Can Albertsons 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. Albertsons 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 reap a 3 cent profit for every dollar of sales whereas the industry average is one cent per dollar of sales and Albertsons is about 1.4 cents. Albertsons value proposition is to keep costs as low as possible but try to provide superior service and product selection, since its costs will never be as low as Wal-Mart’s. In the value chain model, Albertsons commits a substantial amount of resources toward implementing new technology,and beefing up its administration and management support. Albertsons uses technology in order to reduce costs in its supply chain by consolidating…… Join Now or Login to view the rest of this paper.
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