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Admart case study

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A case study on Admart

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Admart case study

  1. 1. AdMART Submitted By: Ranjeet Kumar Singh(11BM60068) Case-Study
  2. 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. 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. 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)
  5. 5.   •Tie-ups with the suppliers should be established before hand and the  relationship should be maintained properly. •Extensive research to make sure that the idea will work out as planned. •Product quality is of utmost importance and should not be  compromised.  •Important to establish and maintain healthy customer relationships. •Contingency plan should be put in place Lessons Learnt
  6. 6. • 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
  7. 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