Analysis Of The Promotion Of Core Competence Of Retail Company S

There are a number of small-and medium-sized retail enterprises across thecountry. They are playing an important role in the local economic development.However, as the competition in today’s domestic retail industry becomes daily fiercer,they feel more and more lost about their future long-term development strategy. Toexpand outward? The development patterns of LREs (LREs) have been flourishing inother places. LREs lacking cost and differentiation advantages cannot find effectiveways to expand outward. To seek diversification? To the LREs in Henan Province,limited by the lack of resources and the loss of opportunities to expand, it means morerisks to expand chain retailing scale or to enter into irrelevant industries at this stage.With big retail enterprises setting up branches all over the country, the small-andmedium-sized retail enterprises have felt more pressure from the market. They are notable to expand outward or to keep their own turfs. How to determine the futuredevelopment path? How to establish their core competence? These are all questionsthat they need to answer.Based on the characteristics of core competence of China’s LREs, this article usesthe core competence analysis of the retail industry to study the local retail industry incompetition. It also analyses the pattern of competition of LREs and finds out theirposition in the industry by looking at the features of their competition. Retail CompanyS in this province is taken as an example. The current market situation and internalorganization of the company are analyzed. Demand changing trends and competitionrisks of the market are assessed in line with the future development trend of the retailindustry. And main factors that affect the promotion of core competence of Company Sare identified. From the angle of balance point of risks and profits of the futuredevelopment of Company S, the article further draws out the future developmentstrategy for local retail industry, i.e., to improve the core competence the Company S,it should diversify the forms of its sale and establish its retail terminals downward to tap rural markets so as to expand its scale and reduce operation cost. It should alsoprovide regionally unique service and make it the linkage between regional serviceinstitutions and end customers. It should develop self-owned brands to promote itscomprehensive value to its customers. Through the abovementioned measures, LREsmay improve their core competence.In the present internal and external environment, the opportunity for LREs tosimply go after bigger scale has gone. Only by optimizing the chain of supply andretail formats diversification can LREs establish differentiation advantages in a certainindustry or in a certain region. In this respect, the Henan Shuanghui Group andXuchang PDL Group have set good examples for Company S.