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 .

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. cooperation and franchising. 3) Strategy of franchising . Carrefour continues to step into his expansion strategies. 1) Strategy of internal growth: Includes business-level strategy and corporate level strategy. We call it triple strategy´: internal growth.

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

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

Answer: Following are the steps that Carrefour took for improving its customer service- 1-In the 1960s. This resulted in the employees becoming more self. It provided an average of 1.Question 1: As a retail store.000 Euros annually which translated into lower prices for the customers.4 hours . 2-Carrefour concentrated on providing an inspiring atmosphere for its employees by initiating various training and reward programs. 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. This technological upgrade helped online registration of incidents. after that they subsequently expanded into other countries also. reducing telephone usage by 7%. This system helped improve both productivity and inventory management. Further. Carrefour launched self. how has Carrefour gone about improving its customer service? Discuss in the light of improvement in business processes and employee attitude. 1-After that.service hypermarkets throughout France for the better customer service. Carrefour tied up with HP in implementing Instant Support Corporate Edition. Carrefour introduced Spectrum 24R wireless local area network infrastructure and hand. 2-sIn 1999. which helped to automate help desk services.held computers in its 68 stores in Asia.sufficient and an overall savings of 50.

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

 Ranked third in terms of profit in the industry after Tesco and Wal-mart.  Operating in 31 countries.SWOT ANALYSIS OF CARREFOUR: STRENGTHS  Carrefour is the largest hypermarket chain in terms of size.  More than 50% sales of the company come from France. .  Joint ventures in different countries  Large network of Discount.  Second Highest revenues in the retail industry after Wal-mart. WEAKNESSES  Reduce operating expenses. hypermarkets. 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.  Employee base of approximate 495. cash and carry.  Strong brand in the world of retail industry.000 around the globe  Pioneer in hypermarkets especially in France.  Has not been able to attract Japanese customers  Weak own brand sales  Poor E-commerce performance.  Selling number of products with its own private brands.  Weak position in Asia and Middle east countries  Labor relations  Taking too much time in opening new stores. grocery and convenience stores.  Maintain better labor relations.

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

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