Business strategy: Carrefour
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Carrefour is a French retail chain that stands second internationally. It is a just a step behind the American retail chain, Wal-Mart. It was established in 1959 in Annecy, it quickly became a small group and on 16 June 1970 , Carrefour entered the Paris Bourse. (CAC 40).Today, it has outlets in Europe, South America and Asia (among others). This chain functions through local partnerships.
We will first present an internal analysis of the group, followed by an external analysis and then we will study its globalization strategy.
I) Internal strategic analysis
1) Functional Analysis: Marketing Mix
A marketing mix is characterized by the 4 Ps i.e. Price, Product, Place (distribution) and promotion (communication).
Strengths: Its pricing policy is based on the CPI which is an index of consumer prices. The group has implemented a strategy of varying prices that depend on the types of deals that Carrefour implements:
- Maximum discount represents a saving strategy with low-end products that are sold at a low price. This is experiencing the development of particular problems that are related to the purchasing power of households.
- Shops that set rather high prices for products do not necessarily guarantee quality. (Mid-range policy)
- Hypermarkets and supermarkets offer good quality products at relatively low prices. (the higher value for money strategy)
Weaknesses: The battle with prices that is being waged by major retailers depends on the margins. Carrefour has lost some of its market share in recent years and this struggle with its competitors will make recovering its shares difficult.
Tags: Analysis of Carrefour strategy; cross-sectional analysis; business strategy