Research On Profitability Model Of Convenience Store

Entering a new century, domestic supermarkets are facing fierce competion while international retail giants enter the market intensely. The emergence of a new type of operation, convenience store has brought about a new revolution in retail business and expand rapidly in cities.Firstly, the paper focuses on analysis of advantage, current situation and consequence of convinent stores. Profitability model of convenience store is provided by means of applying five Porter's Competitiveness Advantage models with views of variance and cost-effectiveness (scale merit). Secondly, the study makes researches on influence on expanding and profitability of convenience store with four aspects as marketing strategy, varieties of merchandise, renovation strategy on type of operation, application strategy on electronic commerce. Thirdly, this research examins how convenience store make profits through applying franchise business from the view of development enviroment, profitability model and expanding pattern. Finally, the study discusses how information technology influence convenience store from the view of electronic commerce. Some suggestions are put forward for convenience store how to allocate and integrate resources effectively, adopt network business to promote business competitiveness and profitability capacity through case study of Guoda 36524 convenience store.