Carrefour Expansion and Entry Plan into the Bangladesh Market

Executive summary

The increase in globalization has increased market opportunities for large companies and organizations, making them go international. Carrefour is one of these organizations that have been sought to increase their market share by venturing into the global market. This expansion plan is for the organizations expansion and entry into the Bangladeshi retail market. PESTLE Analysis of the Bangladesh market shows that the external environment is very conducive for the business. There were no concerns found for the company to do business in Bangladesh. A SWOT analysis reveals that Carrefour has a strong market and product base to support companies seeking expansion. One of Carrefours main challenges in entering the Bangladesh market is determining that local participants could share the burden of operations and promote Carrefours understanding of local customs and operating regulations. Carrefour will enter the Bangladesh retail market in a joint venture with a local company. Due to the special circumstances in Bangladesh at that time, such as the limited operating space of hypermarkets, the government stipulated that Carrefour would start to limit the scale of operations to small hypermarkets or supermarkets of 43,00 to 5,600 square meters. The marketing strategy for this market will involve the establishment of a hyper/supermarket in Dhaka. The products involved will be the main offerings typical of Carrefour. Pricing will be done to ensure competitive advantage and to reach the spending-conscious middle-class buyer. Within Dhaka, the company will initially rely on the existing distribution chain for the partnering store and delve into e-commerce. Promotion will involve digital ads, compensation programs, community influence, and traditional marketing. Based on BCG Matrix, it is clear that this expansion and entry plan has the potential for success; however, once the company has launched operations, there will be a need for continuous analysis of customer demand for existing products and determine if any changes need to be made.

Introduction

Carrefour is a French multinational retail company based in Massy, ??France. In terms of revenue, it is the eighth largest retailer globally, operating supermarket chains, grocery stores, and convenience stores. As of January 2021, it has 12,225 stores in more than 30 countries (Carrefour n.d.). Carrefour has more than 321,000 employees worldwide. The turnover in 2019 was close to 80.7 billion Euros, more than half of which came from regions outside of France (Carrefour n.d.). Carrefour invented the hypermarket model in 1963, and its subsequent success made it possible for the model to be replicated in several countries. Carrefours strategy to become the preferred retailer in Europe is to maintain a customer-oriented culture and ensure transformation and innovation. However, this is insufficient when it comes to global expansion. To be successful in global operations in the fierce competition caused by market liberalization, companies must execute global marketing strategies to meet the needs of foreign customers (Chinomona and Sibanda 2013; Day Translations 2019). Before a service/product is advertised in a foreign country, it is very important to consider the unique political, social, technological, and cultural ideologies of people in different countries. Ignoring the needs of foreign customers will lead to a decline in the companys reputation and sales. This is why international marketing services are essential. What will the game be like? What are the legal requirements? Is the government hostile? What do people want? Whats the weather like? These are aspects that companies must take into account when changing the market mix (products, prices, promotions, locations) to adapt to the needs/complexities of new customers.

Even though Carrefour has made a considerable expansion globally, there are still some potential markets that it has not…

Carrefour Expansion and Entry Plan into the Bangladesh Market

Executive summary

The increase in globalization has increased market opportunities for large companies and organizations, making them go international. Carrefour is one of these organizations that have been sought to increase their market share by venturing into the global market. This expansion plan is for the organizations expansion and entry into the Bangladeshi retail market. PESTLE Analysis of the Bangladesh market shows that the external environment is very conducive for the business. There were no concerns found for the company to do business in Bangladesh. A SWOT analysis reveals that Carrefour has a strong market and product base to support companies seeking expansion. One of Carrefours main challenges in entering the Bangladesh market is determining that local participants could share the burden of operations and promote Carrefours understanding of local customs and operating regulations. Carrefour will enter the Bangladesh retail market in a joint venture with a local company. Due to the special circumstances in Bangladesh at that time, such as the limited operating space of hypermarkets, the government stipulated that Carrefour would start to limit the scale of operations to small hypermarkets or supermarkets of 43,00 to 5,600 square meters. The marketing strategy for this market will involve the establishment of a hyper/supermarket in Dhaka. The products involved wll be the main offerings typical of Carrefour. Pricing will be done to ensure competitive advantage and to reach the spending-conscious middle-class buyer. Within Dhaka, the company will initially rely on the existing distribution chain for the partnering store and delve into e-commerce. Promotion will involve digital ads, compensation programs, community influence, and traditional marketing. Based on BCG Matrix, it is clear that this expansion and entry plan has the potential for success; however, once the company has launched operations, there will be a need…

Carrefour Expansion and Entry Plan into the Bangladesh Market

Executive summary

The increase in globalization has increased market opportunities for large companies and organizations, making them go international. Carrefour is one of these organizations that have been sought to increase their market share by venturing into the global market. This expansion plan is for the organizations expansion and entry into the Bangladeshi retail market. PESTLE Analysis of the Bangladesh market shows that the external environment is very conducive for the business. There were no concerns found for the company to do business in Bangladesh. A SWOT analysis reveals that Carrefour has a strong market and product base to support companies seeking expansion. One of Carrefours main challenges in entering the Bangladesh market is determining that local participants could share the burden of operations and promote Carrefours understanding of local customs and operating regulations. Carrefour will enter the Bangladesh retail market in a joint venture with a local company. Due to the special circumstances in Bangladesh at that time, such as the limited operating space of hypermarkets, the government stipulated that Carrefour would start to limit the scale of operations to small hypermarkets or supermarkets of 43,00 to 5,600 square meters. The marketing strategy for this market will involve the establishment of a hyper/supermarket in Dhaka. The products involved will be the main offerings typical of Carrefour. Pricing will be done to ensure competitive advantage and to reach the spending-conscious middle-class buyer. Within Dhaka, the company will initially rely on the existing distribution chain for the partnering store and delve into e-commerce. Promotion will involve digital ads, compensation programs, community influence, and traditional marketing. Based on BCG Matrix, it is clear that this expansion and entry plan has the potential for success; however, once the company has launched operations, there will be a need for continuous analysis of customer demand for existing products and determine if any changes need to be made.

Introduction

Carrefour is a French multinational retail company based in Massy, ??France. In terms of revenue, it is the eighth largest retailer globally, operating supermarket chains, grocery stores, and convenience stores. As of January 2021, it has 12,225 stores in more than 30 countries (Carrefour n.d.). Carrefour has more than 321,000 employees worldwide. The turnover in 2019 was close to 80.7 billion Euros, more than half of which came from regions outside of France (Carrefour n.d.). Carrefour invented the hypermarket model in 1963, and its subsequent success made it possible for the model to be replicated in several countries. Carrefours strategy to become the preferred retai.......owever, this is insufficient when it comes to global expansion. To be successful in global operations in the fierce competition caused by market liberalization, companies must execute global marketing strategies to meet the needs of foreign customers (Chinomona and Sibanda 2013; Day Translations 2019). Before a service/product is advertised in a foreign country, it is very important to consider the unique political, social, technological, and cultural ideologies of people in different countries. Ignoring the needs of foreign customers will lead to a decline in the companys reputation and sales. This is why international marketing services are essential. What will the game be like? What are the legal requirements? Is the government hostile? What do people want? Whats the weather like? These are aspects that companies must take into account when changing the market mix (products, prices, promotions, locations) to adapt to the needs/complexities of new customers.

Even though Carrefour has made a considerable expansion globally, there are still some potential markets that it has not established a presence, especially in emerging markets. One of these is the Bangladesh Market, and therefore, this document is Carrefours expansion and entry plan into the Bangladesh Market.

Analysis of the Bangladeshi Market

The Bangladeshi market is described by factors beyond the companys control, even though they directly affect the companys success. These factors, therefore, will determine the suitability of and the feasibility of Carrefour expanding into Bangladesh. A PESTLE Analysis is best suited to describe this market (Hitt et al., 2016).

Politics

Bangladesh has a democratic system with a written constitution. Two large parties dominate politics with progressive agendas. But when it comes to elections and regime change, there are problems. Some political violence and strikes prevent the shipment of goods on time.

Economy

Bangladeshs economy is growing rapidly. It was promoted from a low-income country to a lower-middle-income country. After agriculture, the garment industry is the largest sector for employment and exports (Sodry 2016). This country has a mixed economy. Some aspects of the business are determined by the interaction between the buyer and the seller, based on supply and demand, while the government controls some.

Social

According to the latest estimates of the United Nations, Bangladesh is a country with a population of 163 million, as of December 11, 2016. About 87% of Bangladeshis are Muslim, followed by Hinduism (12%), Buddhism (1%), and Christianity (0.5%) (Sodry 2016). People are friendly, love festivals and are generally satisfied with their circumstances. Network connection grouping is a very important part of life in Bangladesh. In general, both East and West love fashion. Bengali is the official language. However, the English language is widely spoken, and it is being taught as a second language in schools and universities.

Technology

As evidenced by the use of social media in Bangladesh, people are generally positive about new technologies. The range of use of mobile phones is extremely high, and mobile technology is widely used in various fields such as banking and media. High-speed broadband can make the country a great new place for e-commerce.

Legal

Bangladesh has a good standard legal system. However, corruption can prevail in all areas of life and distort judgment through corruption. The unjust political influence of the independent judiciary was long, and it was a problem that aroused criticism at home and abroad.

Environment

Hundreds of NGOs are working on environmental issues, and the media is also very interested in environmental issues (Sodry 2016). Business organizations need to be careful not to violate their environmental requirements. All factories require permission from the Environment Department before they can be put into operation.

Analysis of Carrefour

Carrefours main products and services are supermarkets, supercenters, hypermarkets, discount stores, warehouse clubs, cash and carry, grocery and convenience stores. According to estimates, Carrefours revenue in 2020 was 69,857 million Euros, a year-on-year decrease of 0.75%. Among them, the net profit of the retail store brand was 620 million Euros, a year-on-year decrease of 42.09%. However, the company employs more than 321,383 employees to manage its global operations. Carrefours main competitors are Costco Wholesale, IKEA, Home Depot, eBay, Amazon, Target Corporation, Kroger, Coles Group, Tesco, Woolworths, Alibaba LIDL, and Walmart in the global market. However, for the Bangladesh market, competitors for this particular market include; Shwapno, Agora, Meena Bazar, Unimart, Lavender Super Stores Ltd., Khulshi Mar, Pick & Pay Almas Supermarket, Prince Bazar Ltd., and Saad Musa City Center (Maria 2014).

SWOT Analysis

STRENGTHS

Global brand

Awards

Quality service

Training and development

Diverse portfolio

Brand value

WEAKNESSES

Controversies

Exiting China

Limited presence in emerging markets

OPPORTUNITIES

Partnership and alliances

e-commerce

emerging markets

THREATS

Competition

Changing customer preferences

Legal requirements

Strengths

Global brand

Carrefour is the eighth largest retail store in the world. It is estimated that Carrefour has more operations in 33 countries around the world, such as Tunisia, Morocco, Kenya, Egypt, Georgia, Armenia, Alba