bus489 Business Strategy

While its current business model continues to reap rewards from its current operations, opportunities to diverse and expand its business operations should not be neglected. Sheng Siong should not be resting on its laurels but to continue exploring avenues to increase profits and minimise economicrisks. In order to scale revenues to the next level of profits, we recommend Sheng Siong Group to:(a)Incorporate partnership with Singapore Petroleum Corporation to run convenience stores at petrolstations.This partnership allows bothcompanies to tap on each other’s strengths to provide their customers better deals through Sheng Siong’s established procurement network and the convenient locations of SPC stations.(b)Initiate joint venture with Food Junction to supply fresh produce tohawkers. Thishelps to cushion the high operating cost for hawkers,secure a stable source of revenue for its grocery retail business. The centralised source of procurement also helps to migrate the risk of poor food safety and quality standards.(c)Introducea new concept of a premium Sheng Siong supermarket. This aims toserve a new range of premium products targeting consumers would be willing to pay more for higher quality and premium food products.(d)Implement exclusive membership program to retain brandloyalty.This will further strengthen its cooperation with Food Junction and SPC, boosting sales and revenue, building up brand loyalty for all threeorganisations.