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Unformatted text preview: 4/3/12 11:28 PM CIS 66 -Management Information Systems - Group Work #3 Page 1 of 6 http://www.santarosa.edu/~ssarkar/cs66fl08/gw/gw3s.htm Group Work #3 SOLUTION- Case Study pgs. 109-111 .......due dates in class Sec #4507 (February 6, 2008) & online Sec #5414 (February 9, 2008) Solution: Case Study: Can Albertson Trounce Wal-Mart with Advanced Information Technology? 1. Analyze Albertsons using the value chain and competitive forces model. The grocery industry as a whole is competing aggressively for razor-thin profit margins. Albertson has much to do to gain a competitive advantage against Wal-Mart who are famous for keeping the prices of its merchandise low, but still reaps a 3 cent profit for every dollar of sales whereas the industry average is once cent per dollar of sales. In the value chain model, Albertson s have committed a substantial amount of resources towards implementing new technology, and beefing- up their administration and management support. Albertsons are using technology in order to reduce costs in its supply chain by consolidating distribution centers and using the Web to coordinate shipments and to reduce billing and invoicing costs. The company has also upgraded its core corporate systems, moving financial applications to software from Oracle and its human resources management to PeopleSoft software. They have also upgraded the company s high-speed network infrastructure and have added electronic data interchange capabilities which enable better processing of transactions with suppliers. Albertson s must work on their marketing strategies to gain customers who are open minded to the use of such innovative technology. In looking at Figure 3-15, Porter s competitive forces model, Albertsons have not given enough attention to the fact that the traditional industry competitors will be a monumental challenge....
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This note was uploaded on 04/03/2012 for the course INFO 360 taught by Professor Wynne during the Fall '08 term at VCU.
- Fall '08