Virtual Supermarket Essay

4358 Words18 Pages
Executive summary Business goals As global market leader, Wal-Mart is confronting with cruel challenges from the fierce competitions, protectionism and operational reformations. With the Virtual Supermarket, Wal-Mart‘s mission is to expand its Chinese business scale and dominate the marketplaces; and the best location starts with shanghai subway systems. Business descriptions Virtual supermarket was first introduced by Tesco HomePlus in Korea in 2011. The simple processes of virtual shopping: to scan the QR or bar codes with the smartphone, then orders process with Wal-Mart IT system and then have the goods home delivered. Market The annual potential number of virtual customers is 120 million, and major customer group are students, white-collars and commuters. Competition Main Competitions coming from * Traditional tycoons: RT-Mart, Carrefour, China Resource Vanguard * On-line shops: TaoBao; and * Virtual store: unlimited yihaodian However, Wal-Mart retains high brand awareness and customer base, within its main competitive advantages: robust logistic capacity, effective IT and Database system, strong sourcing power and low-price strategy. Risk and opportunity The principal risks come from social recognition, intensive industry competitions and logistic issues. However, there is great opportunity to expand Chinese virtual supermarket. Management team The team is guide by corporate manager, consisting of R&D , IT, Marketing and Logistic department. Financial In financial aspects, annual growth on sales increased by 17% and profits increased by 25% annual; Costs are major contributed on rent, advertisements, construction and maintaining, logistic fees and IT services. Virtual Supermarket Feasibility Study Description of products and services Virtual supermarket is rising and innovative market in Chinese retailer industry.
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