Case Study Of Delhaize

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Delhaize’s strategy is to concentrate its main activity on food distribution and develop it internationally through alliances and/ or agreements with local partners to favor long term growth. That is why Delhaize made an agreement with Salim group. The group Delhaize was looking for a third pole to develop its business and it chose the Asian Pacific Region because of its attractiveness. Indeed, in 1997, Indonesia was the fourth country in the world in terms of population, with 190 million inhabitants of which 10 million were living in Jakarta. Indonesia had a great growth potential at the time, the country was evolving quickly and its GDP was going up to 8%. This expansion led to a raise in the purchasing power of the inhabitants and thus, an increase in the number of potential customers. As a result, Delhaize targeted this emerging middle class, which had a growing interest for imported goods especially in the food sector. The real expansion of the food retail sector in Indonesia started in 1999, inhabitants of Indonesia were favoring imported food because of its quality and safety. So that is why, Delhaize “le lion” entered the…show more content…
Delhaize wants “to pursue a profitable sales growth and allocate human, financial and natural resources effectively to improve its cost position” (Delhaize, annual report 2014). To achieve that, the company put a strong emphasis on its worldwide network, which counted 3 402 stores in 2014. Volume and economy of scale One of the first cost driver that push Delhaize to internationalize is to achieve greater economies of scale. As Delhaize is a Belgian food retailer, the possibility to obtain high quantities’ supplies is limited because of the small size of the Belgian

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