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Explanation of external environment of Carrefour in Asia

Having completed a full legal restructuring of its operations in China, Carrefour is preparing for rapid expansion in the country. China has the region's highest GDP growth rate, an enormous population, and disappearing trade barriers. Opportunities in the country's booming retail sector require immediate attention for Carrefour to stake a greater share of the market before other foreign competitors, who are amassing at the borders, make headway. Your management consulting firm has been retained to complete an assessment of Carrefour's international strategy, particularly as it relates to the Asian region.

Your report must THOROUGHLY address the following key strategic issues:

1. Conduct a complete study of the external environment in Asia, and identify the critical strategic factors in each of the following areas:

A. The General Environment
B. The Industry Environment
C. The Competitor Environment

2. Based on the analysis, what advice can you give Carrefour's management to improve the company's successful expansion into China?

3. Recommend an integrated and coordinated set of commitments and actions which will exploit the company's core competencies, sustain growth, and ensure maximum performance and value for shareholders.

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Solution Preview

Carrefour, the second largest mass retailer in the world, has expanded its presence in the Asia Pacific region and competing head-on with Wal- Mart and other Western and Asian mass retailers to capture a significant position in the region. The case retraces the historical development of the expansion, starting with an entry into Taiwan in the late 1980s. Carrefour's approach to internationalisaion is described as well as its presence in the various countries of the Asia pacific region.

The General Environment:
The political environment in Asia is such that the countries of Asia have used political means to achieve recognition in the Western countries. It is because of this reason that there is political stability in Asia. The economy of the Asian countries is growing at a faster pace than that of the developed countries. These countries want to compete with the developed countries. The social factors favor western products and culture. More and more people in Asian countries speak and write English. Moreover, products made in the developed countries are valued in Asia. Technological advancement is on two fronts, Asian countries have adapted to a great degree information technology. On the other hand these countries counterfeit technology from the developed countries.

The Industry ...

Solution Summary

Explanation of external environment of Carrefour in Asia (China). Discussed are the international strategy of the company after restructuring in China.