The Research Of Competition Strategy Of Lotus Hypermarket In China

Since the first supermarket in the world appeared in 1930, this industry has developed for over 70 years. But development of this industry especially hypermarket in China has just started. Due to Chine's entry to WTO, Chinese retail market has been completely opened. Thus supermarket industry will have a rapid development, and the competition will become fiercer. How to select its strategy for competition and development based on their inner situation and outside environment is a crucial problem in front of the retail business in China.As a new retail form, hypermarket is very popular among customers due to low prices, permit of touching the goods and convenient shopping. But. it calls for. huge capitals, advanced management and running ideas. With reference to Chinese present retail market, Lotus entered Chinese retail market as Hypermarket. It has run 69 chain stores till January, 2006. Lotus has made remarkable achievements with its advanced running ideas, huge investment and resource superiority of CP Group (Charoen Pokphand Group). With its rapid expansion, Lotus met many difficulty and found more problems in its development. This essay analyzes the market strategy and situations of Lotus in China by using some basic theories and analysis methods of competition strategy. Firstly the outside and inside situations of the corporation are analyzed with its competitors respectively. Second the background and content of its market competition strategy in China are analyzed. Then the Chinese present market competition strategy and situations are analyzed and assessed. At last, the author's suggestions are put forward: study and re-orientate the business; strengthen the construction of business brand; improve business relations; have more talent storage and training; increase the proportion of goods of its own brands and at the same time guarantee the quality of all goods; pursue a rational speed of expansion and equip well accordingly; attach importance not only to business culture but to management and running features, localize management of each chain store in particular, orientate the business according to local characteristics.Through analysis and study of market competition strategy and situation of Lotus in China, this essay gives some suggestions to polish its market competition strategy. It also provides reference to other retail business invested by foreign capitals on how to establish Chinese market competition strategy. Meanwhile, it offers chances for Chinese chain store retail corporations to learn advanced management, service, and technology abroad.