Wumart Stores is China's largest retailer and response to Western giant Walmart entering the Chinese market. The document discusses Wumart's sources of competitive advantage including tangible assets and intangible capabilities. It examines the sustainability of Wumart's competitive advantage domestically and potential to transfer it internationally. It provides recommendations for Wumart such as building a strong domestic presence, exploring joint ventures, continuing government relations, and long-term international expansion planning.

1. Media ManagementCase: Wumart Stores: China’s response to Wal-Mart Group 1a Ekaterina, 40192@student.hhs.se Franziska Niklas Maria

2. competitive advantage of Wumart: sources and sustainablity

3. Sources of competitive advantage Tangible Intangible Capabilities

4. Sources of competitive advantage Tangible Intangible Capabilities

5. How sustainable is Wumart’s competitive advantage domestically?

6. Transferring competitive advantage and leveraging resources

7. Ability to transfer competitive advantage to other countries

8. Key points of transferring competitive advantage Risk of failure when expanding globally is high Good opportunities to further expand in China with other retail formats Government connection is key but hard to transfer

9. Expansion potential to other retail sectors and formats Build on existing brand image Established networks, logistics, customer knowledge Support of the government However , there is threat of loosing core focus Specialty franchise store Clothing store Private label Drug store

10. Sustaining Wumart’s performance in the future

11. Challenges Wumart faces Risk of losing other attractive markets before they are saturated by rivals Changes in government policy Awareness of brand name only in home region, not in other areas Market research for new markets Transfer “Beijing model” toother regions

12. Recommendations to Wumart Build strong presence over all of China Explore Joint Venture opportunities (consolidation) Continue to build relations with government , BUT also consider how to work without governmental support Be on front edge of technology

13. Long term planning of international expansion strategy Employ foreign top-managers Joint Ventures Market Research

14. References Collis & Montgomery, “Competing on Resources” Farhoomand A., Tao Z., ”Wumart Stores: China’s Response to Wal-Mart»,Harvard Business Review 07/317C