1. Wumart Stores:China’s Response to Wal-Mart Sofia Kjellström Lu Lei Anna Mononen Lukas Rose RomainAubert

2. To Wal-Mart by B2 Consulting Ltd.

3. Wumart’s competitive advantage Resources: - IT expertise - Corporate Culture - Brand equity - 3 types of stores - Everyday low-price strategy

4. Wumart’s competitive advantage Capabilities: - regional knowledge - close ties with the government - CSR - Local suppliers relations

7. Advantages Sustainabilty Relationships with both governments and suppliers local knowledge Brand equity (locally)

8. To Wumart by B2 Consulting Ltd.

9. Use the current strengths Advantages: Sustainable Wumart advantages are local Can not be transferred to other countries Advantages are transferrable to other retail industries

10. Use the current strengths SUGGESTIONS: Open new type of stores in China : specialized stores, fast food… Target fast-growing cities, Tianjin, Shenzhen Communicate on their local heritage: both in existing and new markets Implement corporate culture in franchises Strengthen relationships with suppliers and government.

11. Looking into the future: Maintain and increase lobbying Franchising existing stores and open new stores once local knowledge has been gathered Brand extension: fast-food stores would leverage on brand equity (Keller, Strategic brand management, 2008)

12. Challenges Time frame: Act really fast before competitors reach new cities Some of Wu-Mart current advantages could be easily copied: IT Systems, Everyday Low Prices, CSR. WARNING: Their strategy has proved to be working in emerging markets, but it could be imitated.

13. Q & A

14. Bibliography http://www.slideshare.net/tslohsucram/sse-wumart-group11 http://www.slideshare.net/mynge/sse-wumart-group2 Collis & Montgomery, “Competing on Resources” http://biz.at0086.com/at_News/288/220695165416665.html Keller: Strategic Brand Management, 2008