This case won the second runner up prize in the 2006 John Molson Case Writing
Competition, organized by John Molson School of Business, Concordia University,
Montreal, Canada.
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Case Details:
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Price: |
| Case Code |
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BSTR246 |
For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges
ThemesInternational Business | Globalization Business |
| Case Length |
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30 Pages |
| Period |
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1995-2006 |
| Pub Date |
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2007 |
| Teaching Note |
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Available |
| Organization |
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Carrefour |
| Industry |
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Retail |
| Countries
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China |
Abstract:
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The case discusses the entry and expansion strategies of French retailer
Carrefour, in the Chinese market. Carrefour began its Chinese operations by
forming joint ventures in the year 1995. The company entered into direct deals
with the local governments of various provinces in China to get the approval to
set up its stores. By the early 2000s, Carrefour had emerged as the largest
foreign retailer in China. The company considered China to consist of several
small markets instead of one large market, and accordingly employed strategies
for operating in the country. Most of the products sold in Carrefour stores were
procured from China. The store formats, location, and the products sold were
customized according to the local preferences, and the store managers were
empowered to run the stores according to the local requirements.
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The case also highlights the challenges faced
by Carrefour in China. It discusses the competition that the
company faces in China especially after Wal-Mart's acquisition
of Trust-Mart. The case includes a note on the Chinese retail
industry.
Issues:
» Study and analyze the entry and expansion strategies of Carrefour in China
» Evaluate the strategy of operating in China through several joint venture
partners
» Examine Carrefour's expansion strategy into China, where it considered the
country to be several small markets rather than one huge market
» Understand how Carrefour brought changes in its store formats and operational
methods to cater to the needs and preferences of consumers in China
» Examine how Carrefour implemented the localization strategies in China
» Study how Carrefour achieved a balance in implementing its global retailing
best practices and customizing some of them to suit the needs of Chinese
customers
» Study the supply chain management practices of Carrefour in China
» Examine the challenges faced by Carrefour in expanding its business in China
» Gain insights into the growth and development of the retail industry in China
» Examine the regulations and their implications on the Chinese retail industry
Contents:
Keywords:
Carrefour China, Globalization, International Business,
Localization, Retail Industry in China, Entry Strategies, Expansion Strategies,
Decentralization, Autonomy, Chinese Laws and Regulations, Store Management,
Supply Chain Management, HR Practices, Wal-Mart in China, Carrefour China,
Globalization
The 'Great Mall' of China - Next Page>>
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