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Business Foundation Suning Appliance

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Suning Appliance Co., Ltd is a popular retailer of China and deals in home electrical & electronics shops. Under the brand name of Suning, the company supplies consumer appliances like TV, digital equipment, kitchen appliances, computers, air conditions and appliances related to the communication.  The company has its own website that helps the company to do online business.  The company is an ISO certified company and has ten flagship retail stores of the electronics products across the various states of China.

Suning has gained popularity in China as one of the important retailers dealing with consumer appliances. The most important activities offered by the Suning are different activities such as developing, selling & integration of the computer software (, 2016). The company is also very popular for services related the internet services, investment in industries, domestic products and personal training. The company has also a website to do e-commerce. The website of the company showcases the different types of information of the company related to the products, prices and about the stores of the company (Marketline, 2017).

SWOT analysis

Suning is a retailer. It engages itself in the operation of home electronics appliances stores.  The strong market importance of the company creates the brand image. The company offers a wide range of the products to the customers. The online retailing of the company and the strategic initiations of the company help it to make business growth.

The company has greater chances to expand its business internationally. For the successful operation of the business internationally the company requires making a SWOT analysis. SWOT analysis will help the company to examine the internal and external environment for the growth of the company.


SWOT Analysis of Suning


1.       The company has better distribution channels. It has numbers of distribution centers in different locations

2.       Suning is an established company. It has a strong presence in the market of China.

3.       The company offers a wide range of product and services.


1.       The performance of the company depends upon the geographical situation of the country.  The environmental, social, political & economic factors affect the growth of the company

2.       The diversified competitors bring huge competitions that the company cannot compensate (Brass, 2012).

3.       The company faces difficulties for the decrease in the operating income. The declining in the operating cost affects the fiscal & operational condition.


1.       The company has a website that promotes e-commerce. The company has strong inventory management systems. The e-commerce business process helps the customers to order the products and equipment.

2.         Suning has a plan to invest JPY13 billion in the country in order to expand the operations and to exploit the best opportunities that are found in the market of China (MarketLine Industry Profile, 2015).

3.       The company has potentials to expand its presence outside the country. It can have new establishments in the foreign countries.

4.       The Loyal customer base will help the company to gain more revenue if it starts to do its business in the global market for its growth in the Tibet market.


1.       The unorganised retailers in the country pose threat to the company by supplying counterfeit appliances.  This reduces the market share and revenue of the company.

2.       The domestic stores, supermarkets and independent stores in the Tier-1 cities of China bring stiff competition for the company.

3.       The skilled manpower is a threat to a company. There is the shortage of manpower and due to this, the company will face difficult for any expansion in the global market.

Description of the market

The assignment will study the importance of the electronics market in Canada.  Canada is a greater potential market for the electronic and photographic equipment. The market will offer opportunities for the company to do retail business.


Size of the market

The total revenue of the Canadian electronics market of the consumer is $6.0bn in the year 2014. The CARC, the compound annual rate of change is 3.3 percentage in between the years 2010-2014. In 2014, the study states that the most lucrative segment of the consumer's electronics market is the audio & visual segment. There has been greater demand for tablets and Smartphone (Marketline, 2017). 

Figure 1:  Canada consumer electronics market value forecast

(Marketline Industry profile, 2015)

Figure 2:  Canada consumer electronics market geography segment

(Marketline Industry profile, 2015)

Leaders of the market

The degree of the competitors has been more in the Canadian consumer electronic retail market.  Apple, Amazon and eBay are some of the competitors in the Canada market. The companies like Samsung and Apple have started the retail business in the country. Thus the company will face huge competitors in the market.

Concentration of the market

There are many competitors in the market. The big companies like Samsung and Apple have started retail outlets in the Canadian market. Thus the retailers will face difficulty in the market. The online retailers like Amazon, Best buy, eBay etc are the most competitors in the market. But Suning will get much benefit in the market for its loyal customer base programme. This will be very effective for the company to gain the competitive advantage in the market (Marketline, 2017).

Distribution and the growth of the industry

Suning has strong distribution channels. The company is famous for its nationwide distribution channel in China. It has regional distribution centre, city distribution centre and support distribution system (Company profile,MarketLine, 2015). The company will utilise the policy that has been implemented in China in Canada. The retail business is accepted by the consumers of Canada (Marketline, 2017).  The retail outlet will contribute to the growth of a company in the retail market. The company will perform if it gets experienced employees and the customer service should be offered effectively.


SWOT Table analysis of Suning

The SWOT analysis of Suning shows the perspective for the company to expand retail business in Canada.


The Strong distribution channel is a very important factor for the development of the company in Canada. The company has its website and it can satisfy the customers demand through e-commerce.  The distribution channels of the company will help to gain the confidence of the customers (, 2017). In the Canadian market, there is a greater need for the customers’ service. The company is popular for its customer's service (Marketline Industry profile, 2015). Thus it will help the company to do better service.


Suning has less experience in expanding business in the global markets. The competitors are very large in numbers in the different countries. The company will face difficulties to win the target market in Canada. The operational inefficiency is another factor of the company to struggle in Canada (, 2013).


The electronics appliances market in Canada is potential. The consumers expect tablets, Smartphone, telecommunication equipment. Thus the retail business will be very perspective in the market. Suning will gain the advantage in the market (Marketline, 2017).


The threats for the company are the competitors. The retail business organisations like Amazon, eBay, Best Buy etc are popular in the country. They are the established companies in Canada. Suning will compete with these companies to gain the competitive advantage in the market (, 2016). Counterfeit products will also create trouble for the company to flourish in the Canadian market.


Target market

The consumer electronics retail market in Canada has different kinds of a market segment. There are huge numbers of small buyers, end users and the consumers (, 2017).  Most of the retailers procure their stock from the manufacturers directly.  There is always a supply from the manufacturers to the retailers. The market of the electronics is commoditized. One product developed in the market gives an opportunity to other competitors to produce the similar kind of product. The manufacturers give the license for their intellectual property in order to gain financial benefits (Kichuk, 2010). 

The ability of the consumers in the market is high. The customers are more interest for communication appliances, TV, Smartphone and tablets. Thus the market is very favourable for the company (Anderson, 2013).

Description of the new product

The retail business will be successful in the Canada market after the company will launch a new product in the market. The company will focus on a new product that is not available in the market of Canada.

The company will retail its new product on communication sector. The semiconductors for the manufacturing of the telecommunication products will be launched in the market. The semiconductor will be used in the computer, development of the software and the electronic products of the consumers. There will be technology for the optical storage for audio & video. For the data storage on the computer, it will be useful.  The price of the product will be reasonable and the company will use cost leadership strategy for the sale of the products. There will be discounts and offers as per the requirements. There will inventory management system of the company. The company will also sell its products through e-commerce. The website will help the company to sell its products in the market. For the promotion of the products, the company will organise its own website. The website will feature all the information related to the products, price and specification of the product.


Customer Value proposition

The customer value for the retailing of the products of the communication sector will help the customers to gain the advantage. The electronics product will remain available in the market. The customers will procure the new products from the market. The semiconductor will be sued for the high-quality products and the customers will gain advantage from it (Geva, 2013).

The e-commerce business will help the company to gain commercial benefits. The customers can procure the new products directly ordering from the website of the company. The customers will save time and cost for the order they will make through the website of the company (Iverson, 2012).

The customers will get more products from the different companies. They will find the appropriate and well products. They will procure the products if they find it suitable.

Justification of the choice of new product using at least one strategy

The new product will be procured by the customers when they feel that the new products are multiple uses. The new product will help in developing the capabilities of the electronics products. The communication appliances will be very useful and this will give the customers a new experience.  The customers will get new products with new features that will give the new experience (Saleh, 2011). The Canadian market will find the availability of the new products which are very developed and beneficial for the customers.

Strategy of loyal customer base

The new product of the company will be successful in the Canadian market when the company will offer new features and benefits to the customers. The services to the customers will help the company to gain many advantages. The customers of the electronics appliances prefer for the customer's service centre or the support of the company when they have problems with the appliances. Thus this will develop the confidence of the customers to procure the products and they will be very loyal to the products of the company (Chang, et al., 2009).


Launching of new product in the market is always challenging. It is very important for the company to make an analysis of the market before launching any product in the market. This will help the company to justify the necessity of expanding the business in the global market.



Anderson, 2013. IT and HRM. 6 ed. New York: Prentice HALL.

Brass, 2012. Information Technology impacts on Human Resource Management. 4 ed. s.l.:Harlow Press., 2013. 5 Canadian consumer trends to shape the future of retail - Business .. [Online]  Available at: [Accessed 05 04 2017].

Chang, Y. F., Chen, C. & Zhou, H., 2009. Smartphone for mobile commerce. Computer Standards and Interfaces, Volume 31, pp. 740-747.

Company profile,MarketLine, 2015. Suning Appliance Co,, Ltd. London: MarketLine., 2016. Electronics products market to touch $75 bn by 2017:. [Online]  Available at: › Industry › Cons. Products › Electronics [Accessed 07 04 2017]., 2017. Consumer Electronics in Canada - Euromonitor. [Online]  Available at: [Accessed 05 04 2017].

Geva, B., 2013. The Law of Electronic Funds Transfers. Lexis Nexis.

Iverson, 2012. Importanance of Information Technology Impacts fir Human Resource management. 6 ed. s.l.:Thousand Oaks.

Kichuk, D., 2010. Electronic collection growth: an academic library case study. Collction Building, Volume 29, pp. 55-64.

Marketline Industry profile, 2015. Cosnumer Electronics i n canada, London: MarketLIne.

MarketLine Industry Profile, 2015. Global Consumer Electronics. London: MarketLine.

Marketline, 2017. Suning Appliance Co., Ltd, London: Marketline.

Saleh, Z., 2011. Improving security of online banking using RFID. Academy of Banking Studies Journal, 10(2), pp. -8., 2017. Electronic Components Market Trends - Global Industry Analysts, Inc.. [Online]  Available at: [Accessed 05 04 2017]., 2016. Five trends that will change consumer behaviour in 2016 - The Globe. [Online]  Available at: › Report on Business › Small Business › Growth [Accessed 05 04 2017].


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