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Carrefour

Carrefour. Chase Kukuchka Qian Liu (Olivia) Yang Wang (Doris) Fengliang Wu (Aaron). Corporation Introduction. Carrefour is the French word for crossroads Based out of Levallois-Perret France Selling both groceries and nonfood items including services as well as goods

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Carrefour

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  1. Carrefour Chase Kukuchka Qian Liu (Olivia) Yang Wang (Doris) Fengliang Wu (Aaron)

  2. Corporation Introduction • Carrefour is the French word for crossroads • Based out of Levallois-Perret France • Selling both groceries and nonfood items including services as well as goods • Originators of the Hypermarket • First international retailer to enter the Asian market

  3. Corporate Profile • Worlds largest retail chain with over 15,000 stores worldwide employing around 495,000 employees in 2009 • Worlds third largest retail chain in terms of profit and the second largest in terms of total revenue • Carrefour is a publically traded company with 3.52 billion shares • Ranked 25 in the Fortune Global 500 for 2009

  4. Company History • Company was founded by Marcel Fournier and Dennis Defforey • Free service was the concept they chose for their new store • The first Carrefour opened in 1957 in the French city of Annecy • Beating the competition with a basement opening

  5. The Hypermarket • The first hypermarket was opened on the outskirts of Paris in 1963 • Combination of a supermarket and a department store • Must have at least 150,000 square feet of floor space • 35% of the floor space must be used to sell nonfood goods • Today Carrefour operates over 200 hypermarkets in France alone with over 1,200 worldwide

  6. Five Types of Stores • Hypermarket • Supermarket • Department store • Discount store • Convenient store

  7. SWOT Analysis Strength • Strong brand awareness • Focus on competitive prices Weakness • Lack of a deep perception of the consumer behavior • Deterioration relationship with local suppliers

  8. SWOT Analysis Opportunity • Supply more types of stores in areas where it already has hypermarkets • EEU reveals a steady potential of sales for Carrefour

  9. SWOT Analysis Threat • Legislation requires the food wholesalers to offer the same prices to all the retailers promulgated by France government • Powerful retailers in E-commerce industry

  10. Global Expansion & Challenges 15,634 stores! Overview

  11. Global Expansion & Challenges Global Comparison of Tesco, Wal-Mart, & Carrefour

  12. Global Expansion & Challenges Second priority: G4 countries (Belgium, Italy, Spain, & France) First Priority: France Overview Third Priority: New merging countries

  13. Global Expansion & Challenges 7.5%

  14. Global Expansion & Challenges • Virtuous Cycle • Success Model of Carrefour

  15. Global Expansion & Challenges Failures • Reason in the US: fierce competition • Reason in Hong Kong: localized laws and competition • Reason in South Korea: consumer behavior

  16. Competitors

  17. Industry Analysis Retail Industry

  18. Industry Analysis Future Trend • Reduce price and strengthen process efficiently • E-commerce and online retailing(non-shop): presents about 2.7% of total retail industry revenue • Small single-store and independent retailers are forced out of the markets • Product cycles get shorter

  19. Industry Analysis Global Issues • 2007 Credit Crunch • Government regulations • Cross-cultural risk, country risk, currency risk and commercial risk • Food security

  20. Recommendations Short-term Recommendations • Giving Back to the Community • Improved Employee Moral • Using Products Made Locally

  21. Recommendations Long-term Recommendations • In-depth research before entry • Invest more to build the brand recognition • Enhance its perception of the market and the customers’ demand for their products

  22. Conclusion • Small profits but high volume strategy is selectively applicable. • Carrefour frequently failed during expansion, especially in developed countries. • The ability to collaboration is imperative. • The final way to success is to establish a good relationship with employees and outer entities.

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