Friday, February 15, 2013

Carrefour Case

Strategic Overview

hybridization is a major food for thought retail merchant with most of its operations in europium. It is much smaller than the surface of Wal-Mart. About 80% of Carrefour’s operations ar situated in Europe. This can be directly contrasted with Wal-Mart, which has slightly 75% of its operations in US. The way Wal-Mart and Carrefour competes are like a pair of international duopoly, i.e., Boeing and Airbus of the food sell market, except for the fact that 1) they seem to avoid direct meeting with each other and like to whoop it up the home tribunal advantage as much as possible, and 2) they are real not comparable in size. Given the slim circumference they have, we understand why they really want to stay off from each other.

It appears that Carrefour differentiates its operations through different photographic plate in sales area and mix of products. The same benevolent of strategy has been pursued by Wal-Mart, with a different broad of format. After all, they each have to adjust to the local conditions of Europe and US. The format that is suitable for Europe might not kick the bucket into the US context, and vice versa. In sum, the varieties of stores run by Carrefour and Wal-Mart differs in their product-mix and sales area, each aiming for different market niches.

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In contrast to Carrefour and Wal-Mart, Royal Ahold adopts a different strategy. It targets on the high quality end of food retail market, hence differentiating itself from major players such as Carrefour and Wal-Mart. The high-end, organic food market is probably one area overlooked by Carrefour and Wal-Mart. The competitive advantage of Royal Ahold can be summarized with two key words: high-end niche and economies of scope. This is in sagacious contrast with Wal-Mart, whose competitive advantage lies in its sheer size.

In sum, Carrefour is facing some strategic dilemma. It is not as big in size as Wal-Mart such that it could enjoy low cost advantage. It pricing strategy is greatly curtail simply because the...If you want to get a full essay, set it on our website: Orderessay



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