The
following categorical analysis under SWOT is apt for understanding Carrefour’s
possibilities in the markets of South Africa in particular.
S (Strength):
Carrefour’s biggest strength to dwell in the South African market is its French
Connection. Since South Africa was once a French colony, Carrefour can very
well establish its sophisticated French influence over the South African
population and marketing will be easier for the company.
The
next very significant point is the partnership of CFAO with Carrefour. This
will increase the business scopes for the company and will offer it an
extensive strategic planning to enter and sustain in the market on prolonged
basis (Fresh Plaza, 2013).
W
(Weakness): Carrefour has got just
one weakness with its reputation. It is the increased
competitive edge after Promodès acquisition. This has weakened its sales and market share in countries Brazil, Spain and above all its hometown France (Funding Universe, 2005).
competitive edge after Promodès acquisition. This has weakened its sales and market share in countries Brazil, Spain and above all its hometown France (Funding Universe, 2005).
O (Opportunity): Since
there is none other than WalMart, South African market scenario to compete
Carrefour; it actually attains open highway for initiating trades in the
retailing sector.
T (Threats): There are many threats that
Carrefour must face in order to get into the markets of South Africa. The very
notable one is that of that lack of appropriate mode of distribution and enough
real estate space. Along with this the issues of red tape, instable political
status and slow infrastructural venture are going to hinder it’s business
strategies for sure.
7Ps
Analysis of Carrefour
Theoretical
approaches as noted under 7Ps, which are - Product, Price, Promotion, Place,
Physical evidence, People, and Process; will be analysed in reference to the
South Africa market entry of Carrefour.
This will be analysed in relation with the products and services of the
company.
Product: the
most important thing about this P is that Carrefour must offer the people of
South Africa good quality of products and services, but at the same time the
same must suit their temperament and choices.
Price: every
offered service or product must be within the budget of South African Customer.
The manufacturing and the retailing units must understand the preferences to
buy things in accordance to price tag.
Promotion: right
kind of media exposure is mandatory. Assistance and collaborations with
television, especially local news media and newspapers, instead of any social
networking, are going to be of great help for promoting the brand of Carrefour.
Place:
launching of the brand over media and establishment of the malls in squares of
down town areas of Johannesburg and Cape Town can offer exclusive marketing
facilities to the public (SACCG, 2011)). To get more accessibility of the
relevant population, the company must lay emphasis on selecting locations that
are close to market and free of hustles and bustles of the city life.
Physical evidence: to
offer a good impression over the population of South Africa, it is necessary to
create an ambience within the mall to suit the cultural, social and traditional
lifestyles of these people. As for instance, arrangement for family car parking
zones, eat outs and some gaming zones for the kids.
People: concerns
related to the employment structure, culture, management and customer services
must get well synchronised in accordance to the consumer psychology of South
Africa. Proper training to the customer care executives and management staff
must be arranged to meet the aforementioned business objectives.
Process: this
P is about the service industry and the way the offered-services are consumed.
In this matter, Carrefour must have a strategic approach that can support the
provision of offering right kinds of customer services to the relevant and
targeted customers. These strategies must be categorised in accordance to the
age and financial status of the consumers.
Sources
Fresh
Plaza (2013) Carrefour is taking early advantage in Africa. 8/13/2013 http://www.freshplaza.com/news_detail.asp?id=112128
[Retrieved 5th September, 2013].
Funding
Universe (2005) Carrefour SA History. International Directory of Company
Histories. http://www.fundinguniverse.com/company-histories/carrefour-sa-history/ [Retrieved 7th September, 2013].
SACCG
(2011) Doing Business in South Africa - 2011 Country Commercial Guide for U.S.
Companies. South Africa Country Commercial Guide 2011. U.S. and Foreign Commercial Service and U.S.
Department of State, 2010.
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