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An Insight into the Growth of Department Stores in Hangzhou.doc

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An Insight into the Growth of Department Stores in Hangzhou

An Insight into the Growth of Department Stores in Hangzhou 　　【Abstract】This assignment will critically examine the competitive strategies of four selected department stores in Hangzhou and the reasons why the choice of them depends on different customer values. It will also highlight the capabilities that companies used to realize their strategies. 中国论文网 /8/view-7250299.htm 　　【Key words】Competitive strategies； Department stores； Marketing position 　　The success of a company is determined to a large extent by efficient approaches to positioning. According to Porter （1980）， there are three generic strategies known as cost leadership， differentiation and focus. In this article， strategies of Hangzhou Tower Shopping Centre and Yintai Shopping Centre are defined as differentiation and focus， while the position of Hangzhou Department Store （Baida in short） is low cost and differentiation and that of Fengqi Road Small Commodity Market low cost and broad. 　　Hangzhou is one of the most developed cities in China， where people have a high purchase power. However， wealthy people used to shop in other cities such as Shanghai， Guangzhou as opposed to Hangzhou because there were no goods meeting their needs. Seizing this opportunity， Hangzhou Tower employed the strategy of differentiation and focus， importing a large amount of brand goods such as LV， Burberry， and Escada. Hangzhou Tower， located in the most prosperous area of Hangzhou City， attracts customers who are price-insensitive and quality-conscious. 　　Following the trend， Yintai Shopping Centre has broken the concept of traditional department stores and become a new one integrating shopping， eating and entertainment. It focused on the medium and high quality products but failed to compete with Hangzhou Department Store and Hangzhou Tower. After the failure in 1999， Yintai adjusted its position， transforming itself from product divisions to consumer segments. It began to focus on young people aged above 18 and families