The Competitive Strategy Of Metro China

As the leader of Cash@Carry around the world, Metro has been insisted on this format during the past 10 years in China. Facing the challenge of traditional wholesalers and hypermarkets, Metro China has never made expected profit till now. There has been great argument among the management upon the attitude towards retail market. Some stores accept retail customers, which increase the sales, meanwhile cause great troubles as well.This thesis first introduces the basic information of Metro China, analyzes the designed strategy and the realized strategy, which put forward the necessary of re-designing the strategy and three related problems: by-product position, attitude towards retail market and specific way of strategy adjustment. By means of segment analysis, retail market segments are divided, whose scope, latent capacity and consumer buying behavior are analyzed. Meanwhile, competition analysis explains the opportunities and threats the enterprise is facing. New strategies are raised based on the upper analysis, which are evaluated by value chain analysis between different segment markets.The conclusion is that Metro China should develop the middle class segment and give up the lower-middle class segment market, because the middle class segment matches the business market much better than the lower-middle class segment so that the existent value chain could serve both segments better.To fulfill the new strategy, the thesis provides a series of adjustment plan based on value chain activities.