Carrefour's Foray in Brazil
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Case Code: BSTR329 Case Length: 17 Pages Period: 2000-2008 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.300 Organization: Carrefour SA. Industry: Retail Countries: Brazil Themes: International Business, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Brazilian Retail Environment
According to a report by AT Kearney on the Global Retail Development 2008 , Brazil with a population of about 190 million was the fifth largest retail market in the world. The country had the second largest population in the Western hemisphere after the US...
Carrefour in Brazil
In September 1975, Carrefour started operations in Brazil with its hypermarket format. This was one of the earliest international ventures for the company. Opening up at an early stage, when the market was undeveloped, Carrefour enjoyed the first mover advantage. This gave it enough time to build its brand presence by the time the local retailers had established themselves and international retailers like Wal-Mart and Casino had started to make their presence felt in Brazil...
Managing the Supply Chain
Carrefour's supply chain operations were inefficient in Brazil primarily because of its poor infrastructure. However, the company began to make its supply chain efficient by starting a centralized distribution system in 1999. It also partnered with the vendors, suppliers, and farmers, and shared knowledge as well as technical expertise with them...
The Road Ahead
In spite of the several challenges that Carrefour had faced in Brazil, the company looked forward to continuing its business expansion in the country. It intended to open at least four new stores in Brazil in the first quarter of 2009.
According to Pedro Daniel Magalhaes, Chief Financial Officer, Carrefour Brazil, in December 2008, "The advantage we see is the one everybody else sees: Brazil still has a lot of room for development."...
Exhibits
Exhibit I: Carrefour Brazil Store Count (1992-2005)1992-2000
Exhibit II: Carrefour's International Operations: Consolidated Sales (Including Vat)
Exhibit III: Parameters for Measuring Vendor's Efficiency
Exhibit IV: Brazil's Top Five Retailers in 2008 (Grocery)
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