Albertsons is one of the largest retail food and drug chains in the United States with over 2,300 stores. While Wal-Mart currently has higher annual grocery revenue than Albertsons, Albertsons has invested heavily in information technology to better understand customer buying habits and coordinate their supply chain. Albertsons aims to use advanced analytics and customer data to provide personalized offers, improve operations and inventory management, and ultimately surpass Wal-Mart in grocery sales.

1. Can Albertsons Trounce Wal-Mart with Advanced Information Technology?case study

2. Brief of case study2,305 retail stores in 31 states.Albertsons is one of the largest retail food and drug chains in the world.Stores flying the Albertsons flag include Albertsons, Albertsons Express, Albertsons-Osco, Albertsons- Sav-on, Jewel, Jewel-Osco, Acme, Sav-on Drugs, Osco Drug, Max Foods, and Super Saver Foods.Among these retail stores are 1,351 combination food-drug stores, 707 standalone drugstores, and 247 conventional and warehouse stores

3. Continue.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.Wal-Mart’s Retail Link network pulls in point-of-sale data from its retail stores every 15 minutes.Albertsons earmarked half a billion dollars for technology advancements in 2004.

4. Continue.Wal-Mart is a moving target and it continues to move faster and farther. Johnston has saved Albertsons approximately 500 million already, but sales haven’t increased significantly. Meanwhile, Wal-Mart’s grocery sales continue to grow steadily.Albertsons invested $50 million in an NCR Teradata warehouse to examine customer buying habits. By providing customer loyalty cards, Albertsons can give loyal customers special offers and track exactly what they buy and when they buy it.

5. Continue.Albertsons has the financial backing to continue investing heavily in advanced information technology.The company has recently joined Wal-Mart in requiring (by April 2005) its suppliers to use radio-frequency identification (RFID) tags on all product shipments.

6. What role do information systems play in Albertsons’ business strategy? How do systems provide value for Albertsons?Using IT for competitive advantageThree level frame workIndustrial levelProduct and serviceMarginFirm levelSuppliers(control power on suppliers) service(augmented service)Improving perceives performance and valueStrategic levelUnderstand competitive positioningOverall business strategy

7. Continue.Shelf service check out in storesDigital shoppingIndependent customerInvested $50 million in an NCR Teradata warehouse to examine customer buying habits Customer loyalty card.Coordinate shipmentEDIRFID

8. Compare Albertsons to Wal-Mart in terms of business strategy, current success, and future successSupply chain managementPrice Sales data TechnologyCustomer buying experience

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