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!!!!!!!!!!!! .