Albertsons' Competitive Strategies
|
Code : COM0029
|
Region : US
|
||||
 |
 |
 |
 OR |
||
|
Growth of Food and Drug Store In 1939, Albertsons was opened as a grocery store in Idaho, USA by Joe Albertson (Joe). The store was one of the largest in its time occupying an area of 10,000 square feet – eight times the size of any regular store. Albertsons offered the customers with convenient shopping hours, free parking, top quality products at low prices and money-back guarantee. The store started with 30 employees and five departments that sold both fresh and packaged foodstuff along with meat and fish. Reasonable product quality and prices (for example, 3 pounds of tomatoes, 1 pound coffee and 1 pound roast for 75 cents) enabled Albertsons to garner total sales of $170,000 and a net profit $10,000 by the end of 1939, which increased to $1.5 million in the early 1940s... Forming Competitive Advantages In order to improve the returns on the capital invested and to foster growth, Albertsons started implementing new ways to cater to diverse customer needs. Albertsons started a programin Seattle in 2000 through which it aimed to offer its customers innovative products, tailored to their requirements, through its 'Neighbourhood-Marketing' program, which involved a team that studied the demographic characteristics of the market... Strategic Initiatives In July 2001, Larry Johnston announced five strategic imperatives – aggressive cost and process control, maximisation of return on invested capital, customer-focussed approach to growth, company-wide focus on technology and energised associates. He said, "We are continuing our in-depth operations review. The major actions announced today are just the first in a series of long overdue steps that are necessary to begin unleashing the vast potential of this company. These actions are focused on building amore efficient foundationfor this Company and providing fuel to accelerate profitable growth while strengthening our market positions"... |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
