Publix Supermarkets Essay Example for Free

Publix Supermarkets EssayThe factors that argon currently complex in successfully competing in the supermarket industry are the same factors that hand light-emitting diode to the success of Publix supermarkets. These factors allow in delivering superior customer value, caring for people, and delivering quality productions and service. Publix has gone a step further and developed cardinal success drivers for the company knowing the affair, knowing the product, knowing the customer, and continuously reproduction people.Due to the fact that customers are more knowledgeable and demanding than ever before, change is constant throughout the supermarket industry. As a result, to remain emulous for the next 10 years and beyond, knowing what customers need and being able to meet those involve is be critical. For example, as the population becomes more diverse, in that location will be a greater demand for mixed ethnic food products. Similarly, as health and nutrition become mo re of a national focus, t present will be a greater demand for high quality foods that are rich in nutrition, as well as organic products, etc.In addition, technology such as egotism checkout stations in supermarkets and online shop capability will continue to change the landscape of the supermarket industry. What are the values of Publixs organizational culture employees customers shareholders suppliers and competitors? Which ones do you consider to be value adders and which do you apprehend as value destroyers as Publix attempts to become the premier quality food retailer in the States? Publix has a corporate culture founded on the philosophy of deeply caring for people.Publix employees understand that they are non only in the market place business, save also in the people business. As a result, taking care of associates, customers, suppliers, and others in the community is a priority. The result of Publix employees continue to please their customers, more customers look to Publix for their shopping needs. At the same time, employees and associates are made to feel valuable through recognition programs, extensive training programs, etc. Publix believes that their employees will non have the ability to make customers keen if they are not happy themselves.By investing in their employees, Publix has created a culture of loyalty, pride, and job satisfaction. By making a freight to people and creating lasting relationships with employees, customers, suppliers, and the community, Publix has positioned itself as an industry leader. This philosophy and corporate culture play a macroscopical role in the success of the company and can only be considered as value adders, not value destroyers. What factors are currently influencing a customers decision to shop at Publix? why have competitors been unable to duplicate such success factors successfully?Publixs mission statement actually clearly states that Publix is passionately focused on customer value. Essent ially, the company is just committed to satisfying the needs of its customers better than its competitors. While the competition is able to offer good prices and quality products, Publix stands out in the minds of its customers for providing delicious customer service in every shopping experience. There is no doubt that Publix needs to guard competitive prices and quality products in order to be successful. However, these are easily duplicated.On the other hand, providing a delightful customer experience comes from the culture of an organization committed to creating superior value. This is what sets Publix apart from its competitors. Analyze how PublixDirects processes were used to add value. In hindsight, what should the company have done differently to keep PublixDirect a viable business precedent? PublixDirects business model sought to add value by utilizing a centralized direct fill fulfillment approach. In addition, PublixDirect was limited to a 35-mile radius in southeas tern Florida.The company utilized a 140,000 square foot distri neverthelession center divided into separate departments, and operated its confess bakery dedicated to the online venture. The company utilized the latest technology for order taking and fulfillment, outbound logistics, and payment. PublixDirect was founded on the same philosophy as Publix supermarkets with the goal of delivering superior customer value. The goal was to offer customers a agreeable alternative to traditional grocery shopping with prices similar to that of local supermarkets while offering superior product quality and customer service.Unfortunately, PublixDirect was unable to sustain trading operations. Initially, the business model appeared as though it would be successful, but that proved not to be the case. In hindsight, the company should have done more extensive explore about its potential customers, and done more to attract the type of consumers originally targeted which were dual income househol ds with incomes exceeding $75,000. What were the factors that led to the demise of PublixDirect? What does it take to create a successful online operation in the United States?High sales talk costs, distribution center costs, and low customer demand were all factors that contributed to the demise of the PublixDirect operation. To date, none of the various online gorecery operations I ntroduced in the United states have been able to turn a profit, and therefore none have been able to sustain operation long term. However, the primary problem seems to be the inability to turn internet due to the high costs associated with distribution centers. In order to create a successful online grocery operation here I n the United States, it would be best to follow the same model that U. K. based Tesco has successfully implemented.Rather than utilize distribution centers for order fulfillment, Tesco uses a store-pick model in which orders placed online are simply picked from store shelves. Deli very costs are added to the cost of the groceries. This model has proven to be successful in the United Kingdom and could very well be successfully implemented here in the United States as well. The warehouse/distribution center model has the potential to be cheaper long-term, but the large up-front costs have proven to be enough to put several online grocers out of business before they were able to turn profits.