Economic Turbulence in the Retail Industry

This paper deals with the economic turbulence in the retail industry. The paper contains a detailed analysis of the industry in accordance with Michael Porters five forces model. In addition to this, the future of the retail industry is summarized in accordance with the Accenture article containing the modern trends, such as green retailing.

Michael Porters Five Forces Model
Threat of New Entrants
The threat of new entrants in the retailing industry has been reducing in the past several years, as the number of independent retailers has been decreasing during the past decade. Most retail stores nowadays are chain stores. The main reason for this is that establishing favourable contacts with suppliers requires great capacities and efforts of independent stores. Although the barriers for starting a retail store are not impossible to overcome, it is very difficult for new retailers to gain the competitive edge and be successful due to the presence of multinational chain stores.

Authority of Suppliers
Suppliers in the retail industry tend to have very little authority, because of the large number of suppliers and only a few large retail chain stores. In the past, the retailers have exploited the suppliers through setting high quality standards and demanding lower prices and higher discounts. The Sears chain would be a good example to mention here. In 1970s, the Sears chain sought to dominate the household appliances market (investopedio.com, 2009). Sears exploited the suppliers by setting up very high quality standards for the suppliers that they were not able to meet (investopedio.com, 2009). Many of these suppliers were dropped from the Sears product line. Another example would be Wal-Mart chain, which exercises a strict control over its suppliers (investopedio.com, 2009). Small suppliers can become bankrupt or flourish depending on their contracts with large retail stores (investopedio.com, 2009). Therefore, these reasons cause the suppliers to have a very little power in the retail industry.

Power of the Buyers
The individual buyers have a little or no bargaining power over the retail chain stores. The main reason for this is the presence of only a few large retail chains in the world, which are in control of the resources. The other reason is that the prices for the products in most of the large retail store chains are fixed. For example, it is almost impossible for a customer to handle for lower prices for grocery at Safeway (investopedio.com, 2009). But the customers are able to demand high quality products for the fixed prices they pay. Therefore, they have a little power in terms of demanding high quality.

Availability of Substitutes
The retail stores do not specialize on one good or service, but they offer a range of services and products for the customers (thekwoka.com, 2009). Most of the retail store chains offer the same range of products and services, which means that what one retail store offers is likely to be also found at another retail store (investopedio.com, 2009). The retail stores, which offer unique products or services have an absolute competitive advantage over the other competitors and are able to attract more customers.

Competitive Rivalry
There is a large number of retailers in the market. Thus, a large retail store can now be found in every street of most U.S. cities. In 2005, Wal-Mart alone had more than 6,800 stores worldwide (Zook  Graham, 2006). All the retailers nowadays face a tough competition. The slow growth in the retail industry makes the retail chains think of innovations in different ways and engage themselves in competitive rivalry. This competitive rivalry sometimes results in price cuts for a larger market share. Recently, the economic downturn in the global economy has caused cut-throat pricing strategies of the chains. The retailer competitors offer frequent purchase points, membership clubs and other unique services to attract more customers and make the existing customers more loyal.

Future of Retail Industry
As the customers become all the more concerned with the environmental safety, many organizations in the world change their long-term strategies to become green. This trend has also become evident in the strategies of retailers and a new term, Green Retailing, has been coined (Accenture, 2008). Tesco will be transforming its business to suit the needs of the future regulatory requirements by reducing its carbon footprints in large amounts (Accenture, 2008).  This will make Tesco the leader in the low-carbon economy and thus, the chain will be able to attract more customers. Replacing the current transportation system with emission free delivery vans has been the aim for many retail chains (Accenture, 2008). This will save tons of carbon emissions a year, enhancing the image of the retail store chain among the consumers.

The retail stores offering grocery will be tilting more towards organic and green farming (Accenture, 2008). Coop, which is one of the largest grocery retailers, has shown interest for organic farming in future and will buy out more than 6,300 organic farms to grow its own grocery (Accenture, 2008). Creation of ethical trading standards with suppliers, sale of more low energy appliances and premium payments for environmentally friendly products are the most anticipated trends for the future of retail industry (Accenture, 2008).

After you graduate, how are you going to use the learning gained during your time in college

Franklin Roosevelt once said, A man who has never gone to school may steal from a freight car, but if he has a university education he may steal the whole railroad. If one ought to discover a gem of an advice from the late American presidents remark, it would be the immense potential of one person when heshe had gone to school. I doubt not of the huge difference of an educated man and an illiterate

There are many ways of which the learning we had experienced on college could be utilized even after graduation. You could use it to finally fulfill your dream of being a medical doctor, to build a charitable foundation for abused children, to pass a bill in the Senate to build a drainage system on your local town, to accumulate power, to create an empire of colossal proportions. With the learning we had in college, we could be the persons we want to be and build the future as we would like it to be.

As for myself, I would use the valuable experiences I had on college to get myself a job. It would be the first stepping stone on my way to success. College had taught me to persevere I would do the same for my job. I would prove myself as an invaluable asset to my boss and to the whole of the company. The next step would be to climb the ladder of success. The hard work I had made on college I would make useful on real life determination, confidence and endurance. After I had been promoted to the top tier of the company, I would share my experiences to others who are not as fortunate as I am and help them fulfill their dreams. As one popular dogma would say, Success is nothing if there is no one to share it with.

This only shows that the lessons we had on college is not ensnared on the four walls of the classroom it goes beyond it and beyond time as well. Success to be to those who are learned

Environmental sustainability is a widely recognized concept with current environmental changes caused by global warming. Our generation is aware of the destruction people and corporations causing which is depleting natural resources such as ozone hole, rainforest destruction, and air and water pollution.  Honestly, sustainability is compared to environment sustainability. It considers each generation to live high quality life with peaceful positive mind. Due to the high standard of living caused by improvement in technology and science, our children will face modernized social issues such as inequality of wealth, poverty, and discrimination.

These social issues cannot be solved by one leader. Therefore, our generation should care more about these issues in order to leave a good example for our next generations. The United States is worlds leading country, thus small changes such as educating socially responsible investment could impact the whole wide world. The dilemma that modern society carries could be solved by creating more ethical investors. By avoiding businesses such as alcohol, gambling, tobacco, and weapons of mass destruction our society could be peaceful as inequity of wealth diminishes. Additionally, lots of fair trade made by ethical behavior would cause decrease in both poverty and inequity of wealth. As a consequence educating ethical behavior would cause discrimination since equal human right is a basic topic in ethics. It would be applied in reality that all human races are equal no matter what color and gender. 

Unfortunately, the social problems of poverty, inequity, and discrimination were there from the modern history. Between 1929 and 1939 a period know as the Great Depression unemployment in the United States hovered between 25 and 30 (Illinois). A solution to the problem is to continuously educate our children in topics of ethical investment there would be huge change made toward our world. This could result in maximizing both profit and social good would result with this educating process. Since humans are running the Earth right now, social sustainability stands first than environment sustainability. Therefore, lets work together as one to eliminate poverty, inequity, and discrimination.

How my Stanford Education will help me in Achieving my Career Aspirations

Education is an essential pursuit needed to enter the realm of the working class and be a great addition in the community. College education prepares every person to the jobs and careers that they will take on after graduation. My main goal after graduating in my tertiary education is to work for a subsidiary of the Walt Disney Company, a big company venturing in theme parks, film production and merchandise goods.

I think that it is a dynamic company that can make full use of my abilities and talents. Modesty aside, I possess a unique combination of knowledge that may be essential in a big company like Walt Disney. It will be a great opportunity to show my abilities, especially in cross-cultural management, which proved to be crucial and vital in a company like Walt Disney. I already prepared some of my suggestions to the company that may be useful in improving the company and increase its profits. I would like to render them my suggestions for the improvement of the company, especially in their theme parks and how it can be transformed from a simple kiddie carnival into an adult-oriented venue. I will do my best in expanding the business and to make it a place not only for kids but also a place where parents and grandparents can enjoy as well.
   
My long term goal in my career is to become the CEO of the Walt Disney Company. As the CEO of the company, I will revolutionize some of the old policies that may no longer be applicable in the present times and to cope with the competition. My primary goal as the CEO of Walt Disney Company is to bring development and improvement to the company. Walt Disney Company is a company that is in need of new policies and regulations that will improve the whole organization. If I would become the CEO of the Walt Disney Company, I will also include changes in other aspects of the organization like in the film making department wherein I will incur variety in the film department. If I will become the CEO of the Walt Disney Company, I will also incur in the company our social responsibility to help other people here and abroad.
   
My education in Stanford University will play a big role in pursuing my dreams and achieving them. Through my education, I have acquired vital knowledge in international relations and politics focusing on the understanding of international processes that govern the political processes in the world combined with fundamental knowledge of economics. Moreover, I have an experience in cross-cultural management and I have an experience in building teams consisting of people from different ethnicity and cultural background during my work and studies at Stanford University as well as during the summer program at the State University of New York.
   
Stanford University is a unique community that is composed of students from various countries seeking their valuable education. As such, I am exposed to different cultures through my interaction with students which can widen my knowledge and understanding of other cultures and will equip me with the ability communicating and interacting with them. I am also fluent in other language like French and currently studying Mandarin and Japanese. I guess that education at Stanford will be a great step towards the achievement of my goals as I will learn more on how to manage people and how to bring all my ideas to life.
   
With the knowledge and understanding that I will learn and acquire during my tertiary education, I will be able to achieve my goals and dreams in my desired career path. This university provides quality education to their students in order to become competitive in the global arena. In addition, Stanford University is a school that not only bequeath the students with appropriate and adequate knowledge, but also hone their personality and traits that may be useful in their careers. Indeed, the Stanford community is also a dynamic and intelligent community that is rich in public discourse of essential topics that may add to the inherent knowledge of students or members of the community. Stanford University is a good place in training for my future career for it provides all kinds of training that I need in order to be successful in my desired career.

BUSINESS STRATEGY

Business strategy is the direction and scope of a business organization over a long period of time. Business strategy focuses mainly on the direction of the organization, market scope, competitive advantage, resources, environment and the stakeholders (De Kluyveer, 2008). It is about where the business wants to get in the long term detection, which markets should the business organization compete in and what kind of activities involved in such markets scope, how can the business compete better than the competition in those markets, external environmental factors affecting the business environment, the values and the expectations for those with power within and without the organization stakeholders. The strategies are decisions that are made in order to achieve advantage for the organization through configuration of the resources of the organization within a challenging economic environment (Gerry,  Whittington, 2005). This is meant to meet the needs of the market and to fulfill the stakeholders expectations. The decisions made by an organization can only be termed as strategic if they involve consciously doing something differently from the competitors and if the difference results in a sustainable economic advantage (Hughes, 2005).

The strategic decisions also involve the activities which will result in the increase in productivity of the organization by making the existing methods more efficient. This will enable the organization to develop a sustainable superior performance for the stakeholders (De Kluyveer, 2008). The business strategies of a particular organization should be hard to imitate and unique. Therefore, the operational efficiency of any organization is not strategic since they can be copied by other business organizations. The one factor that renders the business strategies hard to imitate is the fact that they will always result in a complex interaction between diverse activities, which are not reducible to the sum of the individual activities. Hence, it is this synergy between the activities that produces value of the organization but not the activities themselves (De Kluyveer, 2008).
   
Business strategy is therefore a statement of some selected business plans defining the organizations vision, the strategy and tactics that will enable the organization to meet the objectives, the resources needed, how they are going to be acquired and how they are going to be used effectively as well as efficiency for the betterment of the organization. Economists have argued that business strategy is the foundation of successful business. The business strategy must steer the course between the internal pressures of the business continuity and the demands and challenges of a rapidly changing world of business (Black, 2007).

Theories of business strategies and their differences   
There are four theories that have been put forward by Whittington in order to explain the basic assumptions about some key relationships in business realms with regards to strategies of business. These theories seek to enlighten the business organizations on what to look for, steps to be taken and what to expect as the results of the actions and decisions made within the organization for the organization (Whittington, 2001). However, these theories are neither explicit nor formal but actual assumptions that have been studied for a period of time and have been found to be very relevant in every business organization. All these theories tend to have private assumptions about how business decisions work and how to get these things done in a relevant and systematic manner. It is therefore imperative that every business organization adopts the strategies in order to enable the business unit to survive and to maximize profits. There are four theories of strategy that have been adopted widely, these theories are the classical approach theory, evolutionary approach theory, processual and systematic approach on strategy. There are differences in all these theories. On the other hand, there are also similarities in some aspects.

The classical approach on strategy  
This approach focuses more on the rational approach aspect (Cuizon, 2007). It involves planning as a significant part. This approach was prominent during the 1960s in the United States. In this approach, there is a top-down, rational and logical approach to the formulation of strategies (Whittington, 2001). With regards to this approach, implementation was the responsibility of the operational managers. According to Whittington, the highest goal of the business organization with regard to this approach is the rational planning as a means to attain the business profitability (Gerry,  Whittington, 2005). Therefore, the strategic aim of the organization is to earn a return on capital. However, if in any case the return in capital is not satisfactory, the deficiency should be corrected or the entire activity of this strategy that was used abandoned for a more functional decision (Cuizon, 2007). This approach therefore requires that managers be ready and more flexible in adopting some profit maximizing strategies through rational long-term planning. This theory further assumes that the managers have near or total control over how to allocate both the internal and external resources of the business organization in order to meet the set objectives of the business organization.

Therefore, the managers can manipulate the internal organization by ensuring that the operational managers have the capacity to implement the functional decisions of the organization (Cuizon, 2007). As mentioned above, the strategic behavior is guided by the rationality, opportunism and self interest. This approach basically focuses on the rational profitability and relevance of the business organization. In this approach, the responsibility of control and consciousness rests upon the control of the managers. In most organizations in the world, this approach is explicitly applicable as the managers, especially the top managerial staff, have been allowed to make decisions that will influence the profitability of the entire organization. The organizations have confidence in the managerial staff and have allowed them to make major decisions that will influence the profitability of the organization with regards to planning and implementation of policies of the company (Whittington, 2001).

The evolutionary theory  
The evolutionary approach focuses mainly on the market.  It was developed during the market led 1980s which were all about survival in the market scenario (Whittington, 2001). It allowed the environment to determine the ultimate profitability and not the managers as in the case of classical approach. This approach assumes that market will determine the profit maximization of the entire business organization. On the other hand, it assumes that whatever methods the managers adopt, the best performance will survive. In this approach, unlike the classical approach, rational method is not the basis due to the fact that its evolution is natures cost benefit analysis (Cuizon, 2007). According to this approach, competition is not overcome by some detached calculations like the ones for the classical perspective but rather by constant struggle for survival in the business realms. The evolutionary theory focuses more on the biological principle of natural selection as its core theory (Gerry,  Whittington, 2005).

Therefore, most apt strategies often lead to the best performance while allowing them to survive and progress further in the process of strategic planning and thinking. This theory adjusts the business by letting the market to do the thinking instead of the managers (Whittington, 2001). Therefore, the markets will choose the prevailing strategies within a particular environment. Thus, the survival in the market will appear and favor those business organizations that have adopted themselves in the environment.

This approach assumes that market competition is the most effective way of removing inefficiency in the organization. Unlike the classical approach, evolutionary approach to business strategy does not have confidence in the top management (Cuizon, 2007).

The business organizations maximize their chance of survival in the short term period by ensuring that they achieve a perfect fit against their current environment. Therefore, this approach differs greatly from the classical approach in the sense that the classical approach allows the managers to make decisions and enable the profitability of the organization while the evolutionary approach allows the market to make the decisions and survive in the market environment. On the other hand, while the classical approach favors the long term objectives of the business organizations, the evolutionary approach focuses on the short term period which is dictated by the market environment and survival (Whittington, 2001). Moreover, this approach lacks confidence in the top management.  With this approach, the market has the core responsibility of determining the direction of the organization, while in the classical approach the market environment decides the direction of the organization. Competitive market advantage is more important in this approach than in classical one.

While the evolutionary approach does not involve much planning, the classical theory involves planning by the top management in order to attain the set objectives. Evolutionary approach is based on the market decision and the decisions might be made according to the trend of the market. Though this approach has been used by a number of organizations, it has not succeeded well as compared to the classical approach. Moreover, this theory does not require rational aspects of thinking and decision making unlike the classical approach where the rational thinking and decision making are the core aspects of the theory (Whittington, 2002). 

The evolutionary approach on strategy does not rely on the top managements skills to plan and act rationally but rather depends on the market scenario to enable the organization achieve its objective. Moreover, the two approaches differ from each other greatly in the fact that classical approach is more costly because it involves planning, implementation and evaluation of the strategies and decisions used, while the evolutionary aspect leaves the entire decision making and thinking to the market (Gerry,  Whittington, 2005).

Though the approaches to business strategy are four, they all differ along two dimensions. The difference arises because of the outcomes of the strategy used and the process by which it is made. The evolutionary approach also sides with processual approach in depicting strategy as emerging from the processes that are governed by chance, confusion and conservatism (Ketchen, 2008). This differs greatly from the classical approach with its assumptions that strategy can be deliberate. The evolution theory is evidently used in manufacturing industries where the market dictates the optimum position of the organization while the classical approach is evident in other business institutions and service providing business organizations where strategies are made by the managers in order to capture a diverse range customer base.

Similarities between the classical approach and evolutionary theory
There are limited similarities between the two theories however, the similarities seek to explain the ultimate objective of the two approaches which is to maximize the profits. Classical and evolutionary approaches both see profit maximization as a natural outcome of the strategy making. The systematic and processual approaches are more pluralistic and envisioning other possible outcomes as well as profit (Gerry,  Whittington, 2005). Moreover, both evolutionary and classical approaches believe that those businesses that are powerless to change themselves quickly in order to ward off extinction will not survive the competitive process. Therefore, both classical approach and evolutionary one are inclined towards market advantage in order to maximize profits and to survive the economic challenges (Gerry,  Whittington, 2005). Moreover, both theories to strategy depend largely on the social context and therefore both of them should be taken with sociological sensitivity. It is also imperative to note that even though all the four approaches of strategy are different, there are similarities that are evident in all. This is because all the four strategies are geared towards fulfilling the stake holders expectations.

Evolutionists and classicists, on the other hand, insist that the judgment of the market place vindicates the basic efficiency of diversification. With regards to movements of foreign markets and direct investments, both classical and evolutionary approaches countermove as an elaborate game that is designed to protect the business organizations power (Black, 2007). Both classical and evolutionary approaches to strategy are inclined to the long-term aspect of the product life cycle. The organizations life and success is based on how well these strategies have been structured (Whittington, 2002). Therefore, it is imperative for every organization to structure their strategies in an explicit manner for the purpose of meeting the organizations objectives and fulfilling the stake holders expectations.

Classical and evolutionary approaches to strategy are similar in the fact that both are inclined towards attaining a competitive advantage as a means of deliberately choosing a different set of activities in order to deliver a unique mix of value in the business organization. Both strategic approaches are inclined to having as strategic continuity which does not imply a static view of competition (Whittington, 2002). Therefore, all organizations must continually improve their operation effectiveness in order to shift the productivity frontier.
   
Business strategies are choosing to perform activities that are far much different than the ones performed by other rivals. All the four approaches to business strategy are diversely different. However, there are similarities that are evident in both the process and the outcome of the strategy used. Every business organization should have a clear strategic positioning that it should follow until it reaches such targets as profit margins, customer satisfaction and competitive market advantage (Cuizon, 2007). The four approaches to business strategy enable the organization to achieve these objectives. It is also imperative for every business organization to perform these strategies in a unique manner that will be difficult for other rivals to imitate or copy. Therefore, operational efficiency is not strategic though they are activities that improve the productivity of the business organization by making the existing methods more efficient, they can be easily copied by other business organization (Ketchen, 2008). The one factor that makes the business strategies hard to imitate is as a result of the complex interaction between different activities (Hughes, 2005). Therefore, any business organization that concentrates only on the operational efficiency will end up losing their competitive advantage and, on the other hand, might not meet the objectives of the organization.

Reasons for Carrefour moving into Asian Market.

In 1989 Carrefour first made the decision to move into the Asian markets by moving into Taiwan, the reasons for moving into the Asian markets can be called unique to say the least, the first and the foremost reason for moving into the Asian markets was that even though they had low GDPs they had made the transition to mass consumption and they were more mature markets now. The way that Carrefour went about it was even more unique, since they did not have much knowledge about the Asian markets they built partnerships by collaborating with local firms and manufacturers.

Another important factor over here that was taken into consideration by Carrefour was the element of timing, timing was very crucial because to have any substantial and long lasting impact Carrefour had to be the first one to move into the Asian markets, at a time when most firms were delaying there entry because of the Asian crisis Carrefour was able to move into these markets because of their low prices and this actually worked in favor of Carrefour because people were able to buy products at extremely low prices and that was critical at the time of crisis. Another reason for entering into the Asian markets was that it was culturally a different phenomenon, people were moving towards more impulse buying rather than just necessity shopping, culturally it was a different phenomenon, it was a totally different shopping experience for people, a trip to Carrefour became a family outing in a lot of ways.

Carrefour is a company that has not totally relied on research all the time it has been a combination of instinct and market research for example when the company was conducting a market research on whether it should enter Romania or not they had very negative results and the decision that would have been taken according to those results was not to enter Romania but carrefour did not back out due to the results of the research because they had a gut feeling or an instinct that it would not be a bad decision at all and at the end of the day that is exactly what it turned out to be , a very good decision. So another reason for entering Asia could be that it had an instinctive feeling that they would do well in a place that has matured to a certain extent and would be able to accommodate carrefour. Another reason that carrefour decided to enter this market was that they had seen that the pattern for shopping and nature of goods had been changing, the nature of goods were becoming more and more westernized and that is why carrefour decided to enter the market with its global more westernized brands all available to the customers just under one roof.

Ansoff Matrix
The ansoff matrix is a tool that is basically used by companies to exactly pin point what they want to do and what are the strategies that they would require to pull of their objective. For example if a company is not introducing anything new into a market then it needs to go for market penetration strategy which means that they would have to advertise very aggressively, they would have to price their product so that they are able to effectively penetrate the market and may also have to come with bundle offers such as buy one and get one free so that more and more customers try their products.

The same is the case when a company wants to introduce new products into an existing market, it would have to engage in product line extension both vertically as well as horizontally and it might also have to bring in new products altogether into the market.

The third scenario is the new products and new market segment where there is a need for the business to develop associations with the local businesses and attack new market segments which previously had not been targeted, the move might also prompt take over of smaller business competitors in the new market.
The fourth strategy is basically the one that Carrefour engaged in. The market development phenomenon, according to the Ansoff matrix because it introduced its existing products into new markets, this strategy consists of expanding your market geographically, which Carrefour did very effectively by moving into the

Asian markets in a number of countries. It targeted a new consumer segment, which was totally unaware of the hypermarkets phenomenon, and since it had the first mover advantage in most of these markets it emerged as the clear winner in most of the markets and today these markets account for 13 of all the sales of Carrefour globally. Another element of entering into the new markets is that you need to build global and local alliances because the company might not be very aware of the markets and this was also an element of Carrefour expanding into the Asian markets very effectively. The strength of carrefour remains in the size of its business, it stocks very large number of units for each and every brand and hence has the power to negotiate because of the economy of scale, but good companies drive the advantage home rather than just using it, same was the case with carrefour. What carrefour did was to implement a GNX system in 200 where by the store and the suppliers could interact in a more efficient and effective manner.

Another important element when entering into new markets, human resources is an element that has to be kept in mind because if there is a scarcity of high quality labor or the number of people available to work for you then it might be a cause of concern for the company because people make the company, it is interesting to note down carrefours strategy over here. When opening up a new market in a country what carrefour does is to basically employee experienced expatriates as the head of the departments where as the local human resources is hired and sent off to a country in the region where carrefour is already successfully operating so that they can gain know how of the business and then they are called back to the country of origin, what this does is that it integrates the experience of running the store and knowing the internal policies and culture with the local knowledge and culture, which is a very effective collaboration.

These were the tools and strategies that were used by carrefour in a very effective and efficient way and they had not missed out on anything in fact they have taken this strategy to the next level by also highlighting the effect of training local human resources when entering a new market and have provided a framework to do so as well, existing productsNew markets lead to market development in the ansoff matrix and that has been achieved by carrefour in Asia and they have kept on growing where ever they have seen an opportunity to grow and where ever they feel the market is mature enough to accommodate them.

Competitive Advantages
Carrefours competitive advantages include
One stop shopping solution for the whole family, this means that consumers would find each and everything under one roof only and they would not have to go anywhere for their shopping needs. This concept was very important in the Asian markets because it was different from the traditional methods of shopping.
Low prices have always been competitive advantage in the case of Carrefour because of their stocking model, Carrefour stocks almost 50,000 stocks of each and every product and hence is able negotiate very low prices that are transferred on to the consumers by keeping very low margins at times as low as 2.5 net margin. Carrefour promotes new products daily, pricing them at really low prices and challenging their that they can refund their products if they can find them anywhere else at lower prices.

Retailers in these markets were traditionally over the counter oriented and Carrefour introduced self-service which gave the customers the option to look at the products more closely and gauge them accordingly, another important element was that Carrefour introduced more variety under one roof which was very crucial to Carrefours success.

Quality products have been a strong forte of Carrefour, it stocks only quality products and at that too high quality products so that customers can have the highest shopping experience possible. Carrefour had an edge over the competitors because of its global alliances with product manufacturers, which meant that it not only provided highest quality products but also that too at the lowest prices possible and this means that there is more traffic for carrefour because it not only provides the highest quality of fresh goods but it also has the widest variety of the goods.

Freshness of the products is also a very important factor because Carrefour deals with perishable items and it had to ensure that their customers got the goods that were fresh in nature.
Free parking and a lot of parking space ensured that the customers had a good shopping experience because they did not have to go through the hassle of finding parking places in highly congested markets, to add to this experience Carrefour also added play places so that women coming in with children could let their children play as they shop to get the highest degree of satisfaction.

Technology is another factor of carrefour competitive advantage, as mentioned before it introduced the GNX system of procuring supplies from the suppliers in a more efficient and effective manner and this lead to lowering it costs considerably. All the other major super markets and hyper stores were just followers in this program, this shows that carrefour is pretty proactive in establishing what needs to be done to secure the future of the company and how to bring the costs down to the bare minimum.

Neuro-Linguistic Programming

Neuro-Linguistic Programming (NLP) is a three component phenomenon that is incorporated in the development of the human experience. The three components are neurology, language, and programming. The neurology regulates the functioning of our bodies the language governs our interaction with other people, whereas the programming determines, which models of the world we are able to create. Thus, Neuro-Linguistic Programming describes the elementary dynamics involving the mind and language, and how their relationship impacts on our bodies and behaviour. NLP is, therefore, a multi-dimensional process, which involves the development of behavioural proficiency and flexibility. It also involves thinking strategically and having a clear understanding of the rational and cognitive processes responsible for a particular behaviour. NLP, therefore, is a set of tools and techniques responsible for the improvement of the awareness of an individuals beliefs, behaviour, and how she can relate at higher levels.
   
Historical Background of NLP
Neuro-Linguistic Programming is a concept that was developed in the 1970s by an information scientist and a linguist known as John Grinder and Richard Bandler respectively. These scholars observed that individuals with similar education, training, experience, and background recorded different results ranging from excellent to poor ones. These scholars wanted to understand the secret of effective performance. Their study zeroed in on the communication aspect and they were interested in how the successful members of the society communicated. They eventually came up with thinking patterns, which they associated with the success of the individuals. They concluded that the brains could learn the healthy patterns and behaviours and, thus, leading to positive physical and emotional impacts (Dilts, 1999).
   
NLP and Business
NLP is regarded as a powerful concept that is thought to possess positive and useful aspects of psychology. This puts it in an important position in influencing personal and interpersonal interactions therefore NLP has a lot of benefits in self development, businesses and organizations. For example, NLP enhances better communication in customer services and selling. It improves understanding in communication, especially, when it is face-to-face. This becomes important, especially during interviews and appraisals. NLP has also proved to be handy for stress management, developing of self confidence and assertiveness. NLP also encourages empathy, which enables one to apply ethics while observing moral standards. These are very salient features of good management in the current world for the success of businesses (Smith, 2008).

NPL more often than not, works on many presuppositions that are in support of the view that change is always in the offing. This is equally important to todays business managers in the ever-changing business environment, where flexibility is very crucial. One of the most important factors regarding NLP concerns what can work and what cannot. The two are distinct, and if what youre engaged in, does not work, then try a different thing regardless of whether your initial efforts should have worked. Flexibility is the key element here and the emphasis is on the fact that to excel, one has to respond to the changing environment accordingly. NLP is much interested in fulfilling peoples potential by giving them what they want in life (Webmaster, 2009).

NLP is a model that can be used to enhance effective communication, personal change and development. Whatever goes on in an individuals mind impacts on ones language and beliefs. This in turn affects behaviour. Thus, it forms a synergetic process in the individual with the whole being greater than the individual parts of the process. NLP looks at how we think and feel and focus on excellence in our day to day life. Therefore, NLP gives one the consciousness in choosing on what to do and how to do it. The self awareness is crucial in self management and influence on others. This begins with the fundamental realization that we are not similar, and thus, we differently react to situations and we use different language at different times. To be able to build interpersonal relationships, we need to have appropriate strategies to understand the people around us (Naicke, 2009).

The ability to manage self affects the extent to which we are destined to achieve our goals. To achieve business success, one has to be a good manager. Among other skills, NLP provides for being able to read the unconscious mind. This is important in managing personal development projected towards achieving full potential of the individual. According to Kotelnikov,
NLP is a process of discovery and as such it is about continually uncovering new ways of thinking and working. It is a process of continuous learning and growth, and key to profound personal development By using NLP you can give yourself more conscious choice over what you do and the way you act (paragraph 5).
   
NLP has been used in almost all aspects of human life, for example, in boardrooms across the world, and the results have been amazing. Those individuals, who have a good mastery of the NLP concept, and are applying it appropriately, behave in a unique manner and are rewarded with amazing results. Successful business people have admirable characters that make them special. They are always open and they dont panic when under pressure. This is what NLP refers to as alignment which means achieving congruency and having complete self belief. NLP is all about being aware of all your senses both physical and emotional (Lusardi, 2002).

NLP has yielded numerous techniques that can be used at a personal or professional level. Businesses around the world have employed these techniques in different areas in order to achieve success. As a business strategy, NLP will enable you to reach and influence others as well as be aware of yourself in order to be able to improve your weaknesses. It also helps managers in the analysis of success secrets of the best employees and be able to teach others these secrets which can have a tremendous positive impact to the success of the business. NLP teaches on customer relation skills which are very crucial in the competitive business world (Kotelniko, 2009).
   
The argument that anything that comes to your mind is achievable draws much from NLP. NLP helps individuals in discovering the utilization of the power of mind to achieve full potential. NLP is not only about positive thinking and attitudinal change. It also encompasses skills to reach high levels of success and fulfillment in all aspects of life including professional and personal relationships. In the business world, NLP may influence, motivate, or break the belief that may be holding individuals from achieving the elusive success they are yearning for. Most of the business leaders around the world are now involved in learning new skills in NLP which gives them an edge in the competitive world to achieve success (MacKay, 2009).
   
Managing in modern days requires flexibility, due to the rapid changes that engulfed the business world. Most managers today have shifted from the classic-based managerial practices to managing the new challenges of complex relationships in the organization. This was due to the realization that maintaining harmonious relationships at the workplace proved to be an important aspect in the companies to realize sustainability in growth. Managers have to master the art of working in teams as well as being able to influence others, motivating them to achieve corporate goals. This can be practiced by some individuals through intuition but can also be learnt and mastered through NLP techniques (Kotelniko, 2009).
   
NLP has been identified as a new revolution in the world of businesses, since it guarantees effectiveness at the workplace. It has provided useful information in building relationships and cooperation in achieving both the personal and corporate goals.  NLP strategies can be applied at the workplace to bring about a harmonious relationship and better customer relations. These are the most essential skills a business requires to survive the cut-throat competition that has been witnessed in the modern world. NLP, therefore, presents a unique phenomenon designed to address the new challenges facing the world. Most business executives have enrolled in schools offering NLP skills to be able to improve and maintain profitability in their businesses.