View
215
Download
0
Tags:
Embed Size (px)
Citation preview
Carrefour
Chase KukuchkaQian Liu (Olivia)
Yang Wang (Doris)Fengliang Wu (Aaron)
Corporation Introduction
Carrefour is the French word for crossroads Based out of Levallois-Perret France Selling both groceries and nonfood items
including services as well as goods Originators of the Hypermarket First international retailer to enter the Asian
market
Corporate Profile
Worlds largest retail chain with over 15,000 stores worldwide employing around 495,000 employees in 2009
Worlds third largest retail chain in terms of profit and the second largest in terms of total revenue
Carrefour is a publically traded company with 3.52 billion shares
Ranked 25 in the Fortune Global 500 for 2009
Company History
Company was founded by Marcel Fournier and Dennis Defforey
Free service was the concept they chose for their new store
The first Carrefour opened in 1957 in the French city of Annecy
Beating the competition with a basement
opening
The Hypermarket
The first hypermarket was opened on the outskirts of Paris in 1963
Combination of a supermarket and a department store
Must have at least 150,000 square feet of floor space
35% of the floor space must be used to sell nonfood goods
Today Carrefour operates over 200 hypermarkets in France alone with over 1,200 worldwide
SWOT Analysis
Strength Strong brand awareness Focus on competitive prices
Weakness Lack of a deep perception of the consumer
behavior Deterioration relationship with local suppliers
SWOT Analysis
Opportunity
Supply more types of stores in areas where it already has hypermarkets
EEU reveals a steady potential of sales for Carrefour
SWOT Analysis
Threat Legislation requires the food wholesalers to offer
the same prices to all the retailers promulgated by France government
Powerful retailers in E-commerce industry
Global Expansion & Challenges
0
1000
2000
3000
4000
5000
6000
7000
1392
2949
6475
4698
120
Figure 1 the Number of 5 Types of Stores
Hypermarkets
Supermarkets
Hard Discount
Convenient Stores
Cash&Carry
Overview 15,634 stores!
Global Expansion & ChallengesGlobal Comparison of Tesco, Wal-Mart, & Carrefour
WalmartCarrefour
Tesco
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
8500
15634
4813
40821
12061
8775
Countries
Store Number
Revenue/10 million
Global Expansion & ChallengesSecond priority: G4 countries
(Belgium, Italy, Spain, & France)
Overview First Priority: France
Third Priority: New merging countries
Global Expansion & Challenges
Success Model of Carrefour
Vast demands
Bargaining Power
Low prices
Vast sales
Virtuous Cycle
Global Expansion & Challenges
Failures
Reason in the US: fierce competition Reason in Hong Kong: localized laws and
competition Reason in South Korea: consumer behavior
Founded Founder Headquarters Products Revenue Employees
CarrefourAnnecy, French 1957
Marcel Fournier Denis Defforey Jacques Defforey
Levallois-Perret, France
Discount, grocery and convenience stores, cash and carry, hypermarkets
US$119.85 billion (2009)
over 495,000 (2009)
Wal-MartRogers, Arkansas, U.S. (1962)
Sam Walton Bentonville, Arkansas, U.S.
Discount Stores, Supercenters, Neighborhood
US$408.21 billion (2009)
2,100,000 (2009)
TescoEast London(1919)
Jack Cohen Cheshunt, United Kingdom
Groceries, consumer goods, financial services, telecoms
US$100.29 billion (February 2010)
440,000 (2009)
Casino 1898Geoffroy Guichardin
Saint-Étienne, France
Discount, grocery and convenience stores, cash and carry, hypermarkets
US$42.91 billion (2009)
152,380 (2009)
Competitors
$26.59 billion
$197.00 billion
$34.27 billion
$7.44 billion Market Capital
Carrefour
Wal-Mart
Tesco
Casino
Industry Analysis
Retail Industry
9.53%
32.27%
6.94%
2.97%
Market Share
Carrefour
Wal-Mart
Tesco
Casino
Future Trend Reduce price and strengthen process efficiently E-commerce and online retailing(non-shop):
presents about 2.7% of total retail industry revenue
Small single-store and independent retailers are forced out of the markets
Product cycles get shorter
Industry Analysis
Industry Analysis
Global Issues
2007 Credit Crunch Government regulations Cross-cultural risk, country risk, currency risk
and commercial risk Food security
Recommendations
Short-term Recommendations
Giving Back to the Community Improved Employee Moral Using Products Made Locally
Recommendations
Long-term Recommendations
In-depth research before entry Invest more to build the brand recognition Enhance its perception of the market and the
customers’ demand for their products