BUS300: Case Study Analysis and Evaluation of Oz Supermarket

The assignment presents a case study analysis of Oz Supermarket, focusing on its implementation of a cashless payment system and RFID technology to enhance customer experience and streamline shopping. The case explores the PayWave system, where customers use cards with RFID chips in trolleys, and examines the advantages of reduced queue times and cashless transactions. The analysis covers two scenarios: the initial store setup and a drive-through model, evaluating the challenges and recommendations for each, including location selection, parking, and customer feedback. The study also discusses potential issues like high costs and the need for careful planning. The analysis draws on multiple academic sources to provide a comprehensive evaluation of the supermarket's business model and its potential for success and identifies areas for improvement such as customer feedback and fresh products.

Running Head: Case study Analysis and Evaluation
OZ supermarket
Case study Analysis and Evaluation

Case study Analysis and Evaluation 1
Question 1
Oz supermarket has opened its stores in different parts of the globe with a view to
providing instant service to its customers as well as risk-free experience in purchasing
household and other necessary things. Chairperson and directors of Oz supermarkets
have decided to provide a cashless and peaceful experience in terms of reducing the
rush from exit queues (Zielke, Toporowski & Kniza, 2011). Oz supermarkets are offering
only households items such as grosser items, stationary things, and non-perishable
goods. For purchasing these types of goods, customers’ needs to spend a lot of time in
stores and supermarkets but Oz store have invented the idea of providing cashless and
quick service. Oz supermarket has adopted the PayWave technology under which cash
is not accepted from its customers. As per this technology, a PayWave card is issued to
the customer and while entering the store, customer needs to swipe his card and took a
trolley with a RFID chip installed in the trolley. All those items selected by a customer
and put it into the basket will automatically be counted as purchases. In the scenario,
when the customer wants to delete the item from his purchases, that item is
automatically being reduced from his purchases. After completing the purchases,
customer needs to move towards the exit gate and while exiting the store, he needs to
swipe his PayWave card again for making payment and for exiting the store as well. If in
case, customer’s PayWave card does not have sufficient balance in his card, an alarm
will ring (Kurnia & Peng, 2010).
As per this technology, only one person is allowed to enter on a card and if children or
any other person wants to enter the store, he can get a card from the store counter

Case study Analysis and Evaluation 2
through submitting a certain amount of money and that money will be recorded in his
PayWave card. While exiting the store, the customer who has taken the instant
PayWave card can withdraw their money or they can move forward with the card for
their future purchases (Yada, 2011).
This technology will help the customer to save their time as well as to choose cashless
transactions. As this technology is bit high cost consuming but customers who are in
hurry and do not want to stand in queues will be ready for bearing the extra cost for their
purchases. Thus, customers do not need to stand in queues for making payments and
the usage of this kind of technology takes the shopping towards a next level i.e. smart
and less time consuming (Hou & Chen, 2011).
Trolleys, as well as the items kept in the store, have a specialized chip called RFID
through which customers' cart is automatically updated while taking or removing the
item from the cart. RFID chips increase the prices of the products but this extra cost will
be absorbed from those customers who are in rush. In Oz supermarket, many shopping
summary stations are fitted through which customers can gather information regarding
their picked products in the trolley. This will help the customer to get an estimate in
relevance with the payment for their shopping as well as these stations also provide the
facility to customers to check the balance available in their PayWave card (Shi, Zhang &
Qu, 2010).
Oz supermarket has also planned for the parking customers’ vehicles. Those customers
who want to park their vehicles and shop from inside the store, car parking facility will
also be provided and the parking will be on the basis of time consumption. In peak

Case study Analysis and Evaluation 3
period, a store will charge parking on the minute’s basis. Parking will be free for
disabled customers and no extra charge will be charged from them for providing wheel
chairs or any other facilities.
Recommendations
The idea opted by Oz supermarket is unique as well as result oriented especially in
those places where people are running short of time. The directors of this store should
concentrate on opening the store with this kind of technologies and in busy places such
as New York, USA, UK, etc. People over there will be able to afford these kinds of
services, as well as the success of these stores, could only be analyzed in those places
only (Fiedler, Keppler & Öztüren, 2012).
Apart from opening the store in busy places, this kind of store requires a big place and
in the countries like USA and UK, land cost is very high which is will impact on the
prices of the products sold in the store. Hence, Oz supermarket needs to analyze all the
internal as well as external factors before setting up the stores because, in the poor
countries or states, this kind of store will not be able to achieve adequate success.
So, if organization’s budget is capable enough to afford expenses of big and developed
countries then it should be commenced from there only. Because setting up the
advanced technology stores in under developed countries will not achieve success as
people over there will first try to fulfil their basic needs apart from saving time and
waiting in long queues and as per a survey report, supermarkets are successful in
developed countries only because people over there try to save on each and every item
through bargaining or through compromising with product’s quality.

Case study Analysis and Evaluation 4
Apart from these, it is recommended that as Oz supermarket is being created with a
view to providing advanced and quick service to those people who are in rush. Hence,
their perception should be asked with a view to making the business as per their
requirements. Adequate steps should be taken to solve the customers’ issues as well as
to build the trust in the customers’ mind towards the organization.

Case study Analysis and Evaluation 5
Question 2
In addition to this plan, Oz supermarket could also adopt the method of providing the
same facility to customers under which they do not need to park their vehicles. They
can move forward in their cars only and stop at the stations as per their requirements in
the store. Under this procedure in an open ground, various stations will be developed as
per the items available in the store. For instance, one section for packed eatables, one
for grocery, etc. and then entry and exit procedure will remain same as per the above
idea. The basic difference will be customer need to swipe their card while entering the
premises of the store and in the above idea, customers’ need to swipe their cards at the
time of entering into the store (Polasik, et. al., 2011).
This option of providing products to customers without leaving their cars will reduce the
efforts of customers but it will require a big place where the separate section will be
maintained for unique products. Apart from this, this option will increase the customer
experience as they do not need to move here and there in the store, they just need to
stop their car at the station of goods which they require. An organization may face some
problems in the scenarios where customer's car will stop in between the stations, other
customers will also get stuck due to this situation and traffic jam, as well as a failure of
the idea, could be assumed. Hence, before implementing this plan, appropriate
resources should be planned so that if any kind of intolerable situation arises, that could
be resolved as soon as possible (Yang, Zhuang & Wong, 2012).

Case study Analysis and Evaluation 6
Customers’ feedback should also be taken time to time so that appropriate changes
could be made because these kinds of stores are setup to provide the facilities to
customers. Hence, if customers want some changes in the procedure of Oz
supermarket then it should be implemented so that customer’s requirements could be
matched up. This option will result in the implementation of extra cost in terms of above
idea.
Under this option, where customers do not need to leave their vehicles and all products
will be provided to them in their cars only, other persons sitting in the car does not
require to register for PayWave card. If any product is being picked up by a customer
without having PayWave card, an alarm will ring at the exit gate. As all cars will be
scanned before entering the premises and while exiting the premises and if anything
unethical found then strict legal actions will be taken to reduce the chances of fraud
(Polasik, et. al., 2011).
In this option, customers' need to swipe their PayWave card while entering the store
and a bag will be provided to them in their vehicles only and selected products by the
customers will be put in that bag only. If a customer will keep any product in their
vehicle by mistake or willingly then at the check-out point, an alarm will be ringed
because each and every product kept in the store will be covered through RFID
technology chip and while billing that chip will be removed with an advanced equipment
and it will not be able to remove without that equipment. Hence, that product which is
kept without bag will not be included in the bill amount and that chip is also not being
removed from that product's packaging. So, its alarm will be ringed while scanning the

Case study Analysis and Evaluation 7
car and then customers' perceptions will be asked. For this reason, the shopping bag is
being provided to all those customers who will enter the Oz supermarket's premises so
that customers do not face any kind of issue (Jung & Kwon, 2011).
Recommendations
For improving business services and improving customer's experiences, parking
charges would be removed so that number of consumers could get attracted towards
Oz supermarket. Taking customers' feedback into account and working on an
implementation of customers' suggestions to realize them that they are crucial elements
of the organization. This will help them to build trust level towards the organization.
Apart from this, only fresh and adequate qualitative products should be kept in the store
because after paying high prices than a market, customers will expect adequate quality
and appropriate service from the store. If these things would not be implemented in the
store then the organization may need to suffer losses or customers will also move
towards the normal supermarkets and other local shops. Basic idea of setting up this
kind of store is to save the customers’ time as well as their efforts, hence; in peak
seasons, appropriate actions needs to take to control the public such as fixing certain
number of people for entering the store at a time or opening extra number of stations for
certain period of time to provide adequate services to the customers who are paying
extra for saving their time (Dean, 2013).

Case study Analysis and Evaluation 8
Time to time reviews should be taken from the customers so that certain necessary
amendments could be implemented in relevance with the quality of the product, quality
of services, etc. apart from the reviews, customers should be treated with attractive
offers time to time and sale should also be conducted with a view to clear the dead
stock as well as to enhance the sales of the organization (Trebar, et. al., 2011).

Case study Analysis and Evaluation 9
References
Dean, D. H. (2013). Anticipating consumer reaction to RFID-enabled grocery
checkout. Services Marketing Quarterly, 34(1), 86-101.
Fiedler, M., Keppler, T., & Öztüren, A. (2012). Contactless Payment, A Rfid Domain And
Its Acceptance By Card Holders. Viii. İnterdisciplinary Management Research
(Imr) Conference.
Hou, J. L., & Chen, T. G. (2011). An RFID-based shopping service system for
retailers. Advanced Engineering Informatics, 25(1), 103-115.
Jung, I. C., & Kwon, Y. S. (2011). Grocery customer behavior analysis using RFID-
based shopping paths data. World Academy of Science, Engineering and
Technology, 59, 2011.
Kurnia, S., & Peng, F. (2010). Electronic commerce readiness in developing countries:
the case of the Chinese grocery industry. In E-commerce. InTech.
Polasik, M., Górka, J., Wilczewski, G., Kunkowski, J., Przenajkowska, K., & Tetkowska,
N. (2011). Time Efficiency of Point-Of-Sale Payment Methods: Empirical Results
for Cash, Cards, and Mobile Payments. Social Science Research Network
Working Paper, February, at http://ssrn. com/abstract, 1769922.
Polasik, M., Przenajkowska, K., Starogarska, E., & Maciejewski, K. (2011). Usage of
Mobile Payments in Point-Of-Sale Transactions. Prace Naukowe Uniwersytetu

Case study Analysis and Evaluation 10
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Shi, J., Zhang, J., & Qu, X. (2010). Optimizing distribution strategy for perishable foods
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Zielke, S., Toporowski, W., & Kniza, B. (2011). Customer acceptance of a new
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