2. ⢠Started in early 1999 with Groceries and Electronic
products businesses
⢠Target- Market worth HK$55 billion per year
⢠Online purchase and delivery
⢠Direct competition with entrenched brick & mortar
retailer stores - ParkâN Shop and Wellcome.
Introduction
3. Strengths
Weaknesses
⢠Saved on retail store setup and
maintenance cost.
⢠Promotion through ownerâs
other well established
newspaper business
⢠Deep pockets
⢠Enjoyed good brand recall
⢠First mover advantage
⢠Virtual credit cards scheme
increased customer base
⢠Convenience offered
⢠Widespread reach(95% area
coverage)
⢠Lack of cooperation from local
distributors.
⢠Unreliable quality of imported
goods
⢠Traditional buying culture
⢠24X7 retail store in all
neighbourhoods.
⢠Small order size making
delivery unprofitable
⢠Low internet penetration
⢠Low efficiency due to
distributed warehouses
⢠Inabilities to lower prices of
groceries due to contracts
SWOT Analysis
4. Opportunities
Threats
⢠Ability to cater to tech-savvy &
busy customer segment
⢠Cost benefits derived from nonrequirement of retail stores can
be passed on to the endcustomers
⢠Scope to expand product
portfolios
⢠Future tie-ups with the
established brands
⢠Horizon wise expansion of the
premier product
⢠High entry barriers to the
market
⢠Stiff Market competition from
established player.
⢠Replication of the model was
easy
⢠Deep pocketed competitors
SWOT AnalysisâŚâŚ
(contd)
7. ⢠The mode of ordering and delivery for both Amazon.com and
AdMART is same, but the market to which they cater was
different.
⢠Amazon.com charged for shipping whereas AdMART had free
shipping.
⢠Product quality was more relevant in case of AdMART as
compared to Amazon.com
⢠Amazon.com offered a greater choice of products vis-à -vis its
competitors as compared to AdMART
⢠Amazon.com established extensive collaborations with its
suppliers which ADMART was lacking
Amazon.com & ADMART