Competitive advantage in food retail strategy and supply chain - an analysis of the UK and Chinese markets

Intensifying global competition and more demanding customers places a requirement on the food retail industry to be even more efficient in seeking, exploiting and sustaining competitive advantage. Membership of the World Trade Organisation (WTO) and the subsequent developments in the Chinese economy make the country very attractive to global retail organisations. The study presented in this paper explores and analyses the primary sources of difference that account for divergent developments between the United Kingdom (UK) and Chinese food retailers. Through the use of literature, market data and case studies, the impact of industry-level and organisation-level factors on competitive advantage in both markets are analysed. Key differences are identified with respect to government policies, shopping attitudes and supply chain configuration among others. The study also identifies crucial operational initiatives China´s domestic food retailers need to embrace if they are to compete successfully with the new global entrants.