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Case Analysis of Wumart
Group 7b- Xiqing Deng [email protected] Ender Yunus [email protected] Jonatan Schwamberg [email protected]
Wumart stores - introduction
The resource-based view of strategy
Resources vs capabilities
Wumarts competitive advantage: inimitability
Wumarts competitive advantage: durability
Wumarts competitive advantage: appropriability
substitutability
competitive superiority
Supply and social Networks in Home Market
Wumarts competitive advantage: sustainability
Good relationship withGovernment : Inimitable
Wumarts expansion strategy
Wumarts expansion strategy: geographical
growth
Wumarts expansion strategy: competitive advantage in China
Wumarts expansion strategy: diversified growth
Wumart in the future: China
Analysis:• Sustainable position, at least for a long time• The relationship with the government is a strong advantage against imitation• However, there is a lot of uncertainty with the sustainability of other competitive advantages, especially out of its home market region
Wumart in the future: international
Analysis:• Enter other geographical markets could be difficult
• The mature business model of large retail companies with international ambition like Wal-Mart may have occupied the market in most countries
• Some countries in which local enterprises take the main market share, like Sweden. • Since the retail industry is indispensable one, it has been developed fully by every region. Without ample funds and local resources (supply chain, social connection, etc.), Wumart would face large challenge when competing with local retailers.
Reference
• Collis Montgomery: ”Competing on Resources”
• ALI FARHOOMAND, ZHIGANG TAO: ”Wumart stores: China´s response to Wal-Mart”
• Wumart’s Official Website: www.wumart.com