Business Planning Analysis-07

1. Business Planning Analysis-07 Name: Lee Xiantao Branches: Business School , Binhai University Tel: 15253221531 E-mail: Lixiantao365126@126.com

2. Chinese supermarkets Contents: (1) The definition of China supermarket (2) The rising of supermarket in China (3) Chinese consumption habits (4) Good teachers of Chinese supermarkets (Wal-Mart vs. Carrefour ) (5) General situation of Chinese supermarket (6) How can we get rid of the trouble?

3. Wal-Mart vs. Carrefour Weigh pros and cons Advantages: Wal-Mart (EOS) ① Advanced information technology system ☆ EDI---Electronic Data Interchange ☆ ECR---Efficiency Customer Response ☆ QR---Quick Response ☆ POS---Point of Sale

4. Wal-Mart vs. Carrefour Weigh pros and cons Advantages: Wal-Mart (EOS) Retailers’ SCM Synchronization and integration Supplier Logistic and distribution Customers’ demand Information system based on Internet/Intranet

5. Wal-Mart vs. Carrefour Weigh pros and cons Advantages: ② Supply chain(Horizontal extension) Vertical extension---Acquisition & Merger e.g. Carrefour acquired Baolongcang (a local supermarket) in 2010. POS terminal Designing Purchasing Producing Logistics Order processing Wholesalers

6. Wal-Mart vs. Carrefour Weigh pros and cons Advantages: Wal-Mart bought 35% stocks of Bounteous Company Ltd. (BCL) in 2007. ③Scale economy capital-oriented + branches + Information technology + Brand effect Trust-Mart （好又多）

7. Wal-Mart vs. Carrefour Weigh pros and cons Disadvantages: ①Localization is in low level cultural transplantation; the number of middle-managers ; legal system;

8. Wal-Mart vs. Carrefour Weigh pros and cons Disadvantages: ②Adaptability independent expansion (relying on inner capital and brand effect); large scale causes to lower flexibility and operation model is too simple to cope with.

9. Wal-Mart vs. Carrefour Weigh pros and cons Disadvantages: ③ Low price takes the place of quality control fake/ overdue commodity/the obligation of compensation ④ Rigid operation system---(entry cost/ additional charge/priority charge)

10. General Situation of Chinese Supermarkets General situation ①Small scaleleads to hard position in negotiating with suppliers. (eg. reducing bargaining power/ the more, the better) ② The positioning is not clear. (eg. CVS; GMS; Big mall; exclusive shopping/ Who is our potential customer?) desolate MYKAL

11. General Situation of Chinese Supermarket ③Just for quantity, not quality. (Good reputation usually comes from “beautiful things, better prices”.) Hualian and lianhua always prefer to establish more and more branches and hope to beat other competitors relying on “the wolf pack tactics”. ④ Short of capital ,advanced technology and excellent staff. (Staff is the master of capital and technology/ How can we make integration among them. )

13. How can we get rid of the trouble? ②Make clear segmentation, positioning and target. (market segmentation/product positioning/ targeting market) Price is the key that effects the final purchasing-decision of most customers. You must know your product is suitable for who ? ③ Keep a balance between quality and quantity (large scale is a coin with two sides. The bigger is only a choice and good quality and reputation are the same as the scale. ) Chinese supermarkets must realize “the most suitable is the best”.

14. How can we get rid of the trouble? ④ Improve the information technology and staff management (application and update information system, especially to the logistics and inventory/ dynamic staff management/ cultivate own brand and spirits) ⑤Take A & M strategy to strengthen itself. (like Carrefour and Wal-Mart acquired domestic supermarkets)

15. On-line shopping On-line shopping market and its growth rate(CNY---100 million)

16. On-line shopping On-line shopping marketshare

17. On-line shopping On-line shopping product

18. On-line shopping Money paid each time

19. On-line shopping Evaluation for on-line shopping (1)

20. On-line shopping Evaluation for on-line shopping (2)