OR Q 2 CHALLENGES TO CAREEFOUR FROM WALMART s OR Q 3 CAREEFOUR STRENGTH TO OVER COME THE CHALLENGES FROM WALMART On June 15 of 1963, Carrefour opened a shop that the French had ever seen before.The surface of the shop was 2,500m2, and it had 400 parking spaces as well. It was the biggest supermarket in France at that time. The French named it hypermarché´ (hypermarket), which means ³bigger than traditional supermarkets. Learning from the experience of American experience in retail development, Carrefour realized that the importance of No Parking, No Business´.

Carrefour adopted the strategy of low-margin´ to attract the customer. The varieties of goods and price discount really had much influence on the French traditional retailers at that time. For Carrefour, the hypermarket is not merely the breakthrough of his selling skills, but also symbolizes as French Innovation .

1) Strategy of internal growth: Includes business-level strategy and corporate level strategy. cooperation and franchising. Carrefour continues to step into his expansion strategies. Carrefour cooperates with his competitors by joint venture in France. 2) Strategy of cooperation: In order to increase its market share and reduce perceived risk.Triple Strategy After the success of Supermarket. 3) Strategy of franchising . We call it triple strategy´: internal growth.

3 million associates worldwide and almost 5. From then on. Now. Compared with Wal-Mart and Carrefour competitive advantages are completely different. Carrefour has expanded steadily. 3.For Carrefour.000 stores and wholesale clubs across 10 countries. Wal-Mart has been the most threatened competitor. Wal-Mart is a global company with over 1.Carrefour has invested outside France since 1969 and the first country that it expands abroad is Belgium. and gradually this will threaten Carrefour global reach.Carrefour Challenge from America 1. 2-The most difficult global reach of Carrefour is confronted by Wal-Marts challenge. Carrefour makes its half of sales outside of France. .Today. Wal-Mart has ambition to step into his global expansion. the worlds second largest retailer. 4. Carrefour is 1st in Europe and the 2nd retailers in the world.

 Website and toll free number help the customer to register their compliance so that an immediate resolution can be taken by CF. and goods return and exchange facility within 15 days etc.  Customer details were collected at the point of sale.  The merchandise was neatly displayed to help customer to easily find the commodities they needed. Following are some of the measures taken by Carrefour to make the customer visit the store frequently. free shopping for the everyday lucky customer.  To increase the loyalty. What were the measures taken by Carrefour to motivate customer to visit the store frequently? Answer: Customer retention is very important in any of the business. . free parking. When it come to service marketing this factor become more crucial. additional points toward a gift in a prize catalog. further data analysis was done to enable CF to identify and classify customers on the basis of customer attributes combined with customer behavior.Question 2: Retaining the customer by implementing various loyalty programs is ongoing program in service organization. entertainment offers.  The spacious and the comfortable shopping environment help the customer to spend more time in the store. which was based on the loyalty card used by the customer. customers using the SpesAmica cards were given extra discounts. and special coupons. Carrefour has done a lot to make the customer loyal to the company.  CF also offers supplementary services like free delivery for big appliances.  In 1995 they introduce a loyalty program called SpesAmica.

2-sIn 1999. Carrefour introduced Spectrum 24R wireless local area network infrastructure and hand. Carrefour tied up with HP in implementing Instant Support Corporate Edition. which helped to automate help desk services.Question 1: As a retail store. This system helped improve both productivity and inventory management. after that they subsequently expanded into other countries also. This resulted in the employees becoming more self.sufficient and an overall savings of 50.000 Euros annually which translated into lower prices for the customers. Carrefour launched self. Further. the system automatically tracked technical problems through web chat so that the IT department could look into it immediately without depending on the help desk person’s capabilities to resolve the problem. 2-Carrefour concentrated on providing an inspiring atmosphere for its employees by initiating various training and reward programs.held computers in its 68 stores in Asia. reducing telephone usage by 7%.service hypermarkets throughout France for the better customer service. It provided an average of 1. This technological upgrade helped online registration of incidents. Answer: Following are the steps that Carrefour took for improving its customer service- 1-In the 1960s. 1-After that. how has Carrefour gone about improving its customer service? Discuss in the light of improvement in business processes and employee attitude.4 hours .

etc. free parking. free shopping for the everyday lucky customer. As reward measures. The program helped employees learn to understand the customers’ perception and to develop an enthusiastic attitude. websites. toll free numbers. Besides. 3-Carrefour also conducted employee satisfaction surveys from time to time and these surveys were used as a basis for improving the work environment.training per employee throughout the world in 2003. catalogs. 4-Carrefour stores are spacious and offer a comfortable shopping environment. employees were awarded bonuses of one or two months ‘salary in case of increased sales. 7-Carrefour was providing information to the customers through information desks. 6-Carrefour also offered supplementary services in its stores in China. . 5-Carrefour also introduced loyalty program. Customer satisfaction surveys were also undertaken to improve service levels. etc.free delivery for big appliances. goods retirn and exchange facility within 15 days. the merchandise is neatly displayed to help customers easily find the commodities they needed.

grocery and convenience stores. cash and carry.  Employee base of approximate 495.000 around the globe  Pioneer in hypermarkets especially in France. OPPORTUNITIES  Joint ventures and acquisition for more expansion  Discount stores development  Improve sale performance  Reduce operating cost  Research and development required in marketing area to understand the dynamics of different segment.  Ranked third in terms of profit in the industry after Tesco and Wal-mart.  Second Highest revenues in the retail industry after Wal-mart.  Has not been able to attract Japanese customers  Weak own brand sales  Poor E-commerce performance. hypermarkets.  Joint ventures in different countries  Large network of Discount.  Maintain better labor relations.  Strong brand in the world of retail industry.  More than 50% sales of the company come from France.  Weak position in Asia and Middle east countries  Labor relations  Taking too much time in opening new stores. .  Operating in 31 countries.SWOT ANALYSIS OF CARREFOUR: STRENGTHS  Carrefour is the largest hypermarket chain in terms of size. WEAKNESSES  Reduce operating expenses.  Selling number of products with its own private brands.

 Terrorism and instability in few countries of Asia and Africa.THREATS  Fierce competition  Wal-mart low prices are the biggest threat for Carrefour.  New player are entering into retail industry  Facing Difficulties to understand the dynamics of Asian and Middle East countries. .  Slow expansion outside France may allow the competitors to snatch the market share.

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