Recommendations of Carrefour: Managing The Global Suppply Chain Case Help

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Recommendations of Carrefour: Managing The Global Suppply Chain Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the company to expand in international markets with no reduction in its local profits and any degeneration of its market position. By thinking about Alternative 3, the company might keep its store experience and brand originality. It could likewise think about alternative 2 that might allow the company to access the markets without any possible investment. Although, the business could pursue alternative 1 which would allow the business to concentrate on potential global markets rather than the regional markets but as the company is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in company's profits. Therefore, the business is recommended to consider alternative 3.

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

Growth towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the international presence of the business. The closing of domestic stores might extremely impact the revenues of the firm as above 90% of its shops are located domestically and closing those stores would eventually lower 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 alternative would assist the business to broaden in worldwide markets along with the removal of problems raised in its local markets related to its diversity. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in income from worldwide markets.
• Elimination of problems connected to diversity.
• Profits diversification.
• Step towards being a strong international brand.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand especially in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.

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

Alternative 2 consists of the intro of online market places through generating an appropriate company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could pose an extreme threat to the market share of company. Additionally, the rivals are shifting towards click and Recommendations of Carrefour: Managing The Global Suppply Chain Case Analysis stores with Gap introducing Piperline. This shift towards online markets could lower the incomes for business. In this situation the business might think about presenting Click and Recommendations of Carrefour: Managing The Global Suppply Chain Case Help stores. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competition risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the market position
• Elimination of brand name Uniqueness
• Elimination of the terrific shop experience.
• Threat of decline in elite sales.

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

Another choice that the business might think about, is to expand towards the global markets without closing its domestic stores that adds to the major part of revenues of the business. The pros and cons associated with Alternative 3 are offered below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Expanding customer base
• Big Earnings
• Exploration of new international markets.
• Boost in revenue from worldwide markets.
• Profits diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues associated with diversity.
• Differences in cultures could caused a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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