Situational Analysis of Retail Industry in Hong Kong

A situational analysis of the
retail industry in Hong Kong
from macro and micro
perspective

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Situational analysis of the retail industry in Hong Kong by using SWOT and Porters five
forces analysis........................................................................................................................1
The media landscape of retail industry in context to competitors and market.......................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Situation analysis refers to the determine the impact of macro and micro environment on the
operation and productivity of the company (Chan, Shen and Cai, 2018). To determine the
concept of situation analysis the selected organisation is Sogo Department store which is located
in Honk Kong as well as it was established in 1830 By Ihei Sogo in order to provide various
items such as beauty, grocery, household, food and many more to the people under one store.
This project covers the competitive and market analysis in order to address the issues as well as
analyses of the media landscape of selected market.
MAIN BODY
Situational analysis of the retail industry in Hong Kong by using SWOT and Porters five forces
analysis
In Hong Kong, the retail industry is referring to the sector which provide basic and
necessary items to the people to meet their daily needs. The Sogo department store is one of the
retail company which operate their business to earn profit and customer base (Dermawati, 2018).
The management of the company conduct situation analysis in order to determine the market
trends and competitors’ strategy which create problems in their business. For Micro analysis they
use SWOT as well as for Macro analysis they use Porters Five Forces.
SWOT analysis in context to Sogo department store are as follows-
Strengths
Positive market and brand value
Brand recognition as it is one of the oldest
department store in Hong Kong and known for
quality (no counterfeit products)
Identity of being a Hong Kong name. Its cloest
competitors Marks and Spencer (UK)Sogo
(Japanese), Aeon (Japanese)
Owns most of its own property in a city where
rental prices is the highest in the world
Weaknesses
Outdated in its supply chain management
Lack of a grocery department (its competitors,
sogo, Aeon and Marks and Spencer all has a
successful one.
Average age of employees is 50
No real digital marketing presence (Hardy,
2021)
1