Analysis On Competition Strategy Of Regional Commercial Retail Company

In recent years, our country has enjoyed a notable increase in comprehensive national strength and economic status, yet, because of the problem of economic system, the whole economic growth rate slows down gradually. Therefore, our country’s economy should transform to the consumption-oriented mode as soon as possible. The government enlarged the financial expenditure and export and improve socialist economic system as well to strength the consumption confidence of the people and stimulate domestic demand. The change of macro environment takes more chances to the retail companies. As one of the top retail companies in Chongqing, M Retail Company focuses on store, supermarket and electrical appliances chain business. Its business network bases on Chongqing and radiates to the west. But M company is a traditional retail company and in the industry which is in the increasingly fierce competition. Thus formulating competition strategy in line with the company’s characteristics and the future development is particularly important.This thesis chose Chongqing M Retail Company as the research object, and analyzed the opportunities and challenges it facing in the environment that the retail industry was developing rapidly. M company gets the opportunity to develop. But more and more domestic and foreign retail companies enter China market to compete for the market share, such as Wal-mart and Carrefour.The popularity of the Internet development has produced a number of emerging technology companies to join the fight for market share, such as Alibaba, JD and Vipshop. M company is in the context where other retail companies at home and abroad joined the local competition and E-business companies encroached on the local market through the Internet. Above all, the local monopoly was broken and some other external conditions lead to. fiercer competition. The thesis analyzed the competition strategy, which was developed to make M company adapting to the changes in the internal and external environment. At last the thesis put forward the specific corresponding measures of strategy enforcement.This paper expounded the knowledge related to the strategic management theory, especially the strategic management theory based on the dynamic environment. It provided theoretical basis for analyzing and developing the competition strategy of M company, then using PEST analysis method to analyze the company’s external environment, combining within its own internal environment and finally using the SWOT method to analyze the advantage and disadvantage of current competition, and the opportunities and threats M company faced and the strategy choice matrix to select the company’s strategic posture. It also analyzed feasibility and practicability of the three basic competitive strategies-cost leadership strategy, differentiation strategy and focus strategy respectively to propose the competition strategy and the security system, which will ensure the implementation of the strategy.Through the case of M company’s competition strategy study, the thesis aimed to help enterprises perform better in market competition, so as to achieve M company’s long-term development. The process of doing research, analyses of the retail industry and the determination method for competition strategy have certain reference significance to industry researchers and potential entrants.