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The Business Model of HEMA

HEMA Business Model

HEMA Retailer is one of the most successful retail chains in Europe. Based in Netherlands, the company has different branches in Belgium, UK, Spain, Germany, Luxemburg and France. HEMA Retailer is known for being customer friendly with a good attitude towards their customers. They have real loyal fans in the countries they serve it. They also enjoy a good market share. The HEMA Retailer brand is very distinguished among the competitors setting them apart and way better. HEMA has its own assortment that tends to surprise their customers from time to time in regard of their offers of products and the daily prizes and discounts. HEMA Retailer products are convenient, good quality, practical and very attractive.

HEMA Business Model:

The business model of HEMA is the centralized distribution model. The centralized distribution business model means the shipment of the goods from a supplier towards a central location through full load quantity in most cases. Besides, HEMA uses the store fulfillment model regarding the online distribution of grocery. The store fulfillment business model means using the retailer stores as if they are miniature centers for distribution. 

Opportunities of HEMA:

1- Use of Brand’s Name:

HEMA Retailer is also required to invest more in the field of e-business. Simply, most of successful Retailers now have huge investments in the e-business field because it has good opportunities. Most of customers now have daily access to internet while being armed with credit cards. Customers love to see the products in hands but when you offer the product online with good viewing angles, they definitely prefer to buy it online to save time and efforts. Hence, there are few advantages, opportunities and threats in the e-business for HEM and other retail chains to be considered.

2- Accessibility:

E-business permits full access, 24/7 for al consumer base. It helps you as a consumer to get informed about new offers and products through following up with system, and your customers can place orders with forward data at whatever it is day or night. It is also applicable to create an entryway to all customers and employees to access your data that you only give access to these data. In this regard, this facilitate the operations between the customers and the employees at every touch points

3- Saving Money:

e-business is intended to save more funds and money spent on the wages. It also creates chances for the management to save time and training as well as personnel. It also creates chances for better and less crowded retails on the ground. Shopping is easy at your fingertips.

4- Business Expansion:

When you set up together a customer friendly e-business interface, your organization is on a level playing field with whatever other organization on the planet. Your Internet business can become as large as you can since HEMA Retailer is investing correctly in the right time and right place. Huge revenues now come through online business. The world is moving very fast towards online shopping and customer experience programs are now taught to business owners in order to raise their awareness about the use of online shopping channels and social media hubs.

5- Customer Engagement:

As interpersonal organizations super-size, brands will need to discover approaches to rise above the noise and keep a progressing dialog with their customers. The plethora of informal organizations will not just confuse the consumer, additionally the e-Retailer. Brands will have to screen online networking stages and define which ones fit their message best, as a ton of them with radically different philosophies seem to thrive equally in ubiquity.

Threats of HEMA:

1- Security:

HEMA Retailer is a big company and for sure, they will be thinking about emerging into e-business. This step requires loading huge volume of data on the web, which make it insecure and vulnerable to hackers if not kept safe. While your information is substantially more useful to you when it is accessible through your e-business entryway, it is likewise exposed to hackers. A hacker cannot get into a locked file organizer to locate your confidential business data, yet in the event that you have an e-business segment that offers real-time evaluating, then your expenses are exposed. An Internet business additionally exposes your servers to viruses and hackers.

2- Possibility of Failure:

Every business have a minimum amount of risk taking. However, the e-business promises to be very attractive. On the other hand, failure might be also existent. This means that HEMA Retailer has to be alert for any fluctuation in their online business. Fund raising for e-business has to be studied carefully by the company’s marketers in order to avoid any possible gaps in selling and production as well as marketing and distributing.

Porter’s Five Forces of HEMA:

The Porter's Five Forces instrument is a straightforward however intense device for comprehension where force lies in a business circumstance. This is helpful, in light of the fact that it helps you comprehend both the quality of your current aggressive position, and the quality of a position you are considering. With a reasonable comprehension of where force lies, you can exploit a circumstance of quality, enhance a circumstance of shortcoming, and abstain from making incorrectly strides. This makes it an essential piece of your arranging tool compartment. Notwithstanding it can be exceptionally enlightening when used to comprehend the equalization of force in different circumstances.

HEMA Retailer is one of the leading retail chains in Europe. Serving in Europe, it has its own headquarter in the Netherlands. It also serves in UK, Belgium, Germany, France and Luxemburg. HEMA is a customer obsessed and always taking care of the customer experience whenever they can at every touch point. HEMA enjoys a good market share in the above-mentioned markets. It helps the chain to expand within the boundaries of Europe. According to the five Force Factors of Porter’s, HEMA is standing on a solid ground within the markets it serves in. This can be even witnessed by discussing each factor simultaneously.

HEMA Competitive Rivalry:

HEMA Retailer is working in markets where it has giants in the same field. For example, in its origin country, it has Lekkerland AG & Co. KG as well as X5 Retail Group N.V. In France, it has Carrefour and other wholesale and hypermarkets. Those competitors are serving in the same goods and offer very competitive prices especially Carrefour. It is a discount retail, which is known for the highest quality given and the best customer service. HEMA Retailer enjoys a very loyal fan base in the Netherlands where they won the mist indispensable brand of the country.

Threat of New Entry:

The first obstacle that will definitely face any entry-level discount retail or shopping retail in the countries that HEMA Retailer exists in will be the loyal fans of HEMA. Simply HEMA Retailer has a great hits and love between the people of the Netherlands because of the serious discounts and the way they are treated within the retail shops by the customer service representatives. It will take any newborn Retailer 2 to 3 years to be able to make a brand name while keeping in mind the fierce competition. The barriers for the entry are seamlessly witnessed. It is an open market for all but it takes a lot to be an admired brand.

Supplier Power of HEMA:

HEMA Retailer enjoys a variety of supply chain from many places around the world but it is centralized in China where almost everything can be made with low cost. HEMA is very dependent on the Chinese suppliers in offering the best goods with extremely high quality that matches their targeted shoppers. However, few top-notch items are made in the Netherlands. It is easy for HEMA to open new factories in China because of the low wages and existence of all materials.

Buyer Power of HEMA:

HEMA Retailer enjoys a massive numbers of customers on daily basis. For example, the online shop enjoys traffic of 4.5 million men and women per week. Customers check the promotions and offers before they buy or even before visiting the retails themselves. They can substitute HEMA for others because other rivals can offer somehow lower prices but HEMA is unique for their support, customer service and top-notch products. HEMA offers items that is not available in other Retailers.

HEMA Retailer Threat of Substitution:

Of course, HEMA Retailer’s products can be replaced by any entry-level shopping Retailer if they could imitate of copycat from HEMA. However, it can be very hard in the beginning to offer the same unless the new Retailers are willing to raise funds and spend money to eliminate HEMA from dominating the market in the Netherlands or other European countries.

The Business Model of HEMA

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