Carrefour - a global retail store
Added on 2021-06-17
15 Pages3730 Words120 Views
Management across bordersTopic 1
Running Head: ReportContentsExecutive Summary...................................................................................................................2Introduction................................................................................................................................3Internationalization strategy in Asian market............................................................................5Challenges faced while expanding in the Asian market..........................................................10Conclusion................................................................................................................................12References................................................................................................................................131
Running Head: ReportExecutive Summary Carrefour is one of the leading French retail store with a global presence. It was started in theyear 1959 with its creation of hypermarkets in 1963. The company opened its first foreignstore in the year 1969 in Belgium and internationalize its business for the first time inTaiwan, Asia in the year 1989 and further expanded its presence in China and other Asianlocations. It merged with Promodes to create the first European group named Groupe`Carrefour and became the second global retail group after Wal-Mart. Groupe Carrefouroperates as a multi-group format with five key grocery store formats, namely, supermarket,hypermarket, hard discount, convenience stores and E-commerce. Carrefour expanded intomajor three geographical areas which are, Europe, Latin America and Asia. While expandinginternationally, the company brought in a lot of improvements along with an aggressive pricereduction for attracting new customers. The emerging market is mostly represented by the Chinese market and considering theexpansion plans and internationalization, Carrefour viewed the Asia-pacific region with highabilities where the company could increase its activities and revenue. Their expansion plan ofinternationalization focussed on a few main emerging markets of Asia, which are the onesthat possessed growth opportunities, required retail structures. As a part of a company’smarketing strategy, Carrefour increased its number of international stores through pricereduction for strengthening its position. Their key goal is to build up the company’s brandacross the globe. The major challenges faced by the company while expanding globally wasin the Asian market. The essay provides a brief introduction to the company and analysis its internationalizationstrategy when the company decided to expand its base to different geographies including the2
Running Head: ReportAsian market. The document later covers the various challenges it faced while expanding inAsia and then provides a conclusion.Introduction In the last five decades Carrefour group has built itself as one of the leading distributiongroups across countries. It is the second largest retailer in the world and largest retailer inEurope. Carrefour group has more than fifteen thousand stores around the world and thesestores are either company-operated or franchise. Carrefour is one of those early retailer,which expanded and globalized its business into Asian countries. Its first successfulinvestment with expansion was in Taiwan in the year 1989. Since then the company hascontinuously opened multiple hypermarkets in various Asian nations. The company workswith a motto of “We are global, we act local”, as it completely adapts to the country’s cultureand environment. This has been the key to the company’s global success through adjustingand adapting its operations and business with its motto [ CITATION Bel081 \l 1033 ].Carrefour is the company that originated and popularized the concept of hypermarket whereeverything is available at one location, with discount prices, free parking and self-service bycustomers. Carrefour’s marketing strategy has helped it beat the competition, and its strategyhas been to combine low prices of cash and carry store with the supermarket [ CITATIONLas131 \l 1033 ]. The company’s internationalization strategy has helped it become the second largest retailerin the world after Wal-Mart. Carrefour’s internationalization strategy selects countries on the3
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