Retailing Industry Carrefour Everyday Low Cost

Five forces : http://browse.feedreader.com/c/MBA_Tutorials/61146429

Reference: Chinomona, R and Sibanda, D. (2013).: When global expansion meets local realities in retailing: Carrefour's global strategies in Taiwan: International Journal of Business and Management; 8(1), 44-59

Carrefour in Taiwan Competitive Position and Analysis

Aim: assess the current competitive position of the firm and to make recommendations on how to improve that position

1 identify the industry of the firm you are analyzing. Discuss the strategic groups that constitute the industry and identify major competitors within each strategic group. Who are the major competitors in the industry? How do they compete? Has the industry structure changed? For example, have barriers to entry become less significant, and if so, why? What is the nature of competitive rivalry in the industry? consider the effect of each of the five competitive forces in the firms industry. In addition, analyze how factors in the general environment have been affecting this industry. You may limit your analysis to those factors that are most relevant to your industry. You must explain, though, why certain factors are more relevant than others. Decide which factors are most relevant to your industry, and focus on those. How have these factors influenced any or all of the five competitive forces you analyze?

Five forces Carrefour in Taiwan Rivalry: Exisitng competitors are : Shin Kong Mitsukoshi Department store, Pacific Sogo Department Stores, A-Mart( Previosuly know as Geant), Wellcome, PX Mart(Quan Lian Welfare Centre). (Supermarket, hypermarket, department store) Threat of entrants: Big fund is required , so not that many new entrants Substitute: Plenty of subsittues ( grocery stores, traditional open market), people who only purchase small amount of goods wont go to hypermarket like Carrefour (grocery stores) Power of suppliers: Carrefour changed the traditional retailer-supplier relationship in Taiwan, and successfully
transferred some of the costs which retailers usually bore, like advertising costs, loss on account of damaged goods, etc., to the suppliers..

Buyers: Due the convenience in Taiwan, people buy grocery at any stores , but the key is ; Low price

Factors in general environment affecting the industry

Environment Analysis Demographic trend (market potencial and customer needs) Everyday low price
Localization Strategies After Carrefour realized that store formats that were successful in other countries might not be successful in Taiwan, it set up stores that often had more than one floor, unlike the western style hypermarkets, which

Social Cultural Influences (market potencial and customer needs)

Store Management In Taiwan, Carrefour decentralized store management, and treated each store as a profit center. The stores were headed by store managers, just as in other countries. However, in Taiwan, Carrefour's store managers were given more autonomy compared to

usually occupied a single floor...

their European counterparts... Because: Chinese food (local food)

Often located as city centre ( as most of ppl living in town centre)- therefore has to pay more cost (young generation)telecome

More than 90% percent of Carrefours products were purchased from within Taiwan. Contracting local producers was meant to provide products that fit customers preferences or Taiwanese ethnocentric tendencies. This was meant to provide products considered to be of national identity but yet provided in Western style hypermarkets. Big Sales: Western v.s Taiwanese (seasonal sales) planned promotions based on stock, country holidays and customs Taiwanese go to open market: So.. shops-in-shops adopted fresh-market style that sold locally desired vegetables, fishes, fruits, meat and seafood that are populary associated with the traditional Taiwanese wet market selling models and yet providing a better shopping environment for its customers.

Macroeconomic Impacts Excert a significant impact on firms value proposition: Everday Low Price :
the 90% localization strategy of supply chain reduced operational cost and therefore, the glocal strategy made it possible for Carrefour to offer the lowest possible price in Taiwan. While the coupon system can be Own brand policy: Creefour Product

Political Legal Pressure Land Taiwan retailing policies

SGS 2 2 SGS

space limitations available for hypermakets business and government regulations : operating small hypermarkets or large supermarkets that were limited in size to 4300-5600 square metres. Government of Taiwans call for people to conserve electricity: by purchasing power saving electrical gadgets:

Carrefour offered special discount coupons on home electronic gadgets nationwide.

Technological Development
.

Global Trade Issues Analysis of impacts of globalization and international governance bodies on industry competition ( Ex:

2Analyze the firms capabilities. Are they distinctive, and difficult to imitate? Do they create a
competitive advantage? To what extent is this competitive advantage sustainable? Are the firms capabilities a good fit with the insights revealed from your analysis of the industrys five forces, the changing business environment, and the position of the firms competitors? Why or why not?

3. Use your analyses to identify the current competitive position of the focal organization. How desirable and sustainable is that competitive position? Based upon your analysis, characterize the overall attractiveness of the organizations competitive position within the industry. As much as possible, please provide data to back up your points. Use the resources available to you to help support your analytical insights.

4Ultimately, make a recommendation for a particular course of action to help improve the organizations current competitive position. This recommendation should flow from your analysis and be supported by facts and data when possible

Organic Food: Branded Product: less attractive as Taiwanese are in pursuit of the house hold stuff in quality Bad quality branded product Still a weak showing from own-brand

Introduction