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Carrefour (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Carrefour

Carrefour SA (Carrefour or “the group”) is the world’s second largest and Europe’s largest retailer of groceries and consumer goods. The group operates four main grocery store formats—hypermarkets, supermarkets, hard discount and convenience stores. Carrefour operates in Europe, Latin America and Asia. The group is headquartered in Levallois Perret Cedex, France and employs approximately 490,042 people.


Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Wide market presence
  • Multi-format strategy
  • Strategic acquisitions

Weaknesses

  • Decline in operating margin
  • Low like-for-like sales in domestic market

External

Opportunities

  • Rebranding champion stores
  • Entry into emerging markets
  • Focus to boost non-food sales

Threats

  • Low consumer confidence
  • Rising labor cost
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