SSE Wumart Group1b 2011
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SSE Wumart Group1b 2011

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SSE Media Management Group Assignment, Wumart International Expansion Case, Group 1b

SSE Media Management Group Assignment, Wumart International Expansion Case, Group 1b

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SSE Wumart Group1b 2011 SSE Wumart Group1b 2011 Presentation Transcript

  • 1/23/2011 Stockholm School of Economics - Media Management 2011 1 Analysis of your competitive advantages KegWimsey Consulting Group 1b Nadine Nordland, Sven Ahrens, Anton Israelsson, Fredrik Kihlberg
  • Six sources of competitive advantage identified 1/23/2011 Stockholm School of Economics - Media Management 2011 2 1 Brand Image Technology Store Formats Political Connections Locations Consumer Insights • Strong on local market • High bargaining power with suppliers • Modern IT systems • Thorough use • High fit with 10$ average spending • Necessary in Chinese retail landscape • Access to prime locations • Close to customer • No car needed • Deep understanding of buying habits • Fast identification of needs/buying trends
  • Most competitive advantages sustainable in China 1/23/2011 Stockholm School of Economics - Media Management 2011 3 2 Brand Image Technology Store Formats Political Connections Locations Consumer Insights • People know and love Wumart • Carrefour/Metro/Walmart unknown  time needed • Easily imitable • Buying habits change • Competition could change hypermarket focus • Establishing “face” is difficult and timely • Patriotism • Prime locations in Beijing are locked • Easier access in other cities • Chinese understand Chinese better
  • 1/23/2011 Stockholm School of Economics - Media Management 2011 4 What to do in 2011? Wumart Inhouse Consulting
  • International expansion difficult 1/23/2011 Stockholm School of Economics - Media Management 2011 5 3 Brand Image Technology Store Formats Political Connections Locations Consumer Insights
  • Expansion into other areas only with great care 1/23/2011 Stockholm School of Economics - Media Management 2011 6 3 • Brand dilution – watch out! • Fast food? • Electronic devices? • High-quality supermarket? • External expertise needed • Market analyses • Financial requirements • Legal issues
  • Turn challenges into opportunities 1/23/2011 Stockholm School of Economics - Media Management 2011 7 4 CSR Imitation Competition Buying Habits 1 2 3 4 5 6 7 Expand in China with various brands Commit to quality and EDLP Play nice, play fair, and give Use our network, both in politics and business Introduce private labels Never forget our customers Innovate in the stores
  • Bibliography 1/23/2011 Stockholm School of Economics - Media Management 2011 8 B • Various presentations of MM 2010 • http://www.wumart.com, accessed via Google Cache on 22 January 2011 • Collis & Montgomery, Competing on Resources • Regnér, Strategy-as-practice and Dynamic Capabilities: Steps towards a Dynamic View of Strategy