Albertsons Company: IT Strategies to Overcome Weakness & Competition

This case study analyzes Albertsons' competitive position and proposes IT strategies to address weaknesses and threats from external forces. It uses SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Porter's value chain and competitive forces models are applied to assess the company's internal capabilities and external competitive environment. The Ansoff Matrix suggests strategies for market penetration through online exposure and diversification into new markets. The analysis highlights the need for Albertsons to enhance its online presence, improve customer offers to compete with Walmart, and explore new product categories to maintain and improve its market position. Desklib provides access to similar case studies and solved assignments for students.

Running head: ANALYSIS OF THE ALBERTSONS COMPANY
ANALYSIS OF ALBERTSONS COMPANY
Name of Student
Name of the University
Author Note

1ANALYSIS OF THE ALBERTSONS COMPANY
ALBERTSONS Inc.
250 Park Street Boulevard
Boise, Idaho
USA.
Date:
From: Chief Information Officer
To: The Chief Executive Officer
Subject: To propose IT strategies to overcome the weakness and threats due
to external competitive forces.
As we discussed the Albertsons have been facing the huge competition in the companies.
In order to compete with the companies. We need to improvise the IT strategies in order to
achieve the position of the most trusted retail chain. The case analysis of the company will guide
us to take better steps for the company.
SWOT Analysis
Strength: the company has a reputation among its customers because it provides:
 Largest and best quality food.
 Reward cards that draw attention of a lot of customers (Ahmed,2016).
 Updated with new technologies like GPS tracking.

2ANALYSIS OF THE ALBERTSONS COMPANY
 Work friendly environment.
Weakness:
 Lacks global exposure with respect to online retailers.
 We had been charged against for hazardous waste disposal.
Opportunities:
 Our company can try to step in different fields of marketing.
 the company must collaborate with other retail companies to increase its
profitability,
 try social media marketing
Threats
 The Walmart and other online companies.
 The fast moving good companies are opening their own retail outlets.
Porter’s value chain Model
 The value chain can be used to analyze competitiveness, market share, and cost
reduction as overall development of the company (Ayer& Odegaard, 2017).
 We have firm infrastructure with improved infrastructure by holding place in 30 +
states in America.
 We have a staff friendly environment that has more than 11000 satisfied
employees.

3ANALYSIS OF THE ALBERTSONS COMPANY
 We have really low price and they set up many offers and reward cards for the
customers.
 We fulfill all the requirement of an ideal company from the value chain.
Porter’s Competitive Forces Model
The result depicts that there are a lot of competition by new entrants of fast moving goods
retail outlet that has to be faced by the Albertsons like P&G, Unilever. The suppliers are quite
dormant regarding bargaining over the prices for the organization. Bargain from the side of the
customers because we deliver best quality products in low price. There are reward cards for the
customers that provides extra discount on the bill(Clark,2015). The threat of being substituted is
faced by rival companies Walmart, Safeway who are providing online retail site with better
discounts over their products.
Ansoff’s matrix:
According to the Ansoff”s Matrix that focuses on overall development of the
organization the company should get some online exposure through social media marketing and
digital marketing to increase its market penetration (Gurcaylilar&Akshoy, 2018). The company
must have a web application to gain more customers to reach easily to the existing products. The
new markets could be entered by trying their capabilities in other industry like fashion, décor,
hardware. By diversification of the products and launching their new brand and other new
products

4ANALYSIS OF THE ALBERTSONS COMPANY
Result Table
Strength Value chain
analysis
Competitive
forces Model
Ansoff’s matrix
Second highest
retail industry ,
provide reward
cards to long term
customers
Firm infrastructure
they have 2200
stores
Fast moving goods
are opening retail
outlets,
The company
should launched
new products or
may be their own
brand.
Addressed by
opportunities
Staff friendly, Staff friendly
environment with
more than 11000
satisfied
employees.
Online grocery
stores Amazon is a
new threat to the
company.
The company
should try their
capabilities in
fashion, home,
décor and
accessories
Addressed by
opportunities
Updated and
innovative
Hold second
largest retail
industry in
America.
Suppliers are
dormant towards
bargaining because
of the brand
loyalty.
The company
should try to reach
their customer
through online
sites and web
application
Addressed by
weakness.
Weaknesses Inbound logistics
include invoice
billing machines,
GPs tracker,
barcode readers,
Customers are
readily looking for
new offers and
products from the
company. The
offers glue the
customers to this
industry.
The company must
create better offers
than Walmart to be
the largest retail
industry.
Address by
weakness
Less global
exposure
Outbound logistics
constant fresh
foods supply
money back
guarantee, pay on
delivery
There is a neck to
neck competition
Against Walmart,
in order to be the
largest retail chain,
The offers that
Walmart provides
can easily replace
the company
High competition
Opportunities
New products

5ANALYSIS OF THE ALBERTSONS COMPANY
New marketing
industry
Social networks
and web
technology for
marketing
Threats
Fast moving goods
opening retail.
Walmart and
Safeway have
online exposure
New online stores

6ANALYSIS OF THE ALBERTSONS COMPANY
References
Ahmed, F. (2016). Online grocery shopping in Jyväskylä: Business models & Demand.
Ayers, J. B., & Odegaard, M. A. (2017). Retail supply chain management. CRC Press.
Clark, G. W. (2015). Diffusion of the Kroger Presence Through Expansion and Acquisition.
Gurcaylilar-Yenidogan, T., & Aksoy, S. (2018). Applying Ansoff’S Growth Strategy Matrix To
Innovation Classification. International Journal of Innovation Management, 22(04),
1850039.