GLOBAL CORPORATE STRATEGY

Global Corporate Strategy

Case Study - Strategy Development in the Global Food Retail Supermarket Industry

Introduction

The purpose of this report is to develop a case study consisting of Strategy Development in the Global Food Retail Supermarket Industry. The overall, the trend of the global food retailing sector remains buoyant. Thus, fear of substitution of customer purchases in stores for the benefit of those using the Internet, implying a decline in market share, blurred for two main reasons. On the one hand, most of the retail chains have created a subsidiary of Internet sales and other, independent e-markets do not meet the expected success. Some websites even have serious financial difficulties. Sometimes, some fail, as Boo.com.

Among the factors of fear, economic conditions and consumer spending, having in recent months, a downward trend, mainly because of rising oil prices can have a negative impact on growth of distributors in Europe. But another threat looms on the horizon, Wal-Mart. Although changes in the distribution sector are less marked than in the building, however there is a constant race to internationalization in an increasingly competitive environment. The recent acquisition of 100% stake in UK (subsidiary hypermarkets and supermarkets in the number one Belgian distribution GBI) Carrefour illustrates this situation where the external growth has become the key element in the strategy of these companies.

Question One:

Strategic Alliances, Merger and Acquisition (M&A) activity

In recent years almost all companies in our country and the world, have come under increasing pressures from competition, technological innovation, customers or the need to reduce costs has addressed this new situation with different tools and methodologies. Mergers and acquisitions have been one of the most widespread, with a pace that keeps growing. This report aims to develop in a comprehensive manner the issue, ranging from the perspective of business strategy in the global food retailing industry. Until a decade ago alliances and partnerships (partnerships) solutions were "marginal" in the arsenal of strategies for procurement of critical mass (Johnson, 2005,, 20).

The last major restructuring movement occurred in this sector is the merger between Carrefour and Promodes. This merger has created the second group of global food distribution. This new set remains far behind the global leader, Wal-Mart.

Probably not in world history, not a single major transnational corporation, which in the conquest of the market would have cost no high-profile mergers and acquisitions? Permanent enlargement of the business is one of the major trends of recent times. However, there is one company in the world, for which the purchase of new assets - it is rather the exception than the rule. Her repeated attempts to swallow up rivals almost always ended in failure. But, oddly enough, it does not prevent it from becoming the world's largest corporation, leaving behind even giants such as ExxonMobil and General Electric. The title of this modest company is known to everyone, despite the fact that in Russia she had still not arrived. This is a company Wal-Mart (DunnHumby, 2009,, ...