Explain the defense strategy adopted by the 2 supermarkets

2006-12-04 4:40 am
Explain the defense strategy adopted by the 2 supermarkets

回答 (1)

2006-12-05 1:01 am
✔ 最佳答案
The low price strategy was used to selling mostly FMCGs or supermarket products on the internet by the new comer Jimmy Lai of At-Mart (or called Apple-Mart) in the late 90's against the 2 supermarket giants in HK, however a defense strategy namely Tit-for-Tat strategy was used to retaliate and set intense entry barriers to At-Mart
(1) Face to face lowering prices rather than At-Mart's prices
(2) Pressurize(blackmail) existing suppliers not supplying goods to At-Mart, or otherwise business severance
(3) Longer opening (unit 23:00 or even 24hours) hour against At-Mart's internet selling
(4) Offer delivery service against At-Mart's offer

Tit-for-Tat Strategy is a kind of market signalling as the company is doing rather than what its rivals are doing by intense competition
Jimmy Lai suffered big loss of his big pocket money (estimated 500m HK dollars) and was finally defeated by the two giants, who although had also burnt big money due to cut throat sales in the price war. However they are public listed companies that do not get much hurt to regain their market share eventually

2006-12-04 17:03:24 補充:
Correction:unit 23:00 isUntil 23:00


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