Ginza Group Co., Ltd. Retail Business Competitive Strategy

With rapid development of Chinese economy, modern retailing trade is involving much in fields of business, marketing, production and financing, and becoming the fastest growing section. The super mart, as a new type of business mode in China, is accepted by the city customers for its full variety of daily consumables, that the consumers can complete the buying list in one stop. In east area of China, the super marts are replacing the department stores, and becoming the main retailing trading mode. For the prospect of super mart and the potential consumables market in China, the investment both domestic and abroad is involving in this section, such as Wal Mart, Carriford. Since the end of 2004 when China government has execute the promise to cancel limits to foreign direct investment, the development of super mart has entering new stage, where the competition is extending into more developed area of medium cities and towns of counties.Silver Plaza Group Co., Ltd, whose shares are held by Shandong Commercial Group Corporation, engages in commodities retailing and wholesale. The company has five branches now, located respectively in Jinan, Taian, Dongying, Linyi and Qingzhou, with total business area of 140,000 m~2. In 2005 the turnover of the Group was 158 million RMB Yuan. The Silver Plaza Group Co., Ltd is a fast developing chain store, with its marketing area mainly in Shandong Province, it applies the composite mode of "department store + super mart". Presently Silver Plaza Group Co., Ltd. is facing with the severe challenge from competitors such as Wal Mart, Carriford and RT Mart. In this dissertation it is noted that the main competitors have more advantages in company size, shop network, MIS than Silver Plaza, and have strong competence in cost, while the Silver Plaza has advantage in local region and culture, it also has the special advantage of department store which the competitors don't have. So, the differential competitive strategy should be applied for Silver Plaza should, in order to develop its advantage and avoid shortage, to fulfill the target of "double times growth in two three-year' in turnover. The differential competitive strategy has four phase: the first is to apply the...