Unveiling the Secrets Behind 99 Speedmart’s Successful Business Strategy

99 Speedmart is a household name in Malaysia for its unrivaled success in the retail industry. With over 1,000 stores and counting, the company has achieved a feat that other small and medium-sized enterprises (SMEs) can only dream of. It’s no secret that 99 Speedmart’s business strategy is responsible for its success. In this article, we uncover the underlying secrets behind 99 Speedmart’s flourishing business strategy.

Cost Leadership Strategy

99 Speedmart was founded by Mr. Lee Thiam Wah in 1987 with a focus on selling products at affordable prices. This pricing strategy was unique to the industry where other competitors focused on high margins. 99 Speedmart’s initial cost leadership strategy was an instant hit with customers. Despite the low margins, the company was able to keep costs low and increase sales by offering a wide range of daily necessities with a focus on locally sourced products.

Strong Supply Chain Management

99 Speedmart’s emphasis on a strong supply chain has helped it to maintain a competitive advantage in the market. The company has devised a system wherein suppliers have to deliver the products directly to its stores, thereby cutting out intermediaries, and reducing costs. 99 Speedmart sources products directly from local suppliers, thereby supporting the national economy and reducing its carbon footprint.

Expansion Strategy

99 Speedmart’s growth strategy has been aggressive, with the company opening an average of 200 stores annually. This fast expansion is attributed to the company’s focus on opening stores only in areas where there is high footfall traffic. By ignoring regions where there is no demand, the company has been able to reduce overheads, thereby increasing profits.

Streamlined Operations

The company has devised a streamlined operation system with a focus on efficiency and productivity. All its stores are identical, with the same layout, packaging, and branding. This consistency has helped the staff to focus on delivering quality customer service while reducing training overheads.

Customer Centric Approach

99 Speedmart’s customer-centric approach has helped the company to create a loyal customer base. The company actively solicits customer feedback and uses it to improvise its operations. 99 Speedmart’s staff undergoes training that focuses on customer service, further enhancing the company’s reputation for providing a unique customer experience.

The key takeaway from 99 Speedmart’s successful business strategy is its unique approach to cost leadership. The company’s ability to control costs while providing quality products at affordable prices has been instrumental in its success. The streamlined operations and customer-centric approach have added icing to the cake, making 99 Speedmart a shining example of what small and medium-sized enterprises can achieve with the right business strategy.