Case ID: HKU615     Solution ID: 30665

GOME Electrical Appliances Holding Limited Case Solution

Abstract

GOME, established by Wong Kwongyu, had developed from just a 100-square-meter store in Beijing in 1987 to the business pioneer in electrical and home apparatus retailing in China, with 259 customary stores and 4 computerized stores by 2006. Its prosperity originated from its low-edge, high-volume system, which was supplemented by its taking a stab at administration quality and development. In 2006, GOME confronted the new test of tuangou, or gathering buy. So as to store up haggling energy to request rebates from retailers, customers with comparable needs in China united through the Internet and showed up altogether at retailers at pre-masterminded times and dates. They would put persevering weight on retailers and would press for more prominent rebates. This developing buyer conduct had spread like fierce blaze in China and retailers had distinctive responses. Some respected the weight and offered more prominent rebates, some just entertained tuangou that had been pre-organized and/or pre-enrolled, while others declined to give in and kept up an altered value approach. It was dependent upon GOME to decide how best it could manage this new wonder.


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