Presenation on case study based on Carrefour.

1. CARREFOURFinding Retail Space In All The Right Places.
LOVELY PROFESSIONAL
UNIVERSITY MBA-Q1529
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3. AGENDA
 Introduction
 History
 Growth/Expansion
 Failure
 SWOT Analysis
 Conclusion/Suggestions
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4. INTRODUCTION
 Industry : - Multinational Retailer
 Headquarter : - Boulogne Billancourt, France
 Founded : - January 1, 1958
 Age : - 57 Years
 Area Served : - World Wide
 CEO : - George Plassat
 Yield : - Cash & Carry, Warehouse Club,
Discount Store, Hypermarket,
Supermarket
 Website : - www.carrefour.com
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5.  First store opened in 1960.
 Largest retailer in Europe and Latin America, second largest in
worldwide by 2007.
 More than 12500 stores and 456000 employees.
 Stores depend on food for 60% of their sale and rest for non
food items.
 Derives 52% of its sales and 48% of its profits outside France.
 Operated in about twice the number of countries as the world’s
largest retailer Wal-Mart
 Now fourth largest retailer. 5

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13. GROWTH
 Carrefour operated 218 hypermarket in France by 2006.
 Sells underperforming stores and move from countries offering
less potential profits.
 Decided to expand internationally.
 First foreign entity, with partnership was to Belgium.
 Its wholly owned foreign store was in Spain. 13

14.  In 2006, sold its operations in South Korea and Slovakia while
expanding heavily in Poland.
 Announced plans in 2007 to enter the Indian and Russian
markets.
 Principle factor guiding Carrefour's International expansion has
been countries “economic evolution”.
 Carrefour growth faced some obstacles in France.
 As government have restricted new hypermarket permits to
safe guard town center, protect small business.
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16. FAILURE
 Carrefour has not always followed its location strategy and
deviation has influenced its failure in some markets.
 Expanded into U.S and U.K in mid 1980s and later pulled out
of both markets.
 Entered Mexican, Japanese, Korean, and Chilean market late.
 U.S customers not wanted to spend time, it takes to shop in
hypermarkets.
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17.  In U.K it did well with sales of food item but not on durables.
In Mexico, it met with established Wal-Mart.
In both Hong Kong and Chile, unable to build enough store,
needed to compete with existing competitors.
 Partnered with Gigante, but lacked in sufficient resources to
expand rapidly and later sold whole operation.
In Japan, it established operation without partner and lasted only
four year before selling out.
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19. STRENGTHS
 Carrefour is largest hyper
chain market in terms of
size.
 More than 50% of sales
comes from France.
 Large network of
discount, grocery,
convenience and cash and
carry, hypermarkets.
WEAKNESSES
 Weak position in Asian and
Middle East countries.
 Weakness its own brand
sales.
 Taking too much time in
opening new stores.
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20. OPPORTUNITIES
 Joint ventures and acquisition
for more expansion.
 Reduce operating cost and
Improve sales performance.
 Research in marketing area to
understand the dynamics of
different segment.
 They can even mark their
presence in e-commerce.
THREATS
 Wal-Mart low prices is the
biggest threat for Carrefour.
 New player entering into the
retail industry.
 Facing difficulty to
understand the dynamics of
countries.
 Slow expansion outside the
France may allow the
competitors to snatch away
the market share. 20

21. Why would another company want
to partner with Carrefour?
 Carrefour brings to a partnership expertise on store layout
clout in dealing with global suppliers. Example “Most Awaited
Month”.
 Direct e-mail link with suppliers.
 Ability to export unique bargain items from one country to
another.
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22. CONCLUSION/SUGGESTIONS
 It cannot become worlds largest retailer until or unless it
spreads its winds in the US and UK market.
 May be expanding retail operations in too many countries and
will not be able to build sufficient presence in each to gain
necessary economics of scale.
 This company must maintain its integrity in the market by
continuing its progress with…
 great services
 extensive move in planting more companies and mergers
throughout the world
 providing products that are not only great quality but
affordable pricing. 22

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