Gome

In: Business and Management

Submitted By keithlei01
Words 276
Pages 2
By 2000, Gome had become a large home appliance retail chain :
- An annual turnover of RMB 2.6 billion
- 21 retails outlets spreading across Beijing, Tianjin, Tianjin, Shanghai, Chengdu and
Chongqing
- Over 50% market share of Tianjin color television market
Top three retailers in the Shanghai Market
Gome initially only imported home applications, mainly Japanese color television . E.g. Toshiba, Panasonic, Hitachi and Sony. In 1996, Gome had shifted its focus from imported brands to domestically produced, joint-venture brands. ?
On June of 2000, to avoid the series of the Color Television Price War incidents,, nice core members of the color television industry- Konka, TCL, Hisense, Skyworth, Prima, Rowa, LG, Panda and Westlake launched the “Chinese Color Television Enterprise Summit”. This is the first price alliance.
Price control by alliance would choke off Gome’s business and their operation strategy of Gome: focus on retail only, thin margins for high volumes



Low prices strategy sustainability
In mid June 2000, nine color television manufacturers had indicated that production for domestic sales would be reduced by 15-20% and the pricing trend for color televisions might be significantly affected.

Over reliance on domestic color television suppliers
Gome’s major revenue was driven from the sale of domestic color television sector, and thus it has adverse impact on the business model and marketing strategy of Gome.

Branding and positioning
Gome needed to maintain the branding image of being the defender of consumer welfare


Limited distribution channel and negotiation power
The number of stores for Gome as well as the scale of its overall sales network was rather limited (Actual scope limited to 3 regions of Beijing, Tianjin and Shanghai)




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SWOT Analysis…...

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... those who need it. Thirdly, as for resonance, I consider that the product may be not so meaningful for someone. It is just a new product and want to attract new customer but nothing special. It’s just an update product. Fourthly, the noticeable sharp quality is convenience. It’s very easy for customer to bring with them for some works and entertainment. Fifthly, as for likability, I think just like the slogan says, go anywhere, do anything. It is very attractive for those who want a convenient and functional laptop. Nowadays, Dell is promoting its products through retailers like Best Buy, Staples, Wal-Mart, GOME, and Carrefour. 6.Evaluate performance using marketing metrics Finally, as a total evaluation, I have to say that Dell is really a good company focusing on good and quick delivery. It has the unique distribution model to support various needs from millions of customers and has been the largest computer supplier. But the disadvantage is that it attaches too much importance to work use and somehow ignore the home use that may affect its future revenue. What’s more, its unique distribution also means it has no solutions if its current model gets into trouble. As time goes by, its price advantage is becoming smaller. The brand loyalty may control the influence. But what Dell can do if its sustainable advantage disappears. That must be a challenge for Dell in the future....

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