Sse Wu Mart Q(3 4) Group1
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Wumart Stores faces challenges in expanding internationally from China into developed countries due to lacking relationships with foreign governments, weaker bargaining with foreign suppliers, and brands not being as well known overseas. Additionally, Wumart's resources and capabilities are specific to China and developing countries rather than having technical advantages over developed countries. Domestically, Wumart must defend against competitive threats from international retail formats entering China, local imitation, and local competition through maintaining price and quality advantages, updating technology, expanding market share nationally, pursuing potential joint ventures, strengthening private brands, and using promotional advertising.
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- 1. WUMART STORES:CHINA’S RESPONSE TO WAL-MART Gkanidou Effie 40096 Han weiqiang 70399 ZhangWenrong 70407
- 2. Weaknesses to entry international market Wu Mart has an understanding of the Chinese behavior & lifestyle international? Lack of relationship with foreign governments and bargaining ability with foreign suppliers Competitive advantages that cannot be transferred
- 3. Weaknesses to entry international market No more technical advantage compared to developed countries Low brand awareness Lack of capital High labor and fixed costs Therefore, Wu Mart’s resources and capabilities is just specific to China or developing countries
- 4. What challenges does it face? The entry of international retail formats Imitation Local competition
- 5. How can it defend against competitive (and other) threats? Price advantage and high quality Update technology, ERP Expand market share to northwest and east regions and medium sized cities Potential joint-ventures Strengthen Wu-Mart private brand Promotion ad, “leaflet”