4.3.1 Competitors Overview Most competitors are located in the city centre, which have similar or larger size but are at least 3 km away and target at different customers groups (See Figure 4.3.1). They are more attracted for local people and those who have high incomes with high living standard, but Runxin Mart is targeting only on people living around the supermarket, who are mainly from other cities and running private-owned businesses in this small city. Because of features of those customers, Runxin Mart tries to keep their products ' prices as low as possible to remain competitive. Moreover, it does not only cooperate with those standard brands such as P&G, Karft and Unilever, but also some small brands which can help lower the price …show more content…
4) Market – Except five supermarkets, there is a market selling fruit, vegetables and meat just located at opposite side of Runxin Mart. It makes challenges to fresh food only. In order to compete with it, Runxin improves the quality of fresh food but charges similar price. Although price is a very important factor, people nowadays are seeking for higher living standard at low costs. In addition, Ruixin offers better shopping experience. Customers feel more secured to shop in a supermarket rather than a market as food quality can be better controlled and after-sales service will also be better. 4.3.3 SWOT Analysis Strengths 1. Self-purchase for some products – Compared with competitors whose products are mainly from distributors, Runxin Mart also explore the way of self-purchasing from the whole market where sometimes low prices are available for some products. It helps Runxin achieve economic of scales so as to save prime costs as lower purchasing price brings about higher profit even Runxin charges the same price as its competitors. 2. Self-brand expansion – Self-brand products are normally more profitable than those well-known brands. For instance, a package of well-known brand tissue can only contribute with approximately 16% profit while a package of self-brand tissue can contribute more than 40% profit to the company. Runxin has realized the large profit from it and currently is expanding its self-brand products into more categories. 3. Larger
conducted by Economic Times. While Titan is ranked at Number 4, Sonata increase their rank to
Sunway group is property-construction corporations. It is one of biggest and leading corporation in Malaysia with 12 business in different sectors across 50 location in worldwide. It also have approximately 13,000 employees and was established in 1974. Sunway Group involved in various types of industries to make their corporation to go global. There are types of 12 types of sectors such as, construction, hospitality, property, education, commercial, quarrying, retail, leisure, trading and manufacturing, building materials, healthcare and real estate investment trust (REIT). Sunway Group have won over 200 awards nationally and internationally and was listed in FTSE4 Good Bursa Malaysia Index. Sunway’s C.A.R.E. (Community, Aid,
Twin City was incorporated in 1921. It was formed by combining the towns of Summit and
Offer the same or similar products for much cheaper, due to their private in house label that people have grown extremely fond of (Lutz, 2015)
For the past 5 years, Kroger is making profits every year; however, compared to Publix and Safeway’s 5-year-average figures, Kroger has the lowest profit ratios based on the gross profit margin, operating profit margin and net profit margin. Gross profit margin figures are relatively stable for the past 5 years while operating profit margin shows improvements: 1.4% in 2010 and 2011 while the figure has jumped to 2.8% to 2.9% during the year, 2012 to 2014. The net profit margin shows relatively stable making 1.4% to 1.6% range except for the year, 2011 of 0.7% which is more than half less than the other yearsFor the past 5 years, Kroger is making profits every year; however, compared to Publix and Safeway’s 5-year-average figures, Kroger has
Food Town’s vision is to expand the supermarket concept by opening store and becoming the best low price and high standard supermarket in town. To achieve the vision of this organization; the management team will successfully execute the following strategy: strategically expand the customer base, differentiate itself from other groceries stores by offering unique products and services, committed to excellence in customer service, and strive to improve high efficiency levels of operations. The way Food Town attracts consumers is by adverting his lower
A monopolistic competitive market has several indicators such as large, but established numbers of manufacturers, clients who have their own preferences for consumable products and retail outlets with branded products trying to outdo their competitors (Scott). Moreover, the market is free, meaning that it is relatively easy to enter or leave the market. It is important to note that in a monopolistic market new good production is not a solution for replacing other existing products on sale, but rather act as a close reliable substitute
The strengths in the SWOT represents the core characteristics that have the potential to provide competitive advantage and build a niche as a new entrant. Sherwood Enterprise has a tremendous potential to excel in introducing a new, one of kind product, that is patent protected and is affordable and aligned with the growing trends of the industry.
The Wal-Mart spirit is legendary, including things like the cheer ("Gimme a 'W ' "), however that suits, perhaps, the American mindset better than, for instance, the European.
Walmart is the largest retail chain in the world wide and has most of its business resident in the United States. The shares size and corresponding volumes that it needs to purchase to stock its stores gives it the bargaining power to negotiate lower wholesale prices. This translates into being able to deliver low prices to its customers. The company has been in business for several years and has become a trusted brand and a household name. The size of the company has also allowed it to be able to “cope with compressed prices and margins,” and have stores throughout the country as brick and mortar stores and now online. Walmart had a profit margin of 2.35% in its most recent quarter.
Amazon is able to generally take on the lowest cost position in a market with the highest means of convenience. This gives them a major competitive advantage because they
The status of South Africa will be raised globally as the entire world will be watching the event
Almarai Company is a leading integrated consumer food company in the MENA region, the Saudi Arabia Company has a strong revenue record with varies products on offer. However, the company faces main threats in terms of the location of its operations and their weak liquidity position is a risk to the company compared with competitors. On the other hand, the company is weary of future epidemics that can hit the diary industry and shifting raw martial prices that can have serious effect on their financial revenues. Nevertheless, the rising demand of healthy and low fat diary products in the UK is an opportunity that can help Almarai lead the market with key healthy products.
Cost leadership: McDonald’s has always focused on a cost leadership strategy which gives a competitive advantage to the company and makes it difficult to compete with. This is a greatest strength to enter new markets and supporting new opportunities (Scilly, 2015) (Gregory, 2015). In current business opportunity, McDonald’s can use its strategy to be lowest cost service provider in universities. Other than that Dollar to Dollar Menu provides great affordability to its customers.
Lowering cost is a major objective of the brick and motor stores. By lowering cost, a company can improve its profit margin and pass the advantages onto the customer in the form of lower prices. Competitors like Walmart have been successful using its strategy to bring in new customers. Walmart is able to achieve everyday low prices for its customers, due to its large scale suppliers and a fast product turnover rate. Kroger and companies like it who compete on price sources products from low priced domestic suppliers, allowing them to sell products at a lower cost and make gains off of slim margins at a larger volume (Chron).