Business Strategy of Carrefour
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Content Page
1.0 Executive Summary
The rapid growth of emerging market economies in Asia have seen a marked increase in disposable incomes leading to a considerable increase in confidence and consumption. The Asian Financial Crisis in 1997-98 that caused abrupt withdrawal of international capital proved to be a temporary setback and ground has been regained where it had been lost. Today, Asia shines in the global economic landscape and looks set to take over the U.S. as the new engine of growth in the global economy. In a growing economy, convenience matters and higher education as well as urbanization have lead Asians to embrace Western brands with gusto. The stores with the biggest advantage in terms of consumer preference are those with a wide variety of products to offer as was the case with hypermarkets, supermarkets and online retailers.
Nevertheless, many countries in the region and elsewhere are experiencing severe economic difficulties as a consequence of the current turmoil in the world’s financial markets. The spillover effect of this turmoil has not spared the retail industry. A decline in foreign investment and a possible increase in unemployment or political turmoil in neighboring countries will all affect disposal incomes negatively among Asian consumers and certainly undermine retail sales negatively.
However, times of great challenges are also times of great opportunities. In the midst of great uncertainty and increasing volatility in the overall business climate, Carrefour, the world’s second largest retailer aims to accelerate growth. Through a strategic lens, we seek to review and identify the various key areas that Carrefour need to focus so as to gain a stronger foothold in Asia.
1.1 The Research Background
The purpose of the assignment is to analyze the business environment of Carrefour and ensure strategic integration of its people and policies with the aim of bringing more clarity to the company’s marketing objectives
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Content Page
1.0 Executive Summary
The rapid growth of emerging market economies in Asia have seen a marked increase in disposable incomes leading to a considerable increase in confidence and consumption. The Asian Financial Crisis in 1997-98 that caused abrupt withdrawal of international capital proved to be a temporary setback and ground has been regained where it had been lost. Today, Asia shines in the global economic landscape and looks set to take over the U.S. as the new engine of growth in the global economy. In a growing economy, convenience matters and higher education as well as urbanization have lead Asians to embrace Western brands with gusto. The stores with the biggest advantage in terms of consumer preference are those with a wide variety of products to offer as was the case with hypermarkets, supermarkets and online retailers.
Nevertheless, many countries in the region and elsewhere are experiencing severe economic difficulties as a consequence of the current turmoil in the world’s financial markets. The spillover effect of this turmoil has not spared the retail industry. A decline in foreign investment and a possible increase in unemployment or political turmoil in neighboring countries will all affect disposal incomes negatively among Asian consumers and certainly undermine retail sales negatively.
However, times of great challenges are also times of great opportunities. In the midst of great uncertainty and increasing volatility in the overall business climate, Carrefour, the world’s second largest retailer aims to accelerate growth. Through a strategic lens, we seek to review and identify the various key areas that Carrefour need to focus so as to gain a stronger foothold in Asia.
1.1 The Research Background
The purpose of the assignment is to analyze the business environment of Carrefour and ensure strategic integration of its people and policies with the aim of bringing more clarity to the company’s marketing objectives
References: ----------------------- High Market Growth Rate Low Low High Relative Market Share BCG Analysis over Carrefour Sales