| Case Details: |
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| Wumart Stores: China's Response to Wal-Mart
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| Product Ref: |
07/317C |
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Company: |
Wumart Stores
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| Product Type: |
Case |
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Industry: |
Retail & Wholesale
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| Related Product(s): |
Teaching Note
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| Wumart Stores (Wumart) is an indigenous Chinese, privately owned retail chain operation founded by a private entrepreneur in 1994. The decade after its inception sees the company grow from a small, suburban supermarket to the seventh largest chain retailer with over 500 stores in China. By using a regional market positioning focusing on one of China's wealthiest regions - Beijing; using low-cost expansion strategies, taking the opportunity to restructure state-owned assets; using a multi-format store development in both the most mature and fastest growing segment; and making the earliest commitment to information technology among its domestic peers, Wumart establishes strong competitive advantages that set it apart from its domestic competition. On the company's tenth anniversary, China fully opened its retail sector to foreign participation. Vying for a share in China's vast consumer market but having been hindered by many regulatory obstacles, foreign retailing giants can now compete on a level platform backed by their ample financial resources, deep industry and management expertise, and long-term commitment to China. The market is becoming ever more competitive and is expected to experience massive consolidation. In the end, only the best performers with significant scales will survive. The test is for Wumart's management to develop strategies in order to sustain its competitive advantages in the face of challenges from both domestic peers and foreign giants, to carry on the success story and to realise eventually its ambition to become an everlasting national brand. This is a management strategy case that deals with business expansion and the source of competitive advantages and their sustainability in an emerging market environment. |
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| Functional Area : |
Strategy & General Management
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Issues: |
Sources of sustainable competitive advantage, Corporate growth and expansion, business and government, private enterprises in emerging market environment. Wumart, China, Retail, Wal-Mart, supermarket, hypermarket, consumer behaviour, competitive advantage, cost, corporate growth, expansion strategy, business and government |
| Length: |
Text: 10 pages
Exhibits: 9 pages
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Country: |
China (People's Rep. of)
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| Pub. Year: |
2007 |
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Level of Difficulty: |
2 |
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This product type is available in the following language(s):
English
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| Related Information: |
N/A
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