Intel
H.E BUTT GROCERY COMPANY
The New Digital Strategy ; A Leader in ECR Implementation
SITUATIONAL STATEMENT
In the year 2000, the internet was emerging as a new distribution channel that would transform the grocery industry by providing a powerful communications network for the direct sale of groceries to the consumer. The internet was also a promising tool for the way that business to business transactions would take place. There were new opportunities to gain efficiencies in the supply chain and in the distribution channels. Given that the grocery industry is extremely competitive, Fully Clingman the president and CEO of H.E.B. Grocery Company are placing renewed emphasis on technology and new systems to gain greater market share and to provide better customer convenience. H.E.B is also in the process of implementing (CRM) customer relation management systems to better serve their customers. A new organization structure was announced to intensify this company's rapidly evolving technology, but is this the best way to grow the business? What are the competitors doing? Are these new systems and technologies going to be easily adopted by their suppliers? These are all important questions that they must ask themselves in moving forward with this new strategy. The market is changing and so are the customers, they want around the corner convenience at low prices. Online grocery shopping is becoming more popular and H.E.B must protect their market share so they are going to redesign their web-site to further support this growing trend. H.E.B has also planned to launch a transactional pharmacy web-site to further their value added on-line services. Although the internet looks promising, does H.E.B really want to grow their business through this avenue? or should they stick to their original bricks and mortar approach? They also are contemplating the use of loyalty cards so that they can get individual customer data at the point of sale, the cash.
The New Digital Strategy ; A Leader in ECR Implementation
SITUATIONAL STATEMENT
In the year 2000, the internet was emerging as a new distribution channel that would transform the grocery industry by providing a powerful communications network for the direct sale of groceries to the consumer. The internet was also a promising tool for the way that business to business transactions would take place. There were new opportunities to gain efficiencies in the supply chain and in the distribution channels. Given that the grocery industry is extremely competitive, Fully Clingman the president and CEO of H.E.B. Grocery Company are placing renewed emphasis on technology and new systems to gain greater market share and to provide better customer convenience. H.E.B is also in the process of implementing (CRM) customer relation management systems to better serve their customers. A new organization structure was announced to intensify this company's rapidly evolving technology, but is this the best way to grow the business? What are the competitors doing? Are these new systems and technologies going to be easily adopted by their suppliers? These are all important questions that they must ask themselves in moving forward with this new strategy. The market is changing and so are the customers, they want around the corner convenience at low prices. Online grocery shopping is becoming more popular and H.E.B must protect their market share so they are going to redesign their web-site to further support this growing trend. H.E.B has also planned to launch a transactional pharmacy web-site to further their value added on-line services. Although the internet looks promising, does H.E.B really want to grow their business through this avenue? or should they stick to their original bricks and mortar approach? They also are contemplating the use of loyalty cards so that they can get individual customer data at the point of sale, the cash.