sse wumart group2b_2011
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Wumart Stores:China’s Response to Wal-Mart
Sofia KjellströmLu LeiAnna MononenLukas RoseRomain Aubert
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To Wal-Mart by B2 Consulting Ltd.
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Wumart’s competitive advantage
Resources: - IT expertise - Corporate Culture - Brand equity - 3 types of stores - Everyday low-price strategy
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Wumart’s competitive advantage
Capabilities: - regional knowledge - close ties with the government
- CSR - Local suppliers relations
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Wumart’s competitive advantage
Superior to local competitors, Wumart still does not possess the financial assets
and management expertise resources of Wal-Mart
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SustainabilityDifficult To Copy
Superior To Competitor
Sustainability Value Control Substitutability
It System No No No Yes Yes
Government Networking
Yes Yes No ? No
3 Stores System No No No Yes Yes
Everyday Low Prices
No Yes No Yes No
Regional Knowledge
Yes No Yes Yes No
Brand Equity Yes Yes (Locally) Yes Yes No
Corporate Culture Yes Yes No Yes No
Csr No No No Yes No
Local Suppliers Relation
Yes Yes No Yes No
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Advantages Sustainabilty Relationships with both governments and
suppliers local knowledge Brand equity (locally)
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To Wumart by B2 Consulting Ltd.
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Use the current strengthsAdvantages: Sustainable Wumart advantages are local Can not be transferred to other countries Advantages are transferrable to other retail industries
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Use the current strengthsSUGGESTIONS: Open new type of stores in China : specialized stores, fast
food… Target fast-growing cities, Tianjin, Shenzhen Communicate on their local heritage: both in existing and
new markets Implement corporate culture in franchises Strengthen relationships with suppliers and government.
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Looking into the future: Maintain and increase lobbying Franchising existing stores and open new stores once local
knowledge has been gathered Brand extension: fast-food stores would leverage on brand
equity (Keller, Strategic brand management, 2008)
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Challenges Time frame: Act really fast before competitors reach new
cities Some of Wu-Mart current advantages could be easily
copied: IT Systems, Everyday Low Prices, CSR.
WARNING:Their strategy has proved to be working in emerging markets, but it could be imitated.
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Q & A
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Bibliography http://www.slideshare.net/tslohsucram/sse-wumart-group11 http://www.slideshare.net/mynge/sse-wumart-group2 Collis & Montgomery, “Competing on Resources” http://biz.at0086.com/at_News/288/220695165416665.html Keller: Strategic Brand Management, 2008