Carrefour in Taiwan
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Case Details:
Case Code : BSTR281
Case Length : 15 Pages
Period : 1989-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Carrefour
Industry : Retail
Countries : Taiwan
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Introduction Contd...
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Initially, Carrefour had planned to use the strategies it
followed in France and other European countries in Taiwan as well, but it soon
realized that there was a significant difference between the behavior of
Taiwanese shoppers and that of shoppers in Europe; the Taiwanese shopped more
frequently and in small quantities, and were extremely price conscious.
Carrefour then decided to adopt a more localized approach, and brought about
changes in store design, store management, and merchandise. It introduced
several private label products, and entered into sourcing agreements with local
suppliers so that its products, especially fruits and vegetables, were fresh.
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By the early 1990s, it had managed to establish itself firmly
in the Taiwanese market and, by 2005, had emerged as one of the top retailers in
the country.
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Carrefour later used its experience in Taiwan to
enter other Asian markets such as Malaysia, China, Thailand, Singapore,
and Indonesia.
However, in the mid-2000s, Carrefour found itself facing some
difficulties in Taiwan due to adverse market conditions.
While announcing the results for the second quarter of 2006, Carrefour
said, "The tightening of credit in Taiwan continues to weigh on consumer
confidence, which is at its lowest point since 2002."6 Also, competition
was intensifying with local players emulating Carrefour's strategies and
business model... |
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