hw 2 - Page 109 Case Study Can Albertsons Trounce Wal-Mart...

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Page 109 Case Study Can Albertsons Trounce Wal-Mart with Advanced Information Technology? 1. Analyze Albertsons using the value chain and competitive forces model . Firm Albertsons Inbound Logistics RFID allows Albertson to better manage their supply chain Operations Self service checkouts Electronic Data Interchange system Sales and Marketing Not able to compete with market leader in price offerings. Not able to compete in physical store size. Competitive edge in Urban markets Offers Butchers, Bakers, and gourmet coffee bar. Service GPS satellite system and internet access to set up shopping lists from home. Customer loyalty cards that could sync with the store for guided shopping. Text notifications of sale offerings. Outbound Logistics No system of sharing sales data with suppliers. No automated placing of orders from suppliers. Competitive Forces
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HIGH The Industry Low cost leaders Thin profits Saturated Markets LOW New Market Entrants Thin profits High Competition HIGH The Industry Low cost leaders Thin profits Saturated Markets MEDIUM Suppliers Access to sales data to better supply market. Little Bargaining Power. HIGH Substitutes Neighborhood markets Other food chains HIGH Customers Value Shoppers Brand Recognition
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2. What role do information systems play in Albertsons’ business strategy? How do systems provide value for Albertsons? Albertsons has begun to install self service checkout stations in some of its stores. These stations enable customers to scan the items they are buying to create a sales and pay for the items by swiping a credit or debit card, all without the intervention of a cashier. Using a handheld scanner, customers may scan their purchases as they place them in their shopping cart, in a checkout process that may take only a few seconds. Not having to wait in line to pay at the supermarket can be major draw for customers. Albertsons views this improvement to the shopping experience as exactly the type of change it wants to implement to keep its current customers happy, bring in new customers, and thereby increase sales revenue. Larry Johnston the CEO plans for technology- enabled grocery stores include a completely digital shopping experience that begins in the home involves the Internet and Global Positioning System satellite technology. Customers would be able to set up their shopping lists from home through an Internet portal that is connected to their local Albertsons store. They could also add information to their accounts such as allergies and dietary restrictions. When customers arrive at the store, they would use a customer royalty card to obtain a handheld device. The device would download the shipping list and any other important information, and then sync up with the store’s inventory. The device would guide customers through the store on the most efficient path to gather and scan all of their items. In addition, receive text messages notifying them about special offers, photos and
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This note was uploaded on 04/14/2010 for the course MIS 316 taught by Professor Kristine during the Spring '10 term at York University.

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hw 2 - Page 109 Case Study Can Albertsons Trounce Wal-Mart...

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