Cold Storage Strategy
introduction
the SUPERMARKET
SUPERMARKET: a large self-service shop selling foods and household goods
Provision stores and grocers Supermarkets These two categories will be considered Hypermarkets
Examples of local supermarkets
NTUC FairPrice Cold Storage Shop n Save Giant Sheng Siong
an OLIGOPOLY
Oligopolies have:
A few dominant firms High barriers to entry Homogeneous/Differentiated products Mutual interdependence
analysis and evaluation
analysis and evaluation
Is the supermarket industry really an oligopoly?
NUMBER and SIZE of firms: big or small? BARRIERS to entry: high, low, or none? NATURE of products: unique, differentiated, or homogenous? Mutual INTERDEPENDENCE: are their actions influenced by others? COMPETITION: pricing, product development, or marketing?
NUMBER and SIZE of firms
A FEW DOMINANT firms
NTUC: over 225 outlets island wide
NTUC Fairprice, Xpress, Xtra, Finest
Dairy Farm International Holdings: over 87 outlets island wide
Cold Storage (Shop N Save, Jason’s Marketplace) Giant Hypermarket
SOME SMALLER firms
Sheng Siong: 21 outlets Carrefour*: 2 outlets island wide
NUMBER and SIZE of firms
These firms are classified according to their presence in Singapore (i.e. their local market share). Some examples of firms, like Carrefour, have only a few outlets in Singapore though they belong to a large international chain.
Carrefour has more than 12,200 stores in 29 worldwide
BARRIERS to entry
HIGH barriers:
High start up costs
Floor space Suppliers Storage and transportation
Strong brand names such as NTUC and Cold Storage
Difficult to attract loyal customers
Firms already in industry will have cost advantages, able to offer low prices
NATURE of products
Homogenous Differentiated Products products
NATURE of products
HOMOGENOUS products:
Most products are homogenous; the same wholesalers usually supply more than one distributor Almost all supermarkets will carry national brand
the SUPERMARKET
SUPERMARKET: a large self-service shop selling foods and household goods
Provision stores and grocers Supermarkets These two categories will be considered Hypermarkets
Examples of local supermarkets
NTUC FairPrice Cold Storage Shop n Save Giant Sheng Siong
an OLIGOPOLY
Oligopolies have:
A few dominant firms High barriers to entry Homogeneous/Differentiated products Mutual interdependence
analysis and evaluation
analysis and evaluation
Is the supermarket industry really an oligopoly?
NUMBER and SIZE of firms: big or small? BARRIERS to entry: high, low, or none? NATURE of products: unique, differentiated, or homogenous? Mutual INTERDEPENDENCE: are their actions influenced by others? COMPETITION: pricing, product development, or marketing?
NUMBER and SIZE of firms
A FEW DOMINANT firms
NTUC: over 225 outlets island wide
NTUC Fairprice, Xpress, Xtra, Finest
Dairy Farm International Holdings: over 87 outlets island wide
Cold Storage (Shop N Save, Jason’s Marketplace) Giant Hypermarket
SOME SMALLER firms
Sheng Siong: 21 outlets Carrefour*: 2 outlets island wide
NUMBER and SIZE of firms
These firms are classified according to their presence in Singapore (i.e. their local market share). Some examples of firms, like Carrefour, have only a few outlets in Singapore though they belong to a large international chain.
Carrefour has more than 12,200 stores in 29 worldwide
BARRIERS to entry
HIGH barriers:
High start up costs
Floor space Suppliers Storage and transportation
Strong brand names such as NTUC and Cold Storage
Difficult to attract loyal customers
Firms already in industry will have cost advantages, able to offer low prices
NATURE of products
Homogenous Differentiated Products products
NATURE of products
HOMOGENOUS products:
Most products are homogenous; the same wholesalers usually supply more than one distributor Almost all supermarkets will carry national brand