Wumart’s competitive advantage Capabilities: - regional knowledge - close ties with the government - CSR - Local suppliers relations
Wumart’s competitive advantage
Superior to local competitors,
Wumart still does not possess the financial assets and management expertise resources of Wal-Mart
Advantages Sustainabilty Relationships with both governments and suppliers local knowledge Brand equity (locally)
To Wumart by B2Consulting Ltd.
Use the current strengths Advantages: Sustainable Wumart advantages are local Can not be transferred to other countries Advantages are transferrable to other retail industries
Use the current strengths SUGGESTIONS: Open new type of stores in China : specialized stores, fast food… Target fast-growing cities, Tianjin, Shenzhen Communicate on their local heritage: both in existing and new markets Implement corporate culture in franchises Strengthen relationships with suppliers and government.
Looking into the future: Maintain and increase lobbying Franchising existing stores and open new stores once local knowledge has been gathered Brand extension: fast-food stores would leverage on brand equity (Keller, Strategic brand management, 2008)
Challenges Time frame: Act really fast before competitors reach new cities Some of Wu-Mart current advantages could be easily copied: IT Systems, Everyday Low Prices, CSR. WARNING: Their strategy has proved to be working in emerging markets, but it could be imitated.