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Swot Analysis Of Runxin Mart

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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

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