Ann: Half Year Financial Report 31 December 2017, page-25

I suspect "circle of competence" is not the real issue. One can be very competent at running a hardware chain, for example. The question is, what is their source of competitive advantage. Competence probably is one, but is it the main one? Does it trump scale advantages, or established supplier relationships, or customer awareness, brand etc etc?

Why should one be able to beat incumbants in geographies where one probably does not have many, if any, of those advantages? Especially when the incumbants likely have advantages in better understanding of the local market, cultural norms etc.

Competence may have very little to do with it.