Marketing Strategies final paper & PPT

CARREFOUR COMPANY PROBLEM AND SOLUTION 1

Carrefour Company Problem And Solution

New England College

Syamsree Gannamani

11/08/20

CARREFOUR COMPANY PROBLEM AND SOLUTION 2

Introduction

Carrefour Company is among the largest French multinational company. It was started in the year 1956 and has an average of 1,452 chains of hypermarkets worldwide. Carrefour Company has the second-largest revenue base globally as well as it is the third profit-making organization worldwide. Its headquarters are located at Levallois-Perret in Paris. Nevertheless, with all its success in terms of revenue and profit, Carrefour Company encounters some challenges such as competitiveness and strategy, productivity, product and service design, and others. In this paper, I will discuss and identify the competitiveness and strategy problem that faces the Carrefour organization and its possible solution (Domański, 2020).

Competitiveness and strategy

Competition is a key impact in the world of commerce. Wal-Mart and Tesco are the main competitors of Carrefour Company. Wal-Mart has managed to beat Carrefour in terms of collecting revenues globally. Carrefour is also beaten by both Wal-Mart and Tesco in terms of profit margins. Hence Carrefour chains must admit that it has a challenge in competitiveness and establish a plan to solve it.

Each organization in the market should strive to beat its competitors targeting to remain relevant to the clients as well as investors. Most of the challenges which might have reduced the competitiveness of the Carrefour organization comprises of its May 2009 saga in France. This organization was blamed by the government of France for violating approximately 2500 business rules. For instance, it was said that the enterprise operations fail to follow wait and standardization rules. The meat yields in their stores had shrunk by less than 15 % of its weight which is regarded as a violation of rules.

The most crucial theory in the analysis of competitiveness and strategy is a competitive advantage theory. Competitive advantage theory can be applied in the case of the Carrefour organization. This theory was written in the year 1985 by Michael Porter. The theory claims that, in any economy, cheap labor is ubiquitous. The study further explained that organizations can attain a competitive advantage when it gains the potential to out beat the competition in markets. Carrefour organization can therefore develop platforms to outdo its competition.

Competitive advantage theory stresses that economic development is attained when a company emphasizes goods and services that value by premium. Regarding this theory, an organization can manage to outperform its competitors if it is capable to get enough natural resources such as a cheap source of power, highly skilled manpower. Carrefour Company had been accused of employing unqualified workers. May be there is the cause of the below standards meat saga. The operation leader of the hypermarkets in France should have realized that the baby formula was not preferable past its expiry date if he was highly skilled. Such personnel limit organizations from attaining competitive advantage.

Some studies suggest that the use of modern techniques specifically the adoption of modern data communication techniques can be of advantage to the organization (Xu, 2014). Other organizations adopt the use of robot technology to improve their yield as well as success. Competition makes an organization establish well attributes that put it is on top of other organizations in the competition. As a result of these undertakings, the organizations develop a competitive advantage by developing new tactics which are not in the process of being adopted by any other company (Rocha, 2015).

A Marketing Plan for Carrefour.

Carrefour should attack new markets

In the marketing plan, the management team of Carrefour should identify new markets where the organization could enter and also achieve a foothold before its competitors take action, this could also be considered as an advantage of first to market. Carrefour can specifically adept at the growth of marketing planning to spot any markets that emerge and it could be as an outcome of the shift of population, innovations of technology, or even change of consumers' preferences, and it could be changed into new products (Soria López, 2017)A marketing planning that is effective needs the ability to choose possibly utmost profitable opportunities between the various available opportunities

Properly express the advantages

A clear marketing plan involves a well-crafted message presenting the competitiveness and strategy advantages in a way that is brief and compelling. Therefore Carrefour could select extremely effective messages the reasons its products are the best solution as compared to the ones provided by its competitors and also why they are the ideal solution. Consumers never contrast shop with dynamics like price since there is no solution of competitors that is seen like being in a similar class

Carrefour should expand its channels of distribution

I believe that small businesses can probably raise the odds of creating a sale to aim consumers through raising the chances for the consumers to view the products. Therefore Carrefour should add its channel of distribution. When the company is preparing a marketing plan the management should identify every likely distribution channel that it can use as well as market possible for everyone. Once Carrefour has its products largely available it is a great way through which it builds its brand awareness which is a major component of competitiveness and strategy

Emphasizing its consumer service

Carrefour should involve strategies for increasing the level of consumer service. If the company keeps their consumers content products it will both replicate the business from those consumers as well as the chance for delivering the word of mouth endorsements to other consumers that are more potential. If the company turns consumer services it will accomplish competitive advantage by methods like addressing their issues promptly, taking time to be aware of consumers as persons as well as searching for means through which the company will improve the provision of its products and services, also they need an individual who is available for speaking with them. We all know that strategies of businesses of being available and working together with the consumers could develop a formidable benefit comparative to its bigger competitors and their occasionally impersonal tactic to services

Recommendation

So that the Carrefour Company to win the market with completion and strategy we have seen that it can undertake numerous initiatives which could also include employing qualifies and talented human resource base. In case there are errors that Carrefour has been blamed for they could get rid through talented personnel.

So that the Carrefour company could compete properly with other organizations is human resource should be fortified with skills of modern technology for instance temperatures of refrigeration can simply be regulated by computer technology. Evaluating and also labeling could as well be operated by technological tactics so that no errors can occur. Items barcode in the stores must show and also recap operations officers the date of expiry. Consumers as well as stakeholders will need to purchase and also invest in an organization containing competitive employees and the one that has adopted current preservation technology (Mezquita Rodríguez, 2015).

References

Domański, R. &. (2020). Omnichannel of private label grocery products in Tesco and Carrefour retail chains on the Polish market. Ekonomski Vjesnik, 33(1), 191-202.

Mezquita Rodríguez, A. (2015). Marketing plan for Ausiàs Bookshop.

Rocha, M. V. (2015). The sale of the Portuguese operations of Carrefour (Doctoral dissertation).

Soria López, D. (2017). Marketing plan of Spontex.

Xu, L. X. (2014). Wal-Mart and Carrefour's Supply Chain Management Strategies in China. International Journal of Business and Management, 9(7), 155.