Based on Michael Porters Technique and Analyzing Industries and Competitors, there are five forces that can affect competition. Thus, there only three of that factors which relevant to our discussion for Carrefour. Firstly, substitutes, because Carrefour is in market that competitors have an easy access to enter or out from the market there will be a lot of competitors that it will face, if Carrefour can not maintain their motto, buyers can switch to other alternative of hypermarket, so Porters model actually believe that since there are fair competition in the market, there were great availability for buyer to substitute their preference to other hypermarkets, with this type of competition in market there will be rivalry of competition that will affect Carrefour and their competitors to reduce the price anytime, and it will be a benefit for another factors which is buyer, there will be provided with wide variety of goods and they will buy the goods in competitive price.
What competitors want in marketplace?
As a marketer of Carrefour we are force to keep tracking of our competitors’ goal and behaviour. To keep track of competitors goal we should be able differentiate their goal by time frame, which is short run or long run. In our case of Carrefour competitors, it more likely that they target to become market leader for their competitors already enjoying their profit even though it is not their maximum; but the point is to take over Carrefour as market leader.
Carrefour and any others hypermarket in Malaysia, based on strategic group have the similar strategy applied as their basis. The quite differences will only be decided if Carrefour can detect any movement or policy of their competitors, especially for price and quality of Carrefour private brand compare to their competitor private brand.
Strength and weakness based on secondary data
In most cases, it will hard to figure out what our competitor’s strategy and goal if we used...