Essays on Logistic and Maintenance Strategies Employed by Carrefour Case Study

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The paper "Logistic and Maintenance Strategies Employed by Carrefour" is an outstanding example of a management case study.   Logistics is made up of a planning orientation and framework that aims at coming up with a single plan that would enable the flow of products and information in businesses or organizations. Over many years, logistics has played an important role in the provision of products at the right time, place and condition. The importance that logistics play in ensuring the success of organizations cannot go unnoticed. It is important to note that it is not a recent phenomenon and that it deals with how people and material are organized, moved and stored.

It mainly involves the planning and control of how materials and information related to its flow within and between various organizations. Its main aim is to facilitate the flow of the right materials to the right place and at the right time. This is usually done while ensuring that the total operational costs of the whole process are optimized. This paper seeks to analyze the logistic and maintenance strategies employed by one of the World’ s major retailer, Carrefour. Carrefour has over the past few years grown to be a global operation, registering a turnover of € 91.5 billion in 2011.

Its operation has been expanded to cover over 33 countries around the globe. Logistics and maintenance, therefore, form an important part of this organization. Logistic planning, as well as maintenance activities, have made Carrefour become the largest retailer in Europe and the second-largest globally, only behind Wal-Mart. Over the past few years, Carrefour has been focusing on expanding into new as well as emerging markets.

It is a hypermarket that deals in various products that include groceries, textile, household items as well as food items. The retail businesses that Carrefour deals in include discount stores, online stores as well as convenience stores. The wide extent of businesses the company deals in means that it has a great number of competitors that range from other convenient stores to hypermarkets such as Tesco and Wal-Mart. Company information and history Carrefour has grown to become a global brand over the past few years. This growth has seen the company rise to become Europe’ s top distributing entity and second on the global scale.

The total number of stores operating under Carrefour is well over 11,000 and the stores are located in over 33 countries. Over 2 billion consumers are served by Carrefour around the world. In addition to that, the company employs well over 400,000 workers (Carrefour, 2014). The company was founded in 1959, shortly after the Second World War. The post-world war period saw the food retailing industry in France grow in bounds, giving two businessmen, Louis Defforey and Marcel Fournier an opportunity to venture and establish themselves in the industry.

The small family-owned business rapidly grew into big retail shops which led to the formation of the Carrefour Company. Two years after the company’ s formation, the first supermarket was opened in Annecy. The good prices, as well as location, made it a favourite purchasing destination for most consumers (Techbusiness 2009, p. 2). In 1963, the two co-founders decided to incorporate a new idea into Carrefour Company. Instead of dealing in retailing of food as well as household products, it was decided that the business should venture into other activities such as shopping center, gas services, parking services as well as food retailing, all within one location.

The area covered by the shopping complex was to be 2500 M2. It is this idea that gave rise to modern hypermarkets. The company continued to grow with the 60s and 70s seeing the addition of new convenience services as well as the expansion of the company’ s capacity. The continued expansion of the business made it impossible for other small retailers to compete with the hypermarkets.

To protect the small retailers, the government had to set growth limits for hypermarkets. This forced the large retailers to re-look their strategies with most of them, Carrefour included, opting to look for new opportunities outside the country (Techbusiness 2009, p. 5). The first hypermarket opened by Carrefour outside France was in Belgium and this was in 1969. Other hypermarkets followed in Spain, Brazil as well as Argentina. Expansion into the Asian market started in 1989 with the company opening its first store in Taiwan.

Entry into the US market in the 1990s proved quite challenging as the firm failed to establish its presence (Techbusiness 2009, p. 5)

Reference

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Ross, David Frederick .2004. Distribution. Boston: Kluwer Academic Publishers. Print.

Carrefour >. 2014. [Online] Carrefour.com. Available at: [Accessed 19 Apr. 2014].

Techbusiness, 2009. 1 Carrefour vs. Wal-mart: The Battle for Global Retail DominancE. 1st ed. [pdf] AGSM, pp.1-33. Available at: [Accessed 19 Apr. 2014].

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