Ahold Case Essay

988 Words4 Pages
Q: What are the advantages and disadvantages of growth strategies pursued by Royal Ahold, Carrefour, and Wal-Mart? A: Ahold’s main strategy as said in case 9 as, “multilocal, multiformat, and multiformat,” employing new products, services, and store formats to make shopping for healthy and comparably priced food more convenient. They want to be perceived as a local company in all different cultures and demographics. They do not want to be seen as retail monster like Wal-Mart, as you can tell by the title of this case, “Royal Ahold: The biggest supermarket retailer you have never heard of.” Ahold advantages: * Keeping local names, helps prevent cultural shock. When acting in a global manor you reach over many different cultures. By keeping the local names it helps with difficulties in cultural problems, and maintains local image. * Focusing on just food sales give them the ability to create the best food sales service possible * (opposed to Wal-Mart, who also has many other areas of retail to tend too) * Keeping the local name can make customers unaware that a large global company took over. * High customer retention * This inorganic growth strategy of acquisitions and mergers creates fast and cheap growth. * Fast and cheap growth due to they are buying already running businesses * No need to change infrastructure and signage to make it look like all other stores. * When you acquire so many different business styles and infrastructures, you can really bring many different ideas under one company. * This diversity in ownership makes a very innovative and smart company. * If one brand fails it does not bring your entire company down, and it doesn’t give bad publicity to your other names. * Creating multichannel business with online grocery will create a larger sum of purchases, creating higher
Open Document