A case study on Admart

1. AdMART
Submitted By:
Ranjeet Kumar Singh(11BM60068)
Case-Study

2. • Started in early 1999 with Groceries and Electronic
products businesses
• Target- Market worth HK$55 billion per year
• Online purchase and delivery
• Direct competition with entrenched brick & mortar
retailer stores - Park’N Shop and Wellcome.
Introduction

3. Strengths
Weaknesses
• Saved on retail store setup and
maintenance cost.
• Promotion through owner’s
other well established
newspaper business
• Deep pockets
• Enjoyed good brand recall
• First mover advantage
• Virtual credit cards scheme
increased customer base
• Convenience offered
• Widespread reach(95% area
coverage)
• Lack of cooperation from local
distributors.
• Unreliable quality of imported
goods
• Traditional buying culture
• 24X7 retail store in all
neighbourhoods.
• Small order size making
delivery unprofitable
• Low internet penetration
• Low efficiency due to
distributed warehouses
• Inabilities to lower prices of
groceries due to contracts
SWOT Analysis

4. Opportunities
Threats
• Ability to cater to tech-savvy &
busy customer segment
• Cost benefits derived from nonrequirement of retail stores can
be passed on to the endcustomers
• Scope to expand product
portfolios
• Future tie-ups with the
established brands
• Horizon wise expansion of the
premier product
• High entry barriers to the
market
• Stiff Market competition from
established player.
• Replication of the model was
easy
• Deep pocketed competitors
SWOT Analysis……
(contd)

5.
•Tie-ups with the suppliers should be established before hand and the
relationship should be maintained properly.
•Extensive research to make sure that the idea will work out as planned.
•Product quality is of utmost importance and should not be
compromised.
•Important to establish and maintain healthy customer relationships.
•Contingency plan should be put in place
Lessons Learnt

6. • The mode of ordering and delivery for both Amazon.com and
AdMART is same, but the market to which they cater was
different.
• Amazon.com charged for shipping whereas AdMART had free
shipping.
• Product quality was more relevant in case of AdMART as
compared to Amazon.com
• Amazon.com offered a greater choice of products vis-à-vis its
competitors as compared to AdMART
• Amazon.com established extensive collaborations with its
suppliers which ADMART was lacking
Amazon.com & ADMART

7. • The mode of ordering and delivery for both Amazon.com and
AdMART is same, but the market to which they cater was
different.
• Amazon.com charged for shipping whereas AdMART had free
shipping.
• Product quality was more relevant in case of AdMART as
compared to Amazon.com
• Amazon.com offered a greater choice of products vis-à-vis its
competitors as compared to AdMART
• Amazon.com established extensive collaborations with its
suppliers which ADMART was lacking
Amazon.com & ADMART