Case Study

Que 1: Analyze the competitive environment of the supermarket industry in Hong Kong and the competitive response of the two leading supermarket chains. Does the competition of the two leading chains’ parent companies in multiple market segments have an impact on the competitive environment?

Que 2: Analyze the strategic positions of PARKnSHOP and Wellcome in the market, and in particular, their bargaining power vis-a-vis suppliers and consumers. What are their keys to sustaining leadership in the market?

Que 3: What strategies did PARKnSHOP and Wellcome use to overcome the challenges posed by their competitors? Are there legal risks in pursuing such strategies with the Competition Ordinance in place? What is the impact on consumers when the supermarkets try to defend their market share?

Que 4: Should the international conglomerate enter the retail grocery market in Hong Kong? If so, what could it do to increase the chance of a successful and profitable entry?