2. • Started in early 1999 with Groceries and Electronic
products businesses
• Target- Market worth HK$55 billion per year
• Online purchase and delivery
• Direct competition with entrenched brick & mortar
retailer stores - Park’N Shop and Wellcome.
Introduction
3. Strengths
Weaknesses
• Saved on retail store setup and
maintenance cost.
• Promotion through owner’s
other well established
newspaper business
• Deep pockets
• Enjoyed good brand recall
• First mover advantage
• Virtual credit cards scheme
increased customer base
• Convenience offered
• Widespread reach(95% area
coverage)
• Lack of cooperation from local
distributors.
• Unreliable quality of imported
goods
• Traditional buying culture
• 24X7 retail store in all
neighbourhoods.
• Small order size making
delivery unprofitable
• Low internet penetration
• Low efficiency due to
distributed warehouses
• Inabilities to lower prices of
groceries due to contracts
SWOT Analysis
4. Opportunities
Threats
• Ability to cater to tech-savvy &
busy customer segment
• Cost benefits derived from nonrequirement of retail stores can
be passed on to the endcustomers
• Scope to expand product
portfolios
• Future tie-ups with the
established brands
• Horizon wise expansion of the
premier product
• High entry barriers to the
market
• Stiff Market competition from
established player.
• Replication of the model was
easy
• Deep pocketed competitors
SWOT Analysis……
(contd)
7. • The mode of ordering and delivery for both Amazon.com and
AdMART is same, but the market to which they cater was
different.
• Amazon.com charged for shipping whereas AdMART had free
shipping.
• Product quality was more relevant in case of AdMART as
compared to Amazon.com
• Amazon.com offered a greater choice of products vis-à-vis its
competitors as compared to AdMART
• Amazon.com established extensive collaborations with its
suppliers which ADMART was lacking
Amazon.com & ADMART