Carrefour Expanding in China Is Thesis

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Thus Carrefour must do the following:

Inform the local government if problems arise in running the business

Understand local government's incentives and also its limitations

In the media, Carrefour should never disclose the preferential treatment given to foreign retailers. This will embarrass the state and can cause problems for the government.

Carrefour should also support government's policy of join venture and include locals in the expansion plan. This will allow the retailer to learn more about the buying habits of Chinese people. When a big retailer enters a nation with considerable psychic differences, it's best to include the locals and this helps in understanding cultural views.

Carrefour has successfully adopted localization strategy. However with such formidable rivals as the Wal-Mart, the firm should learn from its competitors and see if it really is on the right track.

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While Wal-Mart is all about low prices always, Carrefour offers discount on selected items at a given time. Chinese people love discounts and low prices. They are money savvy and hence any company offering lower prices with good quality is likely to cut through. Thus Carrefour should stay competitive by offering items at prices that Chinese customers would be attracted to.

It must also try to enter areas where Wal-Mart has not yet made its presence. This can allow for deeper penetration and larger share of market. It can also give Carrefour the advantages arising from being the first mover......

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