Catering industry, retail industry
Most companies in this industry have very narrow competitive advantages. The basic method of establishing a competitive advantage is to make low-cost leaders through scale advantage.
understand the life cycle of the company. The characteristics of successful catering companies: a. the concept of establishing success; b, successful replication is the key; c, the old chain stores must remain fresh, but do not need to completely remodel them.
Focus on the capital turnover cycle (the sooner the better).
Calculation: Capital turnover cycle
= Inventory turnover days+accounts receivable turnover days-accounts payable turnover days
=365/Inventory Turnover Rate+365/Accounts Receivable Turnover Rate-365/Accounts Payable Turnover Rate
=365/(Product Sales Expenses/Inventory/inventory)+365/(sales revenue/accounts receivable)-365/(commodity sales expenses/payables)
The characteristics of successful retailers: a. efforts to keep the store clean and fresh is the key to leaving the first impression on consumers; b, pay attention to the traffic conditions of the store; c, successful retailers have a positive corporate culture.
Low barriers to entry are not conducive to building a competitive advantage. The industry cycle is closely related to the economy, and the management of stores is crucial. The industry's low yields are cyclical and not worthy of long-term investment (even Wal-Mart McDonald's). Pay attention to off-balance sheet debt and look for opportunities to buy shares in a well-known retail company during the industry downturn.