Carrefour to supplant his competitor Wal-Mart
In front of Wal-Mart, what strategic step allows Carrefour to be imperative on the market of the mass-market distribution in China?
1. Mission, work
2. Competition Walmart-Carrefour
3. Domination of Carrefour
2.Analysis of the environment
1. Method Pestel : study of macro environment
2. The five Forces of Porter
3. Diagnostic of the firm
1. Chain of value
2. SWOT analysis
Before becoming number 1 in Europe and the world number 2 in the sector of the mass-market distribution, Carrefour was a family company. Two brothers, Marcel andDenis Defforey allied to the family Fournier create in 1963 the very first supermarket in Annecy. Inspired by the American model, the success is immediate.
Ambitious group which becomes international from 1969 in Belgium, and lists on the Stock Exchange in 1970. In ten years, the family Carrefour company became an international group quoted in stock exchange. Its growth and its developmentallowed to increase quickly its importance on markets to be conquered.
Present for more than 10 years in China, Carrefour benefits of the emergence of a consumer society very large scale. To satisfy the Chinese consumers, Carrefour leans on a strategic approach certainly mastered - Carrefour makes well its profession for fifty years - but which requires a particular attention on thespecificity of the local demand. The sector of the large distribution is in strong growth in China. The massive and increasing concentration of populations in cities creates a need of large-scale trade spaces. The main competition of Carrefour on the market of the large distribution is the American giant Walmart.
Increase in importance of the group Carrefour in China:
Present since 1995 on theChinese territory, Carrefour quickly stood out as the leader of the sector.
In front of Wal-Mart, what strategic step allows Carrefour to be imperative on the Chinese market of the large distribution?
To answer this problem, we are going to follow an analytical step of strategic segmentation by the study of the chain of value and analysis of the environment to determine the key factors of successof the group Carrefour in China.
1. Mission, work
The groups Carrefour and Wal-Mart operates on the sector of the large distribution. Their profession consists of the offer of the goods and the service in hypermarket. The graph below proposes a classification of the various professions by the big signboards of distribution in China. Nevertheless, we shallquarter our analysis afterward in the spheres of the clientele, the food, and services were bound to the sale of foodstuffs.
Today, the group Carrefour pursues its development on these markets, by spreading its strategy multi-size, by the organic growth and by means of acquisitions. On these markets of growth, the multi-size still slows down the development potential. It is also a tremendouscontrol lever of acceleration of the expansion of the Group and the consolidation of its market share. In the years 1990-2000, the Group knew how to very early become established on carrier markets, such as Greece in 1991, Turkey in 1993, Poland in 1997, Rumania in 2001. Everywhere, the signboard Carrefour is very appreciated for its low prices, the quality of its products, the modernity of itsstores and the services proposed to the customers there.
1.2. Setting-up of stores Carrefour and Walmart
Network of stores Carrefour and Walmart in China :
Both arrange each of more than 100 hypermarkets (stores of more than 5.000 m2 on average) all in all, more than ten years after their arrival at the Asian giant, the henceforth inescapable market. Besides...