Sheng Siong Supermarket: Building and Sustaining Competitive Advantage
(9 pages of text)
Sheng Siong was the third-largest supermarket chain in Singapore. Its chief executive officer co-founded it with his two brothers in 1985. Sheng Siong’s business model was well suited to cater to the price-sensitive and more traditional customer segment in Singapore, with a dominant presence in suburban areas called “heartlands.” It also had a unique corporate philosophy, which was influenced by the personal values of its founding family. However, the market became increasingly saturated, competitors were aggressive and costs were rising. The key question was whether Sheng Siong’s original competitive advantage was sustainable and how it could grow.
This case is well suited for teaching internal firm analysis, and, in particular, the concept of sustainable competitive advantage. It also touches upon sources and erosion of competitive advantage, values-based organizations, diversification and family business in Asia.
Singapore, Large, 2014
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