7. Sustainability of Wumart‘scompetitveadvantage Difficult to imitate: Physical uniqueness of store locations Corporate culture Well-known, strong brand Good reputation Market knowledge Network to local suppliers and local government Sustainablecompetitveadvantagein thepresentmarket
8. Questions Have international competitors penetrated the market? Formats, geographical scope, pricing etc. How familiar is Wumart with the similarities and differences between retail environment in China vs. other countries? Regional or national taste? Preferences of different retail formats? Mission and Vision of the company?
9. Expanding to new markets – leveraging existing resources Transferrable Non-transferrable Logistic knowledge Low-cost expansion strategy Brand name? Corporate culture Everyday low-prices Regional consumer knowledge Regional relationships with suppliers Prime low-cost locations Expand to citieswherestores in prime locationscanbeacquired to reasonablecosts (e.g.smaller, fast-growingcities in China butnotinternationally
10. Expanding to new retail formats – leveraging existing resources Current formats Possible new formats Hypermarkets Suburban, household goods (self developed brands), self selection Supermarkets Residential areas, FMCG, self selection, long opening hours Convenience stores Residential and business areas, self selection, long opening hours Department stores Downtown and elegant Specialty stores Downtown, specialty goods, professional advice Warehouse market Suburban, household goods (regular brands), self selection New formatswouldnotbe in linewiththe brand
11. The future – recommendations Timing – keep track of competitors and of market opportunities in the Chinese market Build up regional market knowledge and supplier networks to expand to other cities in China Continue IT-development and gather consumer data (consumer preferences) Don‘t lose your closeness to the consumers
12. The international players are not there to serve the Chinese consumers on a day-to-day basis! You should always be there.
Notes de l'éditeur
Resource based view of the firm: A) Unique resources and core competences* B) Dynamic capabilities* C) Operational excellence* D) Strategic capabilities, which are valuable to buyers, rare, robust, and non-substitutableFor the first Q: Do the checklist