sse wumart group5a_2011
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WuMart CaseMedia Management - 2304Group 5aLudvig (40089@student.hhs.se)Eva (40196@student.hhs.se)Vinay (vinayd@kth.se)
Competitor Analysis of WuMart (Q 1&2)
vs
“If you want to get a glimpse of the future of retail, skip the trip to Wal-Mart, buy yourself a ticket to Beijing, and check out WuMart instead.”
- Fortune Magazine 2006
FiveA Consulting
Competitive AdvantageWuMart
• Resources & Capabilities• Early commitment to information technology• Multiple store formats• Political involvement and philanthropic activities
• Close tie with regional governments• Prime locations at low costs
• Geographical concentration• Market Leadership• High recognition of brand name • Knowledge of regional consumer needs• High bargaining power with suppliers - EDLP
• Strong corporate culture
FiveA Consulting
Competitive AdvantageWuMart
• Sustainability against international entrants? YES! (at least at the beginning…)
• Knowledge of the local market• Established and well-known brand• Multiple store formats • Control of prime locations• Corporation with local government/ suppliers
• Sustainability against imitations?YES!
Regional Concentration
FiveA Consulting
International Expansion Strategy (Q 3&4)
International ExpansionSWOT
Strengths
• Prime location strategy • Early adopters of high-tech
systems• Good financial health• Experience in handling
volumes • Eye on competitor pricing
Weaknesses
• Brand-name’s sense of imitability
• Dependence of regional governments
• No prior foothold abroad• Communication strategy• Acceptance of a culturally
different executive staff
International ExpansionSWOT
Opportunities
• Adaptive retail store format• Showcase product diversity• Collaborating with local
franchises • Low-cost asset expansion
Threats
• Pre-existing consumer mindset
• Competitor imitation• Delay in entering the
international market • Consumer skepticism to
Chinese products
For sustained performance
• WuMart should adopt new brand names for other retail sectors
• Focus on building relationships with new suppliers and distributors
• More investment in marketing & brand-building
Shopping in Wumart doubles your salary - WuMart
The aspiration of Wumart is to be become the best, not the largest - Zhang Wenzhong, chairman, WuMart stores
Questions?
Bibliography
• http://infoseekchina.wordpress.com/category/china-convenience-stores/page/2/
• http://de.academic.ru/dic.nsf/dewiki/1482442• http://www.slideshare.net/Ultrax75/sse-wumart-group6• http://www.post-gazette.com/pg/06292/731377-28.stm• http://www.slideshare.net/zhaoxuan00707/ssewumart-
presentationgroup10ppt • Wumart Stores: China’s Response to Wal-Mart
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