Carrefour's Strategy

3365 words 14 pages
| The strategy of Carrefour | |

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Summary I- Introduction 3 I- Historic 4 II- Characteristics of supermarket distribution 5 a) Porter’s five 5 b) PESTEL 7 c) SWOT 9 III- Strategies in France 10 IV- International strategy of Carrefour 11 V- The new markets and the future 12 VI- Suggested strategies 13 VII- Conclusion 14 VIII- Bibliography 15

I- Introduction

Carrefour was the first supermarket created in France and also in the world. For more than 50 years in the French landscape, it belongs to our everyday life. Since several years, we can notice than Carrefour has a real strategy of expansion, in buying other retail’s brand. What is the current and future strategy of Carrefour in France and in
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* Supplier Power

Supplier power is very low because suppliers need to be in Carrefour markets to get visibility and simply to sell their products.

* Competition

* Carrefour has a few French competitors Auchan, Intermarché, Casino and Leclerc and international ones like Wal-Mart.

They are not really competing on price because; in a situation of oligopoly (high demand and a few offers) it would be useless.

Sometimes, they are trying to catch the consumer attention with slogans about how low their prices are but it is not the main subject for their advertisement.

They are competing on the sales force, advertisements, strategy (local and international)… Moreover, each one of these brand has a special advantage. For example, Carrefour is known to have quality products.

* Threat of Substitute

* Proximity markets

In the 70’s people were all over the big retail store, but now, with the globalization there is a coming back by the public to the small shops.

The substitutes of Carrefour are all the kind of grocery stores, Auchan, Intermarché, Casino, Leclerc (and also Monoprix, Francprix etc.).

* E-commerce

Today in France, 70% of the population has an access to internet at home: more and more are buying products on internet making them delivered.

This is a strong competition

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