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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

Carrefour

Chase Kukuchka

Qian Liu (Olivia)

Yang Wang (Doris)

Fengliang Wu (Aaron)

corporation introduction
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
corporate profile
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
company history
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

the hypermarket
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
five types of stores
Five Types of Stores
  • Hypermarket
  • Supermarket
  • Department store
  • Discount store
  • Convenient store
swot analysis
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
swot analysis1
SWOT Analysis

Opportunity

  • Supply more types of stores in areas where it already has hypermarkets
  • EEU reveals a steady potential of sales for Carrefour
swot analysis2
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
global expansion challenges
Global Expansion & Challenges

15,634 stores!

Overview

global expansion challenges1
Global Expansion & Challenges

Global Comparison of Tesco, Wal-Mart, & Carrefour

global expansion challenges2
Global Expansion & Challenges

Second priority: G4 countries (Belgium, Italy, Spain, & France)

First Priority: France

Overview

Third Priority: New merging countries

global expansion challenges4
Global Expansion & Challenges
  • Virtuous Cycle
  • Success Model of Carrefour
global expansion challenges5
Global Expansion & Challenges

Failures

  • Reason in the US: fierce competition
  • Reason in Hong Kong: localized laws and competition
  • Reason in South Korea: consumer behavior
industry analysis
Industry Analysis

Retail Industry

industry analysis1
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
industry analysis2
Industry Analysis

Global Issues

  • 2007 Credit Crunch
  • Government regulations
  • Cross-cultural risk, country risk, currency risk and commercial risk
  • Food security
recommendations
Recommendations

Short-term Recommendations

  • Giving Back to the Community
  • Improved Employee Moral
  • Using Products Made Locally
recommendations1
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
conclusion
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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