Shanxi JiaLi Supermarkets Competitive Advantage Study

This paper is referring to the hot topic among academe and enterprises. It has been three years since China enters into WTO on Dec.11,2004. Based on promises, Chinese retail trade should open to foreign states completely. Under the furious impacts from foreign states, how to establish and keep competitive advantages for Chinese retail trade, which has been studied thoroughly. From the angle of nature and quantity, analysis and investigation also are done on how to set up and keep competition for Shanxi JiaLi Supermarket.First, the paper starts with a general introduction on the developing status of our chain retail trades at current stage. It also studies the competitive advantage source in the traditional theory and the advantage, disadvantage, opportunity and threatening of Shanxi JiaLi Supermarket by quoting SWTO Model. It studies the difficulties that Shanxi JiaLi Supermarket is facing in the furious competition too.Then, based on above analysis and study, it provides three kinds of strategy modes for establishing retail trade and keeping competitive advantages, which are cost first mode, scale economy mode and valuable chain mode. Comparing the three modes, it confirms that Shanxi JiaLi Supermarket should adopt valuable chain optimized mode to set up and keep its own competitive advantages.The study shows that the single chain competition has been replaced by the competition of modern retail trade and the fluctuation valuable chain competition. Only get the full success from the whole valuable chains, the enterprises could obtain and keep long-term competitive advantages. This is the major point and significance of this paper.