The Research On Competitive Strategy Of Hypermarket Chains R-Mart

Retail industry in China didn’t fully develop until the reform and the policy of opening-up to the outside world, over100years later than western countries. In recent years, China has been attracting the attention of the transnational retail enterprises, because of her sustained and rapid economic development, significant improvement of people’s living standards and the huge market capacity of1,300,000,000people. At the end of2004, China’s retail market fully opened to the outside world. Carrefour, Wal-Mart, R-Mart, Auchan, Tesco and other foreign retailers have entered China’s retail market in succession, the rapid expansion caused a great impact on China’s retail market. The domestic retail enterprises are facing unprecedented pressure of competition, and it also creates a good opportunity for the large hypermarket chain to develop. At present, the world retail giants have occupied the dominant position of China’s hypermarket industry. China’s hypermarket is at the critical stage of rapid development. Thus the study on the competitive strategy of hypermarket chains, has profound significance for the development of China’s retail industry.I carried out the study with R-Mart Company as the research object. I applied the theory of retail competition strategy and analyzed the external forces, using Potter’s five-force model of industry competition structure.I analyzed the internal condition of R-Mart with the help of the value chain analysis, the core competence analysis and critical success factors analysis method. I compared her with two international retail giants such as Carrefour and Wal-Mart, and the best supermarket at home such as Lianhua Supermarket to find out the advantages and disadvantages of each other.Finally, with the help of the SWOT analysis method, I sum up the strengths as well as weaknesses, opportunities, threats and other factors of R-Mart Company at the present stage of development. I analyzed the combination strategy, and provided four kinds of alternative strategies for R-Mart. Combining with the practice of R-Mart, I established the main strategy of expansion current, and chose the cost leadership and differentiating two kinds of strategies as the main competitive strategy. At the same time, it expounds the concrete implementation of the strategy including the reset of the organization, the development of human resources, the construction of organizational culture, the application of information technology, cost control and differentiation strategies.