Wumart Stores is China's largest retailer and response to Western giant Walmart. Wumart has competitive advantages over local competitors through its IT expertise, corporate culture, brand equity, store formats, and everyday low pricing strategy. Key capabilities include regional knowledge, close government ties, corporate social responsibility programs, and strong supplier relationships. However, Wumart does not have the same financial or management resources as Walmart. The document recommends Wumart leverage its local strengths by opening new specialized store formats, expanding to fast-growing cities, strengthening relationships, and considering franchising and brand extensions over time to maintain its competitive position in China.