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Retail Stratgey Case Study: Carrefour - Assignment Example

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Executive Summary
This is a case study of the current operations of Carrefour. This is an international retail organization operating in more than thirty countries. T…
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Retail Stratgey Case Study: Carrefour
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Download file to see previous pages Throughout this case study, Carrefour’s strategy is considered to show how it has earned its success in its line of operation and how it has maintained its competitive advantage. At the end, we will give strategic recommendations advice, which can give the organization more success.
Carrefour is the second largest retailer in the world and the largest in Europe. The group currently operates in 32 countries of the world, mainly in Europe Asia and Latin America. It achieved this position in 1999 when it merged with French retailer, Promodes (Dawsonet al. 2006). It is a molt-format group operating hypermarkets, supermarkets, discount stores and convenient stores, but the hypermarket is the core format in almost every market of its operation (Dawson et al. 2006). This organization’s main competitor is Wal-Mart, which is the largest retailer in the world (Hitt et al. 2009). According to Hitt et al (2009), it tries to establish as many stores as possible in major urban areas to achieve economies of scale. Carrefour has continued to expand opening new stores and entering into new markets a process, which might make it the leading retail outlet in the world some years to come.
Retail strategy development
The advantage of Carrefour is achieving low prices while maintaining high-quality brand (Hitt et a. 2009, 76). Mission statement A mission statement is a statement of values, which spells out the underlying motivation for being in business and the contribution that your business makes to the society. The mission of this business is providing quality products to customer at competitive prices (Hitt et al. 2009, 76). Its main goal is to be among the top three retail outlets in each of the country in which it operates. Analyzing the environment Analyzing the environment involves looking at various aspects of the environment you operate in and trying to understand how it affects your operation. Through analyzing the environment this organization comes to know various needs and characteristics of its target customers in the areas they operate which in turn helps it to adjust its services to suite them. To achieve these, the organization involves both internal and external specialists. Competitive industry model A competitive industry model has a large number of buyers and sellers, each of which buys or sells a small proportion of the total industry output. It has also a production of uniform products and services and complete relevant market information by all organization operating independently on this line of industry. It has also free entry and exit from the market. Carrefour operates in such kind of a market, which makes pricing of its products more difficult. It has a demand curve that approaches perfect elasticity at the market price. This organization cannot sell its products at a higher price because it will lose customers and at low prices because it might make losses (McGuigan et al. 2010). Making strategic choices Due to the ...Download file to see next pagesRead More
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