History & development

• Established in 1973

• A member of the A.S Watson Group (ASW) , a wholly-owned subsidiary of Limited

• had established two Appropriation brand “PARKNSHOP” & “BEST BUY” in1995 Development

• 260 outlets in and , almost 50 are Superstores and Mega stores, with about 9,000 employees

• 10 in and

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. , 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 • 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 , 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 ( 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!!!!!!!!!!!!