Sheng Siong Group Case Study

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1. Introduction Sheng Siong Group was established in 1985 by the Lim brothers namely Lim Hock Eng, Lim Hock Leng and Lim Hock Chee. It is known as the third largest supermarket chain operator in Singapore, after NTUC Fairprice and Diary Farm (Investment Avenue, 2015). 33 outlets are situated around the heartlands of Singapore to provide "wet" and "dry" grocery shopping options such as vegetables, meat and daily necessities products. To facilitate the operations, Sheng Siong Group owns the extensive distribution network, facilities for food processing and warehousing. They built the headquarter and distribution centre at Mandai Link in 2011 and achieved HACCP certification for food processing in 2013 (Sheng Siong, 2015). Sheng Siong Group's…show more content…
The new distribution centre is larger than the old facility at 3000 Marsiling Road. With bigger land size, it provides larger capacity for bulk purchasing which helps to improve the sales mix (Sheng Siong, 2015). In 2008, Sheng Siong Group developed and launched house brands products such as canned food, sugar, ice cream and so on. Consumers can save up to 15% from the purchase of house brands products due to low produce cost (Asiaone news, 2008). In the long term, Sheng Siong Group managed to build a stable reputation of providing quality goods at low price with good services. This allows the organization to gain competitive…show more content…
The purpose of Sheng Siong's expansion plan is to make itself more accessible to consumers and gain more shares in the market. Making use of the opportunities arising from economic and social condition, it will help to reduce the cost price which provides competitive advantage for Sheng Siong to thrive in its business. With the resources given and opportunities provided, Sheng Siong is able to triumph over the competitive disadvantage and

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