Contrast of Carrefour and Wal-Mart

1177 Words Apr 13th, 2012 5 Pages
Compare and contrast the strategies of Carrefour and Wal-Mart in the Chinese market

Since the American entrepreneur, Clarence Saunders, opens his first Piggly Wiggly store in Memphis, Tennessee, in 1916, the concept of self-service store has swept the globe. With the largest population in the world, China is expected to be the world’s biggest retail market which is now already the world’s fastest-growing market.( Anon, 2011:1) As the world’s first and second largest retail groups, Carrefour and Wal-Mart are one their way piling in. However, with 5000 years of traditional history and 30 years of planned economy, china has already formed its own market tradition. Though, the two giants both need to face the special Chinese market, in
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The two giants have already been in close contract with the Ministry of Commerce on the medicine retail business and affirming that world’s largest retailer’s distribution network will be covered by medicine sales (Anon, 2005). Although there are a lot of similar strategies in market development, the two retail groups also have their different development focus. In the first place, Wal-Mart awards its employees based on profit-sharing stock, which will improve employees’ skills, trust and constant work, while Carrefour focus more on salaries. In addition, Carrefour adopted a multi-format strategy, i.e. open smaller outlets in the discount format to create another profit growth, while Wal-Mart develops its presence in the hypermarkets format exclusively (Moreau, 2008, P.3). In details, proved to be a dynamic format competing against hypermarkets operators, department stores get a CAGR increase of 9%, 2002-2007. Therefore, department stores sales continue to be boosted by the expansion period decided by Carrefour (Moreau, 2008, P.2).

|This essay provides the analysis of the two foreign retail chains that is developing in Chinese market. To sum up, the two |
|world’s biggest retail sellers, Carrefour and Wal-Mart, operate similar strategies to Chinese market but also have different |
|focuses according to company situation and culture adaption. Typically, Carrefour pays more attention to localization and |
|relationship with local farmers,

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