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  1. 1. moving forward<br />Wumart<br />EmelieLevall, CharlottaStorckenfeldt, Johan Ericsson, Alexandra Drissner,<br />
  2. 2. Wumart‘scompetitveadvantage<br />Branding<br />
  3. 3. Processes<br />Wumart‘scompetitveadvantage<br />Processes<br /><ul><li>Commitment to IT
  4. 4. Logistic</li></ul>Network<br /><ul><li>Collaborations and relationshipswithgovernment
  5. 5. Supplierrelationships</li></ul>Network<br />
  6. 6. Competitoranalysis<br />Single-formatstrategy (Hypermarkets)<br />National presence, rapid expansionstrategy<br />Strongfinancialcapacity<br />Economies of scale<br />IT systems<br />Limited regional marketknowledge<br />Ratherweaksupplierrelationships<br />
  7. 7. Sustainability of Wumart‘scompetitveadvantage<br />Difficult to imitate:<br />Physical uniqueness of store locations<br />Corporate culture<br />Well-known, strong brand<br />Good reputation<br />Market knowledge<br />Network to local suppliers and local government<br />Sustainablecompetitveadvantagein thepresentmarket<br />
  8. 8. Questions<br />Have international competitors penetrated the market? <br />Formats, geographical scope, pricing etc. <br />How familiar is Wumart with the similarities and differences between retail environment in China vs. other countries?<br />Regional or national taste?<br />Preferences of different retail formats?<br />Mission and Vision of the company?<br />
  9. 9. Expanding to new markets – leveraging existing resources<br />Transferrable<br />Non-transferrable<br />Logistic knowledge<br />Low-cost expansion strategy<br />Brand name?<br />Corporate culture<br />Everyday low-prices<br />Regional consumer knowledge<br />Regional relationships with suppliers<br />Prime low-cost locations<br />Expand to citieswherestores in prime locationscanbeacquired to reasonablecosts (e.g.smaller, fast-growingcities in China butnotinternationally<br />
  10. 10. Expanding to new retail formats – leveraging existing resources<br />Current formats<br />Possible new formats<br />Hypermarkets<br />Suburban, household goods (self developed brands), self selection<br />Supermarkets<br />Residential areas, FMCG, self selection, long opening hours<br />Convenience stores<br />Residential and business areas, self selection, long opening hours<br />Department stores<br />Downtown and elegant<br />Specialty stores<br />Downtown, specialty goods, professional advice<br />Warehouse market<br />Suburban, household goods (regular brands), self selection<br />New formatswouldnotbe in linewiththe brand <br />
  11. 11. The future – recommendations<br />Timing – keep track of competitors and of market opportunities in the Chinese market<br />Build up regional market knowledge and supplier networks to expand to other cities in China<br />Continue IT-development and gather consumer data (consumer preferences)<br />Don‘t lose your closeness to the consumers<br />
  12. 12. The international players are not there to serve the Chinese consumers on a day-to-day basis! You should always be there. <br />