Carrefour in Taiwan
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Case Code: BSTR281 Case Length: 15 Pages Period: 1989-2007 Pub Date: 2008 Teaching Note: Not Available |
Price: Rs.300 Organization: Carrefour Industry: Retail Countries: Taiwan Themes: International Business, Globalization Business |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Entry and Expansion in Taiwan
In the late 1980s, Carrefour decided to further expand its global operations. Asia was attractive owing to good growth prospects in the region. Carrefour considered several markets like Hong Kong, Singapore, South Korea, Japan, and Taiwan from which to begin its Asian foray...
Store Management
In Taiwan, Carrefour decentralized store management, and treated each store as a profit center. The stores were headed by store managers, just as in other countries. However, in Taiwan, Carrefour's store managers were given more autonomy compared to their European counterparts...
Product and Pricing
Carrefour was one of the first companies to open hypermarkets in Taiwan. It was also one of the first retailers to provide one-stop shopping and free parking...
Managing the Suppliers
Carrefour changed the traditional retailer-supplier relationship in Taiwan, and successfully transferred some of the costs which retailers usually bore, like advertising costs, loss on account of damaged goods, etc., to the suppliers...
Localization Strategies
After Carrefour realized that store formats that were successful in other countries might not be successful in Taiwan, it set up stores that often had more than one floor, unlike the western style hypermarkets, which usually occupied a single floor...
Outlook
Though Carrefour was extremely successful in establishing itself in Taiwan, its revenues began to decline after 2000, even as the number of stores was increasing. (Refer to Table I for details.) Some of Carrefour's practices like back margin and charging slotting fees did not go down well with the suppliers, who felt that the company was taking undue advantage of its bargaining power...
Exhibits
Exhibit I: Carrefour - International Expansion
Exhibit II: The Top 15 Grocery Retailers in Europe
Exhibit III: Carrefour - Store Formats
Exhibit IV: Carrefour - Sales Country Wise (€ Million)
Exhibit V: Retail in Taiwan
Exhibit VI: Carrefour - Entry into Asia
Exhibit VII: A Comparison of Carrefour's Strategies in China and Taiwan
Exhibit VIII: Carrefour's Major Competitors in Taiwan
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