Case Analysis Chapter 1
In summary, this case is about SAB Distribution’s CEO, Susan Weber’s proposition to collaborate with Central Transport in transforming the direction of SAB. Susan wants to attract larger retailers in the Mid-Atlantic States by adding services such as warehousing, transportation delivery, and inventory management to their business model. Susan is proposing the idea to Jean because Central Transport has experience in these areas, and Central Transport has worked with SAB Distribution in the past. Susan also approached Wegman’s Food Markets as a potential customer for SAB Distribution’s new services. Wegman’s Food Markets already offer an array of additional services to customers, such as in-store bakery, in-store cooking demonstrations, and take-out options.
1. The competitive market place for SAB has changed tremendously over the last five to seven years. The rate of change for the competitive market place is driven by several external forces including globalization, technology, organizational consolidations, empowered consumers, and government policy and regulations. For example, the impact of the consumer is much more direct than it was seven years ago. Today, the consumer has placed increased demands at the retail level for an expanded variety of products and services. This explains why Wegman’s business model offers so many added services to customers shopping in their grocery store. By offering these additional services, Wegman’s can set themselves apart from their competitors. It is important that SAB focus on the customers, and be flexible and responsive to them. 2. Central Transport could experience many advantages in the proposed venture. First off, Central and SAB have worked successfully with each other in the past when SAB transformed its operations to respond to challenges in the competitive market place, therefore it will be a fairly smooth collaboration, since the two have previously done business together. The new...
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