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04-07-2011, 01:10 AM
Looking at Sheng Shiong, it does have its competitive advantages.
Not exactly copy-proof but probably sufficient to fend off new entrants
and differentiate itself from the other chains.(at least for some time.)
1. Location and labor. One of its strategies is to minimize fixed costs, they started out in the most ulu locations and
this holds true for a lot of their locations.
2. Product differentiation, they do offer products that other chains do not. I.e. Live seafood.
Dairy farm's chain probably has a lot more in common with NTUC rather than with Sheng Siong,
though the 3 compete for the same pie.
3. This is an evergreen industry(though somewhat limited growth), there will be this amount of shopping dollars allocated for groceries. This will translate into an X amount of market size. This market will always exist and should be able to weather downturns quite well.
Not exactly copy-proof but probably sufficient to fend off new entrants
and differentiate itself from the other chains.(at least for some time.)
1. Location and labor. One of its strategies is to minimize fixed costs, they started out in the most ulu locations and
this holds true for a lot of their locations.
2. Product differentiation, they do offer products that other chains do not. I.e. Live seafood.
Dairy farm's chain probably has a lot more in common with NTUC rather than with Sheng Siong,
though the 3 compete for the same pie.
3. This is an evergreen industry(though somewhat limited growth), there will be this amount of shopping dollars allocated for groceries. This will translate into an X amount of market size. This market will always exist and should be able to weather downturns quite well.