths: ¬ The Carrefour group is, by definition a distributor. Carrefour distributes via its sales in stores. ¬ The group distributes on the Internet through its online shops, www.carrefour.fr ( 1.5 million visitors per day), www.ooshop.com and www.boostore.fr (for non- food items). The market for e-commerce has increased by 40% and more French people are buying their provisions online. Weaknesses: There are very few hypermarkets in France today and this is of concern as it might be due to the lack of popularity. [...]

[...] Carrefour establishes itself in emerging countries in search of new opportunities. Conclusion Today, Carrefour is a powerful group that keeps up with the conditions of its environment by adopting two strategies: A differentiation strategy i.e. Carrefour is developing a competitive edge over its competitors by selling innovative products. A strategy of specialization - enabled Carrefour to establish itself all over the world. Indicative bibliography by Oboulo.com http://www.carrefour.com/cdc/group/our-strategy/ http://www.warsawvoice.pl/WVpage/pages/article.php/12889/article http://www.srooster.com/?p=544 Marketing and Sales Management Finance Directorate of Information Systems (electronic banking, payment management . [...]

[...] It is a just a step behind the American retail chain, Wal-Mart. It was established in 1959 in Annecy, it quickly became a small group and on 16 June Carrefour entered the Paris Bourse. (CAC 40).Today, it has outlets in Europe, South America and Asia (among others). This chain functions through local partnerships. We will first present an internal analysis of the group, followed by an external analysis and then we will study its globalization strategy. Internal strategic analysis Functional Analysis: Marketing Mix A marketing mix is characterized by the 4 Ps i.e. [...]

[...] In terms of relations (tools of customer loyalty). Ecological Development of ‘eco civics', an environmental awareness group. Popularity of the concept of sustainable development and organic products. Faced with this new trend, Carrefour has implemented environmentally friendly products in the range of ‘Agir Bio'. Legal - Galland Law (The reform aims to rebalance business practices and assumes a more profitable retail system. It can play on two levers: draw from the purchase price from its suppliers and reduce the cost of store operations) Dutreil Law of 2 August 2005, (Dutreil a device which is intended to clarify the relationship between industry (producers) and trade (distributors) has reinforced the role of the general conditions of sale and redefine the threshold for selling below cost by focusing, at least in theory, to limit abusive trade practices and particularly those relating to the growth of back margins). [...]

[...] Earlier, large distribution companies were prohibited from advertising. Economic Created the website www.carrefour.fr in response to the development of e-commerce. Decline in purchasing power in France and difficult economic conditions; crisis of late 2008 and the food crises (BSE, FMD poultry). Sociological Changing consumer behavior, population is getting more concerned with ecology and environmental protection. Quality requirement. Significant and growing disaffection of French consumers for hypermarkets. Technological The retail sector is characterized by innovation which is supposedly necessary to withstand competition. [...]

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