The Competitive Strategy Research Of Department Store Business In Zhenhua Group

The department store industry has become an important domestic economic demand forces, since the reform and opening up30years ago. However, because of some impacts such as gradual slowdown in economic growth, the rapid development of network electricity supplier, the impact of international business and industry to accelerate expansion of internal factors, Chinese retailing began to face some problems like high cost, high competition, low returns, difficult expansion, resource monopolies in these years. Some scholars, business leaders have begun to explore the transformation of the department store channel in the new situation, and more ideas on retail industry come out. Therefore, it’s quite useful to discuss the competitive strategy of department store industry.This paper is studying Zhenhua Department Store Group Co., Ltd., which was founded in1994by collective enterprises from restructuring. The Group is involved in fine department stores, discount supermarkets, home appliances, real estate, hotels, restaurants and many other businesses, particularly in the department store industry as a pillar industry. At the beginning in2006, the department store business of Zhenhua began rapid expansion of the market by mergers, acquisitions, self-development and other means. In the year2012, the retailing business start to get into a trough, a marked decline in performance. In the company, some difficulties are met such as pre-merger integration, leadership succession issue, etc. On the other side, the company is facing more competition from both home and abroad. Because of lacking of sense of competition, the company is facing a tough situation.This paper will study the competition strategy of Zhenhua Group department store business by using some research methods such as interviews, literature studies, comparative research methods, with some experience in the work. First of all, some system analyzing tools are used like PEST analysis,"five forces" model, the strategic group analysis tools, to analyze the macro-environment, business structure and competitors for the company. Then, analyzing the competence of company by means of investigating its competitive strategy and value chain, then reflex the result on the strategic layout map. After comparing some revolution theory, rebuilding the competence strategy by adjusting strategic layout map according to company’s situation at last.According to the study, Zhenhua department store business should consider taking differentiation focus strategy to avoid competition with their peers convergence. Enhancing service differentiation by extension service. Developing county markets in Shandong Peninsula, with geographic focus. Using theme merchandise layout to achieve category focus. Using sophisticated platform to carry out the theme electricity supplier. By decomposing the enterprise value chain, Zhenhua department needs to make adjustments in terms of information technology, services, technology, human resources, marketing activities in order to achieve the competitive strategy. In informatization construction procedure, single product management, data mining and information sharing successful strategies constitute the basic level. Human Resources and skills development services support each other. Marketing activities are inclined to take advantage of the emerging micro-marketing tools and value judgments rational emotional marketing, which is different from the previous method. In order to deal with some of resistance in the revolution, the paper proposes to use the tipping point leadership method to overcome difficulties.This paper will provide a feasible idea for the strategic revolution for Zhanhua Group by researching competence strategic of company. This paper also analyze the long-standing department store industry and has a certain significance for the department-store business...