WuMart CaseMedia Management - 2304Group 5aLudvig (40089@student.hhs.se)Eva (40196@student.hhs.se)Vinay (vinayd@kth.se)

Competitor Analysis of WuMart (Q 1&2)

vs

“If you want to get a glimpse of the future of retail, skip the trip to Wal-Mart, buy yourself a ticket to Beijing, and check out WuMart instead.”

- Fortune Magazine 2006

FiveA Consulting

Competitive AdvantageWuMart

• Resources & Capabilities• Early commitment to information technology• Multiple store formats• Political involvement and philanthropic activities

• Close tie with regional governments• Prime locations at low costs

• Geographical concentration• Market Leadership• High recognition of brand name • Knowledge of regional consumer needs• High bargaining power with suppliers - EDLP

• Strong corporate culture

FiveA Consulting

Competitive AdvantageWuMart

• Sustainability against international entrants? YES! (at least at the beginning…)

• Knowledge of the local market• Established and well-known brand• Multiple store formats • Control of prime locations• Corporation with local government/ suppliers

• Sustainability against imitations?YES!

Regional Concentration

FiveA Consulting

International Expansion Strategy (Q 3&4)

International ExpansionSWOT

Strengths

• Prime location strategy • Early adopters of high-tech

systems• Good financial health• Experience in handling

volumes • Eye on competitor pricing

Weaknesses

• Brand-name’s sense of imitability

• Dependence of regional governments

• No prior foothold abroad• Communication strategy• Acceptance of a culturally

different executive staff

International ExpansionSWOT

Opportunities

• Adaptive retail store format• Showcase product diversity• Collaborating with local

franchises • Low-cost asset expansion

Threats

• Pre-existing consumer mindset

• Competitor imitation• Delay in entering the

international market • Consumer skepticism to

Chinese products

For sustained performance

• WuMart should adopt new brand names for other retail sectors

• Focus on building relationships with new suppliers and distributors

• More investment in marketing & brand-building

Shopping in Wumart doubles your salary - WuMart

The aspiration of Wumart is to be become the best, not the largest - Zhang Wenzhong, chairman, WuMart stores

Questions?

Bibliography

• http://infoseekchina.wordpress.com/category/china-convenience-stores/page/2/

• http://de.academic.ru/dic.nsf/dewiki/1482442• http://www.slideshare.net/Ultrax75/sse-wumart-group6• http://www.post-gazette.com/pg/06292/731377-28.stm• http://www.slideshare.net/zhaoxuan00707/ssewumart-

presentationgroup10ppt • Wumart Stores: China’s Response to Wal-Mart