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AHOLD : The Biggest

Supermarket Retailer You


Have Never Heard OfTEAM 3
Background

• Ahold is a large global supermarket chain


headquartered in the Netherlands.

• It is the second largest food retailer in the world


with sales of over $60 billion in 2002, but its name
does not appear on any of the several
supermarket chains it owns and operates in
countries around the world.
Aholds Companies
• US- • Europe -
– Stop & Shop
– Albert Heijn
– Giant-Landover
– Etos
– Giant-Carlisle

– Gall & Gall


– Martin's

– Peapod – Albert

– Hypernova
Subsidiaries
Objective
• The case describes Ahold's
global and U.S. strategies
and competitive strengths
vis-à-vis other large food
retailers such as Wal-Mart
and Carrefour.
Question 1
• WHAT ARE THE ADVANTAGES AND
DISADVANTAGES OF THE GROWTH
STRATIGIES PURSUED BY AHOLD,
CARREFOUR AND WAL-MART ?
Aholds Strategies
• Multi-local

• Multi-format

• Multi-channel

• Culture- first and foremost the


culture of local operating guy
Growth Strategy
• Revenue from chains acquired

• Motive : “Going global with


a local face”

• Walmart and Carrefour :


“Global retail brand”
Difficulties in terms
of:
• Tastes and preferences

• Distribution channels

• Culturally embedded value


systems

• Difficulty in establishing
common retail model
Rationale
• Consumer behavior changing

• Competition intensifying

• Performance under pressure

• Locally, the product lines are


flexible and adaptable to individual
customer requirements, as are the
store formats
Aholds Advantages
• Different nations = Different
problems, hence using different
brands Ahold has a better approach

• Similarities between nations may be


superficial.

• Global planning may be easy, but


global execution is not.
Walmart & Carrefours’
Advantages
• Global Brand – Generate
Loyalty

• Removes Confusion

• Clarity in operations &


format
Ahold: SWOT Analysis
Strengths Weaknesses
 International experience  No global brand
 Non-food, discount format,  Not in EU key markets (FR, GB,

wholsale, e-commerce D)
 Strong domestic presence  Scale vs Wal-Mart

 Ability to integrate acquisitions

Opportunities Threats
 Diversification of format  Risk of joint-venture failure

 Diversification of products  Too complicated to manage

 Acquisition of major EU retailers  Wal-Mart position in the US

 Presence increase in Asia


Wal-Mart & Carrefour: SWOT
Analysis
Strengths Weaknesses
 Scale  International presence and
 Home market strong position profits
 Technological pionneers  Low penetration in EU

 Focus on discount  Lack of international

experience

Opportunities Threats
 Growing supercenter format  Too large too manage
 Product diversification (food)  Internationalisation costs

 New markets (EU, Asia)  Union opposition

 E-commerce  Not present in large

communities
Question 2
• SHOULD AHOLD USE ITS NAME ON
ALL OF ITS STORES LIKE WAL-MART
AND CARREFOUR ? WHY OR WHY
NOT ?
Ahold Subsidiaries
 Europe  Asia  Americas
Ahold Polska Tops Stop & Shop
Ahold Czech Republic Tops Market Place Giant-Landover
Giant-Carlisle
Ahold Slovakia Tops
Ahold Supermercados BI-LO
Bruno’s
Albert Heijn
U.S. Foodservice
Schuitema
Peapod
Etos La Fragua
Gall & Gall CSU
Deli XL CARHCO
ICA AB Bompreço
Jerónimo Martins G. Barbosa
Disco
Global Branding
• Yes ,because to build the brand image and identity
in market.
• It will help them to enhance there market share and
attract more investment from shareholders.
• It will support them to enter new markets like India
and other emerging markets.
• If they use there name they can even develop there
own private label brands.
• It will help them in global expansion and market
penetration.
• It will help them to build good customer relationship
and attract new employees and customers.
• It will help them in B2B business to build strong
relationship with vendors and suppliers.
Global Branding
• Brand Awareness

• Evoke Loyalty

• Brand Re-call

• Universal Branding – Clarity,


Consistency & Maximum
communications impact
Question 3
• WHAT ARE THE ADVANTAGES AND
DISADVANTAGES OF WAL-MART’s
AND CARREFOUR’s MORE
CENTRALISED DECISION MAKING
COMPARED WITH AHOLD’s
DECENTRALISED DECISION MAKING ?
Decentralization
• Ahold’s corporate strategy is
based on decentralized decision
making and global exchange
of know-how

• Local competitiveness

• Local Retailer Flexibility & Rich


Product Mix
Centralization pros
• Emphasis on: top-down control
• Decision-making: strong
• Organizational change: shaped by
top, vision of leader
• Execution: decisive, fast,
coordinated. Able to respond quickly
to major issues and changes
• Uniformity: Low risk of dissent or
conflicts between parts of the
organization.
• Share resources
Centralization pros
• The use of standardised
procedures can results in cost
savings.
Relative advantages &
disadvantages