Assessing Carrefour’s Foreign Market Entry

Introduction Carrefour is a retail international supermarket chain established in France, the largest retailer in Europe and the world's second largest retailer. In 1957 Carrefour opened its first store in the southeastern part of France and in 1963 the first large supermarket in France opened successfully and sold food and non-food. In 1969, the group opened its first international supermarket in Belgium, and continued to start the Carrefour chain store in other EU member countries.

Carrefour and Wal-Mart are the largest and largest retailing companies in the world recognized by French and American companies, aiming to become the largest foreign-owned retailer in the Chinese market, with sales volume and sales growing (Moreau and Raphael, 2008). The purpose of this paper is to compare and contrast the Carrefour and Wal-Mart strategies in the Chinese market. Expansion to second-tier cities In the case of the first major cities, such as wealthier coastal areas, which are facing market saturation, Carrefour and Wal-Mart are expanding large supermarkets to the inland regions of China, We adopted the 2007 strategy for possibility and urbanization trends. It is highly appreciated (Liu Jie, 2008). For example, stores in the second tier of Carrefour occupy nearly 40% of the total. This shows that the second-tier cities in the Chinese market have large purchasing power.

Both Carrefour and Wal-Mart are concerned about drug retailing, which is a common phenomenon in the Chinese market. Drugs are currently available at pharmacies because drugs are limited to marketing drugs (OTC), drugs (Xin hua 2005). Therefore, competition will intensify as a result of foreign large supermarket operators entering, markets will be further regulated in the Chinese market. Organic expansion and large-scale acquisition As discussed by Moreau and Raphael (2008), Carrefour continues its expansion strategy expected in the Chinese market like Wal-Mart and satisfying revenue growth through the establishment of a new large supermarket We expect to continue to achieve. It relies especially on organic expansion and will consider small acquisitions as necessary. Difficulties combined with other chains may be seen as obstacles to large acquisitions