Carrefour Egypt: Buy in Bulk and Save Money - Essay Example

The planned opening of four hypermarkets by 2011, coupled with 17 hypermarkets and 70 supermarkets in the next five years have greater potentials to increase sales, generate higher profits and increase market shares for Carrefour stores.The overall corporate strategy of Carrefour that they are able to sell their products are considerably low prices through purchasing these products in bulk from various suppliers and availing of price discounts due to volume has proven to be effective and successful.

As indicated from the case facts, from the reported sales figures in 2006, Carrefour stores were able to generate a net profit of as much as $2 billion, which is a remarkable feat. The company is able to sustain financial success by maintaining low overhead costs by retaining a small workforce; that which is only appropriately needed to support the company’s required operations.Also, I believe that part of the financial success, apart from availing of volume discounts from suppliers, is its ability to satisfy the customers’ needs through their one-stop-shop approach.

Aside from the products that are availed in the highest perceived quality and at the lowest prices, shopping at Carrefour is a memorable experience which could be shared with family members and friends. Consumers are given the chance to share their quality time through a quick meal or through games and entertainment. Further, their competitive advantages of according various amenities in terms of providing convenience to shoppers (free parking, multiple checkouts) and the chance to avail of various promotions and guarantees make shopping at Carrefour preferred over those of its competitors.

By providing all the amenities and making sure that consumers could spend quality time through giving options for meal and entertainment, Carrefour effectively provides consumers with a conducive atmosphere to spend longer times to shop and spend leisure hours in their stores.