The Competitive Strategy Analysis Of China's Local Retailing Enterprises

In recent years,the retailing industry ,both the industry size and the growth rate, has been developing rapidly and become an important industry to boost our domestic demand . In face of the huge market, foreign retailing enterprises are all busy increasing their investments. How to deal with the powerful challenges of foreign retailing enterprises is a topic of universal concern for our domestic local retailing firms.Most of the existing studies are from the micro-level, using the theory of business management. So, this article will discuss the competitive strategy of domestic retailing enterprises from the macro perspective , using relevant theories of industrial organization. Through the analysis of local retailing enterprises'weak competitiveness, this article will bring forward three kinds of competitive strategy based on a large number of data analysis and case studies, they are: the scale expanding strategy, the differentiation strategy and the strong brand strategy. Our domestic enterprises can take the scale expanding strategy if they are strong themselves or the market saturation is low. And they can take the differentiation strategy if the market saturation is higher or their strength is limited. At the same time, they must always implement the strong brand strategy in course of taking these two competing strategies.