Case Analysis 1: Sara Lee vs Dell vs JCPenney
With the advance of technology and the development of society, the competition in industry is increasing intense. If there is no any innovation and just standstill for a company, it will be out of business quickly and be replaced by other competitors. Under this condition, every company wants to make wise strategy to gain profits and strength their competitiveness in the industry. Information technology plays an important role when companies develop strategy.
Overview of the problems each company is facing
For Sara Lee Bakery Group (SLBG), they delivered fresh-baked goods to their retailers directly. The delivery people needed to count at ...view middle of the document...
For SLBG, they built SBT system could help them to save time. Delivery people do not have to count at the back door during back door open time, and also use this time to train delivery people in order to improve their work quality. In addition, the scan data will be collected to the system. As a bake group, the information of customer’s choice is very important to producer. They can gain and analyze important decision from the data. Such as, what is the best sell good? And which store/retailer has most number of customers?
For Dell, they created an extranet for suppliers. Suppliers could see all order information and Dell’s production schedule. They could feed this information into their own production system. And produce the computer for different orders.
For JCPenney, they will have full utilization of Wi-Fi, RFID, and mobile checkout system. It could replace traditional checkout counter. By this change, information technology could help customers to do checkout more convenient. In another way, it will improve sale man’s work quality. Just like Apple’s sale man, they not only can introduce the information of products, but also could do other service for customers, like checkout, return, and etc. A sale man can do the whole business independent. It is a trend, and also it could help company to strength customers’ loyalty and the fame of company.
The second similarity is in these cases customer-centric value chain is the common model.
For SLBG, it no longer to sell bakery goods to its retailers first, on the contrary, by using SBT, retailers could pay for bread after it is sold. In addition, SLBG’s delivery people will restock the shelves to make the store look better for the before-dinner rush of shoppers.
For Dell, customer-centric business model makes Dell save cost on inventory. Dell does not produce too much computer, the produce process occurred after received customer’s order. In addition, the extranet helps Dell to share information with all suppliers. This strategy helps Dell and its suppliers saving time, saving cost, and decreasing risk from less inventory.
For JCPenney, it concerned users’ experience. There are 90% of their mobile checkout system was customized. Wi-Fi, RFID, and mobile checkout system are all built to serve customer, in order they can have better shopping experience.
Key differences of the situations
There are some differences between three cases. Such as: different industry involved; different problem faced; different strategy developed and etc.
For different industry involved, SLBG is a food manufactory, Dell is an electronic equipment manufactory and JCPenney is composite department market.
For different problem faced, the problem that SLBG faced was how to build and manage SBT relationships with retailers; Dell faced how to decrease cost and delivery cycle; JCPenney faced how to transform from traditional checkout system to a customized checkout system.
For different strategy developed, SLBG...