Description
SWOT ANALYSIS OF CHINA RESOURCE ENTERPRISE

China Resource Enterprise

Parent Company

China Resource National corporation

Category

Conglomerate

Sector

Investment holding

Tagline/ Slogan

Better Life Together

Strong Backend and resource procurement allowing to afford USP competitive price STP

Segment

Retail, beer, food and beverage

Domestic consumers of household and perishable products, farmers, restraunts, event management organizations, travelers, consumers of beer and beverages, Health conscious people consuming purified Target Group water

Positioning

True market leader in many segments SWOT Analysis

1. Employs more than 200,000 people operating in Mainland China and Hong Kong 2. Operates with more than 4400 retail stores in China 3. Flexible model of operations with both self-operated and franchise models 4. Largest Brewing company in China with production capacity of approximately18,000,000 kiloliters of beer 5. Market leadership better equips the company to effectively participate in the Chinese market 6. Inorganic expansion to further enhance the market position 7. Integrated business model – with integrated supply chain for food Strength and beverages

1. Lower operating margins comparing to industry competitors 2. Geographic concentration (More than 90% of revenue from Weakness Mainland China) is a concern

1. Growth in Chinese retail market 2. Increasing disposable income and cultural shift towards alcoholic beverages in Asia Opportunity 3.Expansion opportunities in Asia Pacific region

1. Rising minimum wages 2. Intense competition in Chinese beer market Threats 3. Unpredictable government regulation- especially in China Competition

1. Carrefour S.A. 2. Wal-Mart Stores, Inc. Competitors 3. Wumart Stores, Inc.



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