Carrefour Case Study

For a company to remain profitable, it has to constantly think about how their products will meet the consumers’ demand due to technology advancement. With the advancement of technology, companies can access a vast amount of information that they must use well to remain ahead of their competitors who might also have the same information.

The political aspects can define the level of the company operation and the market where they can establish their business. With the acceptation of the concept of globalization, many governments around the world have granted foreign investors to invest and take advantage chance of their economies. This means that the protection strategies used in the past slowly disappear. Ralph Lauren could, therefore, drive in different countries and establish comfortably its

Burberry need to scan their market segments in order to gain the most competitive advantage. Pestle analysis looks at the political, economic, social, technological, legal and environmental factors that affect an organisation providing a ‘comprehensive list of influences on the possible success or failure of strategies’ (Johnson, Whittington, Scholes, 2011). However, the three main changes that focused on in this essay are Economic, Social and Environmental factors. The economy within China is currently very stable; being a part of the 4 fastest growing economies in the world (BRIC: Brazil, Russia, India, China), it has made large strides in recent years in the business and industrial sector. , the country

Conclusion: Overall, the global luxury goods industry still has high potential to growth sustainably in the future. Since the market of this industry is worldwide, companies’ revenues will not largely affected by a single country or region. The important thing is to keep the balance of expansion between different countries. Companies should also be carful about increasing production effectiveness while retain the heritage value of the brands.

Competition is a fundamental factor in whichever industry. Hill and Jones (2007) note, “the power wielded by suppliers, the influence of the customers, and the threat posed by new and existing competitors determine the profitability levels in a company”. Besides, the forces support the decisions made by firms in order to improve their competitive position. In this regard, it is essential to review these forces either individually or as a combination to arrive at an informed decision on the industry choice. Further, it is fundamental to note that a force is either classified as strong or weak and, as a result, is a threat or opportunity respectively.

In order to reduce Costco’s reliance on the US and Canadian markets, placing an emphasis on international expansion would not only lead to diversification, but also better profitability. While it is engaged in expanding internationally, an accelerated expansion strategy should be employed in order to tap into the high growth markets. The high growth markets of the BRIC nations as well as the growing East Asian markets remain relatively untapped and would provide an excellent opportunity for global growth. The rising middle income demographic in these markets would provide a sustainable customer base for Costco’s long term growth. In order to penetrate these markets, Costco would have to duplicate its success in warehouses located in Taiwan and Korea. This expansion, however, must be managed delicately as penetrating new markets comes with its own risks. Consideration needs to be given to the differences in cultural factors and the political and operating environment that exists within these markets.

The new hardware and software networking systems would also be beneficial to this organization because a database with a large storage capability as well as having a timely running process would improve day to day operations of this organization. However, important consideration would have to be given to improvements on security issues, focusing on unauthorized access detection via the Web and at the organizational level.

However, this approach is limited. Due to globalization, lowering cost of production and availability of information, the competition is more fierce some than ever in most industries, putting more pressure on companies and shrinking their profit margins. In this competition race, products and services

A profitable industry will attract more companies seeking the achievement of profits. If the entrance barriers are low and it is easy for these new competitors to enter the market, the firms already competing in that market will be under a higher risk of decreasing their profits, since more competition will lead to a rise in the market quantity produced, without an increase in consumer demand. This means that the prices practiced will drop and the profit faced before might not be the reality of those firms anymore. The Threat of New Entrants is one of the forces that shape the competitive structure of an industry. In ALDI’s industry situation, a high investment would be required for a new company to join the market, making the entrance barriers high and positively affecting ALDI in the long run. Besides, ALDI had built a brand and developed customer loyalty, which makes even harder for new competitors to compete. Loyalty is a value difficult for a company to build, but it is even more difficult for competitors to overcome it and change the consumer’s mind. Threat of New Entrants is definitely a force that has a positive impact in ALDI’s

Automated routine operations and streamlined provisioning allow avoiding excessive and time-consuming actions for IT staff, thus reducing their workload and minimizing the risk of errors. The easy-to-use Self-Service Web Interface gives users the opportunity to maintain their personal information themselves without involving IT staff. Operations on multiple

The losses, however, are felt not only by the earth that produces them, but also the businesses that purchase them. As part of a growing sense of eco-consciousness in the minds of consumers, the sustainability movement has provided opportunities for business to mend their practices. Companies like Loblaw Companies Ltd. in Canada and InterMarché, a French equivalent, are both acting on the up-and-coming consumer base.

Technology can be a rich source of competitive advantage for fast moving firms or a major threat for slow adapters

3. Centralized IT system for the affiliates with the rollout of new technologies outsourced –

In order to succeed today, organizations that are competing in global markets are increasing rapidly. The increased use of technologies such as the Internet, intranets, and extranets will definitely revolutionize how businesses will operate and how they will use computers to compete. The Internet and related technologies and applications have changed the ways companies operate their businesses processes and activities. For example, companies can network their offices and share data to be more effective and efficient. However, excessive use of the Internet, intranets, and extranets also create intense

This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr