WumartWumartWumartWumartThe Wal-mart of China?The Wal-mart of China?

Group 6John Hallberg 70398

Pierre Jarméus 20967

Carl Sundberg 40083

Simone Masog 40098

Group 6John Hallberg 70398

Pierre Jarméus 20967

Carl Sundberg 40083

Simone Masog 40098

Freaky Consulting Inc.Freaky Consulting Inc.Freaky Consulting Inc.Freaky Consulting Inc.

WWWe deliver shocking results!We deliver shocking results!

The sources of Wumart’s competitive advantageThe sources of Wumart’s competitive advantage

Solid understanding in how to run a modern retailer, strengthened by technology

Solid understanding for the politics and people within the region

Good ties to local authorities and an ability to take over previously government run shops and use their untapped potential

Based on the tactic above, they have access to prime locations

Solid communication and an ability to analyze the competition

Strong brand within the region

Solid understanding in how to run a modern retailer, strengthened by technology

Solid understanding for the politics and people within the region

Good ties to local authorities and an ability to take over previously government run shops and use their untapped potential

Based on the tactic above, they have access to prime locations

Solid communication and an ability to analyze the competition

Strong brand within the region

The sustainability of Wumart’s competitive advantage domesticallyThe sustainability of Wumart’s competitive advantage domestically

Acceptance in and understanding of the region will be difficult to gain by foreign companies

Many prime locations are already controlled by Wumart

Multi-format retailing makes them different from many of the foreign competitors and gives them an edge by having both big and small stores

Wumart’s business philosophy might be useful when countering the foreign companies, like Wal-mart

However, foreign companies have the same or better resources and will through time learn to understand the region

Acceptance in and understanding of the region will be difficult to gain by foreign companies

Many prime locations are already controlled by Wumart

Multi-format retailing makes them different from many of the foreign competitors and gives them an edge by having both big and small stores

Wumart’s business philosophy might be useful when countering the foreign companies, like Wal-mart

However, foreign companies have the same or better resources and will through time learn to understand the region

Wumart’s internal consultancyWumart’s internal consultancyWumart’s internal consultancyWumart’s internal consultancy

Transferability of the competitive advantage to other countriesTransferability of the competitive advantage to other countries

Their current relationships will be hard to just “move”

If they move toward for example Germany, they will face competitors that are not foreigners to high tech retail management. Furthermore, they will fight very well coordinated retail chains with very strong resource bases

If they find countries that lack strong, well managed, retail firms they might be able to make a move through their high tech and modern way of handling retailing. But they have to be quick and expect strong future competition!

Short answer: They lack core competences that would be unique when going for domestic markets and would probably be better off focusing on China

Their current relationships will be hard to just “move”

If they move toward for example Germany, they will face competitors that are not foreigners to high tech retail management. Furthermore, they will fight very well coordinated retail chains with very strong resource bases

If they find countries that lack strong, well managed, retail firms they might be able to make a move through their high tech and modern way of handling retailing. But they have to be quick and expect strong future competition!

Short answer: They lack core competences that would be unique when going for domestic markets and would probably be better off focusing on China

Transferability of the competitive advantage to other retail sectors and formatsTransferability of the competitive advantage to other retail sectors and formats

Their skill in retail management and high tech systems would likely be transferable to other retail formats

However, there might not be many opportunities for it

Some retail sectors might work, however in general we are unsure that the capabilities in the form of know how and brand values exist. Nevertheless, if done under a different brand and with help from specialists we do see some potential. The product should be benefited from strong local knowledge and connections as well.

Their skill in retail management and high tech systems would likely be transferable to other retail formats

However, there might not be many opportunities for it

Some retail sectors might work, however in general we are unsure that the capabilities in the form of know how and brand values exist. Nevertheless, if done under a different brand and with help from specialists we do see some potential. The product should be benefited from strong local knowledge and connections as well.

How to sustain performanceHow to sustain performance

Remember who you are

Do not underestimate the competition

Focus on the fact that you are a local brand and build on that

Due to the strong and local brand, consider having your own private label

Focus on smaller, easy to reach stores

Keep a good financial health since the foreign competitors likely can sustain long periods of losses

Remember who you are

Do not underestimate the competition

Focus on the fact that you are a local brand and build on that

Due to the strong and local brand, consider having your own private label

Focus on smaller, easy to reach stores

Keep a good financial health since the foreign competitors likely can sustain long periods of losses