Case Analysis of Wumart

Group 7b- Xiqing Deng xiqing@kth.se- Ender Yunus endery@kth.se- Jonatan Schwamberg 20913@student.hhs.se

Wumart stores - introduction

The resource-based view of strategy

Resources vs capabilities

Wumarts competitive advantage: inimitability

Wumarts competitive advantage: durability

Wumarts competitive advantage: appropriability

substitutability

competitive superiority

Supply and social Networks in Home Market

Wumarts competitive advantage: sustainability

Good relationship withGovernment : Inimitable

Wumarts expansion strategy

Wumarts expansion strategy: geographical

growth

Wumarts expansion strategy: competitive advantage in China

Wumarts expansion strategy: diversified growth

Wumart in the future: China

Analysis:• Sustainable position, at least for a long time• The relationship with the government is a strong advantage against imitation• However, there is a lot of uncertainty with the sustainability of other competitive advantages, especially out of its home market region

Wumart in the future: international

Analysis:• Enter other geographical markets could be difficult

• The mature business model of large retail companies with international ambition like Wal-Mart may have occupied the market in most countries

• Some countries in which local enterprises take the main market share, like Sweden. • Since the retail industry is indispensable one, it has been developed fully by every region. Without ample funds and local resources (supply chain, social connection, etc.), Wumart would face large challenge when competing with local retailers.

Reference

• Collis Montgomery: ”Competing on Resources”

• ALI FARHOOMAND, ZHIGANG TAO: ”Wumart stores: China´s response to Wal-Mart”

• Wumart’s Official Website: www.wumart.com