History & development
• Established in 1973
• A member of the A.S Watson Group (ASW) , a wholly-owned subsidiary of Hutchison Whampoa Limited
• had established two Appropriation brand “PARKNSHOP” & “BEST BUY” in1995 Development
• 260 outlets in Hong Kong and Macau, almost 50 are Superstores and Mega stores, with about 9,000 employees
• 10 in Guangzhou and Shenzhen
Form of business ownership
• Limited Company PARK n SHOP is a wholly-owned MORE!! subsidiary of Hutchison Whampoa Limited Features of limited company
• Independent legal entity • Limited liability • Lasting continuity
Park your car and shopping!!?????
Park & Shop ---> Park n Shop
INFORMATION!!!!!!!!!! ↑wholesalers
INFORMATION!!!!!!!!!!
All from Yahoo ! Knowledge Product & services There are 10 main categories. “What to produce/sell?” IT is allocated by market forces!! The market price~~
Services
• Withdrawal of money : EPS • Online shopping • Delivery services • Telephone Factors of production
• “How to produce?” • Factor prices To guide the producers in their choices of production methods
Target customers
Public, Especially housewives INFORMATION!!!!!!!!!! Demand of the products
• Elastic Demand There are many close substitutes,
e.g. Wellcome , Yukee , CRC shop
It’s elastic!! PARK n SHOP P
D
Q 0 As WELLCOME is its close substitute, then……
If Wellcome↓ the price of its product , the quantity demanded of Wellcome’s product would↑ , however the demand of PARK n SHOP would ↓ P WELLCOME P PARK n SHOP
P1 P2 D P1 D1
D2
0 Q Q1 Q2 0 Q Q2 Q1 Supply of the products
Related Companies: • S. Watson Group • Watsons water • Mr. Juicy • Sunkist • Crystal Spring
• They can let PARKnSHOP enjoys stable supply at a lower price Supply of its products Some products are with elastic supply while some products are with inelastic supply!! Inelastic supply: Fruits, vegetables, etc. P
S
Inelastic , because of the nature of the product.
0 Q Elastic supply: Soft drinks , canned food, etc P
S
Elastic because it has stable suppliers , in another words, it hold reserve production capacity. 0 Q Their ways to increase its profit USUALLY NON-PRICE COMPRTITION!
• Propaganda : the best, cheapest
• Sell some products by buy one get one free
• Coupon to exchange presents
• Provide discounts to customers on Wednesday
• 2 times the different !!!!!
Greatest competitor !! WELLCOME Wellcome & PARK n SHOP
• They are substitute.
• The market is dominated by them ,they set the price for smaller firms to follow.
• They are interdependent.
• There are also non- price competition (for instance , Wellcome ↓the price or giving out gift ,lucky draw etc. PARK n SHOP will promptly follow it) =Oligopoly !!!!!
• They have bargaining power too !!! Features
Oligopoly No . of sellers Several dominants Nature of goods Mainly heterogeneous Entry Difficult Information Imperfect Influence in the market Price-searchers Non-price competition Very common Market structure ←The market structure of PARKnSHOP
Market
Perfect Imperfect competition competition
Monopolistic Monopoly Oligopoly competition =
INFORMATION!!!!!!!!!! How to increase PARK n SHOP’s profits? Suggestions to increase profits S-Strength • 260 branch stores in North and South China, Hong Kong and Macau.
W-Weakness • Some people still not willing to go PARKnSHOP
O-Opportunities • Open more Mega store • Take Jusco as an example
T-Threat • The competition with Wellcome is fierce Our suggestions • Create more creative advertisements in order to attract more customers
• Invite pop star to sell their products
• Employ more price watchers
• Make Charity shows
• Have Product diversification
Sources From
• Yahoo ! Knowledge • PARK n SHOP . com • WELLCOME . Com • SY Econ • Material (Japan Sozai) • PARK n SHOP ‘ s staff
Members: Yeung Wing Tsz* (43) Kwok Ka Yi (20) Lam Ka Wai (21) Wong Po Yan (40) Yau Ngan Ling (42)
THE END!!
THANK YOU FOR YOUR ATTENTION!!!!!!!!!!!!