Wal-Mart has been selling groceries for a mere 16 years, making it a relative newcomer in the industry compared to most of its competitors. Wal-Mart’s Neighborhood Markets has huge effect on industry, Wal-Mart is traditionally known for its Supercenters, big-box stores that cover expansive square footage and offer extensive product selection. The Neighborhood Markets are significantly smaller and are intended to reach the local markets that aren’t always covered by a Wal-Mart big-box store. In many cases, these markets contain the customers that Albertsons has targeted as crucial to its success. Neighborhood Markets are strengthened by the same low prices and powerful supply chain ...view middle of the document...
Johnston has consolidated distribution centers and is using the Web to coordinate shipments and to reduce billing and invoicing costs.
2. System upgrading
The company has also upgraded its core corporate systems, moving financial applications to software from Oracle and its human resources management to PeopleSoft software. In addition to the Oracle and PeopleSoft adoptions, he has also upgraded the company’s high-speed network infrastructure. Albertsons had already added electronic data interchange (EDI) capabilities, which enable better processing of transactions with suppliers. However, Albertsons does not yet have a system comparable to Wal- Mart for sharing sales data with suppliers and for automatically placing orders in reaction to sales that are taking place in the field.
3. Simplicity of Shopping
Wal-Mart explicitly tries to keep technology in the background to keep customer shopping experiences simple.
4. Talent Hunt
CEO Johnston believes that brain power is just as critical to the success of his company as technology is. Johnston scoured corporate America for the most talented and respected executives in retail and other industries. He hired CTO Dunst away from competitor Safeway, where Dunst had 25 years of experience developing applications, working with loyalty card systems, and using advanced technology to analyze data. The supply chain management team has been stocked with technology pioneers and top guns who bring their expertise from such companies as PepsiCo, Dell, and even Wal-Mart.
5. New Improvement
Albertsons can also use its loyalty card program to obtain more precise information about individual customers and offer products that they might not find on Wal-Mart shelves.
6. Digital Shopping Experience
Larry Johnston’s plans for technology-enabled grocery stores include a completely digital shopping experience that begins in the home and involves the Internet and Global Positioning System satellite technology. Customers would be able to setup 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 loyalty card to obtain and held device. The device would download the shopping list and any other important information and then sync up with the store’s inventory
7. Well managed Portfolio
Wal-Mart currently holds that distinction with $56 million in annual revenue from its grocery departments. Albertsons stands in third place, $20 million behind Wal-Mart in revenue. Albertsons earmarked half a billion dollars for technology advancements in 2004. One goal of this investment is to improve the company’s profit margin. .
8. Good customer Relation
Wal-Mart has good relation with customers and experience in customer...