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A Key Part of the Business Strategy for Carrefour Involved

Question 1

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A key part of the business strategy for Carrefour involved placing stores in big malls where the main competition was from small, locally owned stores. What is the rationale behind this strategy?


A) Allowing small, locally owned stores to benefit from competition with a giant like Carrefour.
B) To maintain a competitive edge - small stores cannot compete with Carrefour's prices because Carrefour is able to pass to consumers some of its cost savings from economies of scale.
C) Carrefour owners -believe that big malls are more attractive to consumers.
D) Carrefour recognizes the need to locate in big malls because it is more cost -efficient.

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