WUMART STORESResources and capabilities
Henrik Engervall ([email protected])Erik Ingemansson ([email protected])
Karl Nielsen ([email protected])Teresia Schullström ([email protected])
Principal resources and capabilities that form the basis of Wumart’s competitive advantage:
1. Strategic relations• Extensive network with prime locations thanks to SOE’s• Future expansion potential thanks to good relations
2. The earliest among domestic retailers to realize the importance of information technology in the development of a retail chain
3. Geographical advantage / Physical uniqueness
4. Widely recognized brand image of reliability, quality and value for money.
5. Strong corporate culture characterized by respect, a strong sense of responsibility and co-operation, innovation and learning, and great attention to details.
6. Zhang Wenzhong
yes no yes yes yes yes
yes no yes yes yes yes
yes yes yes yes yes no
yes no yes yes yes yes
yes yes* yes yes yes yes
It depreciates slowly
It is hard to copy
Your company controls its value
It can not be easily substituted
It is better than competitorsʼ similar resources
Pass or fail?
1. Rela
tions
2. IT
3. Geo
graph
ical a
dvan
tage
4. Bran
d, qu
ality
and v
alue
5. Corp
orate
cultu
re
6. Zha
ng W
enzh
ong
Regionally
Wumart’s competitively distict resources (regionally):
1. Strategic relations• Extensive network with prime locations thanks to SOE’s• Future expansion potential thanks to good relations
2. The earliest among domestic retailers to realize the importance of information technology in the development of a retail chain
3.Geographical advantage / Physical uniqueness
4.Widely recognized brand image of reliability, quality and value for money.
5.Strong corporate culture characterized by respect, a strong sense of responsibility and co-operation, innovation and learning, and great attention to details.
6. Zhang Wenzhong
- no - yes yes yes
- no - yes yes yes
- yes - yes yes no
- yes - yes yes yes
- no - no yes? yes
It depreciates slowly
It is hard to copy
Your company controls its value
It can not be easily substituted
It is better than competitorsʼ similar resources
Pass or fail?
1. Rela
tions
2. IT
3. Geo
graph
ical a
dvan
tage
4. Bran
d, qu
ality
and v
alue
5. Corp
orate
cultu
re
6. Zha
ng W
enzh
ong
Domestically
Wumart’s competitively distict resources (domestically):
1. Strategic relations• Extensive network with prime locations thanks to SOE’s• Future expansion potential thanks to good relations
2. The earliest among domestic retailers to realize the importance of information technology in the development of a retail chain
3. Geographical advantage / Physical uniqueness
4. Widely recognized brand image of reliability, quality and value for money.
5.Strong corporate culture characterized by respect, a strong sense of responsibility and co-operation, innovation and learning, and great attention to details.
6. Zhang Wenzhong
- no - yes yes yes
- no - yes yes yes
- yes - yes yes no
- yes - yes yes yes
- no - no yes? no
It depreciates slowly
It is hard to copy
Your company controls its value
It can not be easily substituted
It is better than competitorsʼ similar resources
Pass or fail?
1. Rela
tions
2. IT
3. Geo
graph
ical a
dvan
tage
4. Bran
d, qu
ality
and v
alue
5. Corp
orate
cultu
re
6. Zha
ng W
enzh
ong
International
yes no - yes yes yes
yes no - yes yes yes
yes yes - yes yes no
yes no - yes yes yes
yes yes* - yes yes yes
*
It depreciates slowly
It is hard to copy
Your company controls its value
It can not be easily substituted
It is better than competitorsʼ similar resources
Pass or fail?
1. Rela
tions
2. IT
3. Geo
graph
ical a
dvan
tage
4. Bran
d, qu
ality
and v
alue
5. Corp
orate
cultu
re
6. Zha
ng W
enzh
ong
Other Industry
Easier to expand in other industries regionally than internationally as Wumart since most competitive advantages are local.
Suggested improvements for future success:
• How to sustain regional performance?➡ Guard brand values, political relations, corporate culture and IT➡ Upgrade expansion pace➡ Upgrade inventory/product offer
• How to expand domestically?➡ Upgrade relations outside region➡ Branding➡ Invest in prime locations
Thank you for listening!
Reference list
1. Wumart stores: Chinas response to Wal-Mart
2. Collis, D.J. & Montgomery, C., “Competing on Resources”, HBR, 2008
3. Regnér, P. “Strategy-as-practice and Dynamic Capabilities: Steps towards a Dynamic View of Strategy”, Human Relations, 2008