Recommendations of Carrefour Managing The Global Supply Chain Case Solution

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Recommendations of Carrefour Managing The Global Supply Chain Case Study Help

On the basis of above internal and external analysis of the company along with the evaluation of numerous alternatives, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in international markets without any decrease in its local earnings and any wear and tear of its market position. By thinking about Alternative 3, the business might maintain its store experience and brand name uniqueness. However, it could likewise consider alternative 2 that could enable the company to access the markets without any potential investment. The company could pursue alternative 1 which would allow the business to focus on prospective international markets rather than the regional markets but as the company is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decline in business's profits. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Carrefour Managing The Global Supply Chain Case Analysis Stores

Growth towards international markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a great choice for increasing the global presence of the business. Nevertheless, the closing of domestic stores could extremely affect the profits of the firm as above 90% of its shops are located locally and closing those stores would ultimately decrease the profits of the firm. The company has a long term market position in US which can not be generated quickly in the new markets. The option would help the company to expand in worldwide markets in addition to the elimination of problems raised in its regional markets related to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of new international markets.
• Boost in revenue from worldwide markets.
• Removal of concerns connected to variety.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive profits from the local markets.
• Boost in competitors.
• Distinctions in cultures could caused a failure of the brand especially in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Carrefour Managing The Global Supply Chain Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might present a serious danger to the market share of business. In this circumstance the business might think about presenting Click and Recommendations of Carrefour Managing The Global Supply Chain Case Analysis shops. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Elimination of the fantastic store experience.
• Risk of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the business might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of earnings of the company. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Lowering competition risk
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Expedition of new international markets.
• Boost in revenue from worldwide markets.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of concerns connected to diversity.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to acquire market share.



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