"wild Goose Pattern" Under The Gome And Suning Competitive Strategy - Gome, Suning

Auction as the dust settles the fifth triple, China

Home Appliances Chain of "asymmetric competition" features become more evident. The merger of the Paradise, hosting the medium and large electrical appliances, the States United States in the acquisition and development of self-expanding two-way road of getting faster and faster this year, triple the country the United States to become the largest shareholder, the dominant position more clearly, from the "brand value" , "business income", "number of stores," the three key indicators of retail home appliances, has been far throw off the

Suning , A leader in home appliance chain in China. This "asymmetric competition" feature, forming a typical Chinese home appliance chain, "Goose pattern": States United States first, Suning second, five-star (Best Buy) third.

GOME three brand: Litigation in or coordinated operations

2006 acquisition of Yongle year state the United States after the competition pattern of Chinese home appliance chain, profound changes took place. GOME slightly better than the previous Suning, Suning far better than the next country the U.S.. In fact, the best indicator of the status of the two chains are itinerant vendor "price approach" to the country the United States, the supplier's supply price and the rebate is given to be generous?? This is consistent with the market rules: the interests of game, has always been sympathy for the weak .

Today, large and medium countries have entered the U.S. system, Touyan and two further widening the gap between geese. The new country the United States to countries the United States, Yongle, Dazhong brand formed by the three horns relationship, known as the "tripod." Nationally, States United States ports of dominant position; in the economic center Shanghai, Yongle in the dominant position; in the capital Beijing, Dazhong is the first brand. This is undoubtedly a very clever layout. Today, Suning's absolute dominance is only one place in Nanjing, from a strategic point of view on the apparent wind out of the country under the United States.

Therefore, brand researchers layout of the States United States brands compared to P & G shampoo strategy. In the shampoo market, Rejoice, Pantene, Head & Shoulders, Vidal Sassoon four brands, and firmly to control China's shampoo market, other brands of survival is very small.

Gome, Yongle, Dazhong three brands exist, internal and can increase their own competitiveness, maintaining corporate morale; outside, you can implement the brand interaction, the formation of brand encirclement, siege and effective competition in the brand. And linkage promotion, marketing resources can be greatly saved. It is learned that the market in Zhengzhou, China the United States, Wing-lok, often adopt a "play with" strategy, synergy between marketing, the new state's share of the United States in Zhengzhou, 80%, leaving very limited room for competitors.

Network size: the lifeblood of chain

Store network size is the lifeblood of all chains, but also the basis of competition, as is the store chain business links, not to be regarded as the network size store chain it. Large electrical retail chain network advantages manifested in four aspects: first, consumers like, because the network the greater the consumer's shopping more convenient, more save time. Coca-Cola to the city network is within one kilometer of the requirements to be able to buy products is the truth. Second, manufacturers like the bigger the network the more accurate grasp of the needs, factory orders more accurately, they no longer need to blindly production inventory. Third, the community like, as more manufacturers are working closely with the largest chain of networks, when combined, electrical manufacturing industry had a wide range of inventory will be eliminated and efficiency in the use of funds will be raised. Fourth, investors, like investors chain nature of the investment company behind the channel of this network, the network if the chain by consumers, manufacturers, like the community level to improve, investors are more willing to invest in such a chain enterprise, the wise investor will invest in a market that is the largest network, because the network is the largest network of the strongest anti-risk ability.

Wal-Mart is already the world's largest chain, but also in the rapidly expanding their network. Because they understand that there is no network of the chain in terms of scale will not be competitive.

The reason is the same as in China, China's electric chain to become a world-class chain to expand the network size, and this expansion must also be fast. I see that the U.S. is such a country in line with international trends in road getting faster and faster, and created many new expansion model means dazzling.

by: gaga

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