Bim Core Competencies

Although Bim trains its new employees about how to contribute to the company’s cost-oriented approach such as turning lights off when they leave, Bim gets many complaints about insufficient knowledge of its employees on products such as their ingredients, locations in the store. This insufficiency and weakness may be linked to the low training of employees about the company’s product portfolio. The other and probably the most important weakness of Bim is the association of Bim brand name as poor quality. This consideration may be linked to Bim’s strategy of offering lowest-priced products and many private labels in its product mix. The concept of private label is still unknown and most customers are skeptical about their quality due to their
It is so clear that Bim is very cautious about its costs, and cost-oriented approach is central to Bim’s success. According to Bim’s cost-oriented approach, complexity is the key driver of higher costs that is why Bim’s philosophy appreciates simplicity and modesty both in its operations and organizational structure. Bim also implements its cost-oriented approach through some principles in its operations to keep costs to a minimum and to reflect those gains as price discounts to customers.
Store’s operating costs and strategic locations have huge importance in the implementation of the cost-oriented approach. Bim rents their stores instead of purchasing them directly to have low operating cost base and avoid debt financing. Stores are generally small and strategically located on secondary streets in crowded residential areas. This strategy allows Bim to attract large customer base without advertising and minimize real estate lease costs since rents on main streets are substantially high. In addition, Bim locates its stores in crowded neighborhoods, in which low-middle disposable income classes live, but these neighborhoods are not far away from rich-districts such as Etiler, Nisantasi where Bim does not have any store. In 2017, 598 new stores were opened in Turkey with the growth rate of 9.7%. As the end of 2017, Bim has 6,765 stores in total, 6,118 of which are in Turkey, and 647 in
The main principle of the Bim is about offering “Everyday Low Price”. This principle may be considered as offering the deepest promotion and lowest price for the products in its product-mix every day, so there is no need for further promotion. Instead of using conventional advertisement channels such as media, billboards like its competitors do, Bim focuses on using alternative advertisement channels such as word of mouth and sometimes flyers to offer the lowest price to customers by minimizing its costs. All savings generated through effective cost management are reflected in products’ prices. Thus, customers are just paying for the product, not for its advertisement and any other related