Carrefour: Hypermarket and St Economic Power Essay

Economyst economic power and the first exporter of goods in the world. Ideed, the economic situation is very favourable as the the economic growth is one of the highest of the with with 7,9% in 2012. Social : The living standard seems to be higher over the last few years which engender an improvment of the purchasing power and stimulate the consumption as well as the economic growth.

Moreover, the month average income is around 2400 yuans which represents 300 euros Plus, the country is more and more developed as the HDI is 0,681/1 which demonstate an improvment of the linving standards.However there disparity because the economic situation is not profitable for all population which means that China benefits from a dual economy. Technological : This country has developed the infrastructure like the facilities, Internet access. Environmental : China is one of the biggest country touched by degradation of environment.

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Five force of porter The power of competitors : Carrefour undergoes a competion pressure because of the presence of giant of rtailed companies. Indeed, regarding intrenational companies Auchan holded 12% of market shares in 2012, followed by Walmart with 11,2% and Carrefour with 8,1%.The, the local distributors like Shangai Bailin dominate the Chinese market. Indirect competitors : hard discount supermarket such as DIA. Before this brand belonged to Carrefour but since 2012, Dia is a independent brand present in China. Power of customers : The customers and the government are more demanding regarding the products and food security. They would like more information about the products traceability because of problem of expiration date falsifying. Then, the power of customers is more and more high because some consumers association denounce the poor quality of the products in doing boycott, inform the media.

That is why Carrefour invested 5 billions yuans ,in 2012, in opening a laboratory in order to testify the products. Menace de nouveaux entrants : Power of suppliers : Produit de substitution : The e commerce is one of the sector more developed nowadays. Indeed, in China, the best site selling products similar to the general supermarket is named Yihaodian . This online supermarket offers products with price lower 3% to 5% than traditionnal supermarket. Internet is one of the cheaper and profitable commercial tools that is why more and more companys develop e commerce.

Nowdays, Walmart owns a 51% of the part of the corporation.


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