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Chapter 15: Wholesaling & Physical Distribution 15-1 SUPERVALU AND GROCERY DISTRUBUTION STRATEGY (401, 428) The Supervalu case study in Chapter 15 highlights two expansion strategies currently used by this company. Let's address these one at a time... a) On the domestic front, Supervalu is increasing the number of retail stores it owns and operates. Below are the URLs for Supervalu corporate and one of its retail subsidiaries: Supervalu http://www.supervalu-intl.com bigg's Hypermarkets http://www.biggshyper.com What do both of these sites tell you about Supervalu's strategic advantages in operating retail outlets such as bigg's? What are the risks of this strategy for Supervalu? Do you think that this strategy will pay off in the long run? Why or why not? b) Supervalu is also developing its position as a major wholesale food exporter. As you explore Supervalu's corporate homepage, summarize the efforts they are making to enter and grow in these markets. Then compare these strategies to those of Supervalu's main competitor, Fleming Companies: Fleming Companies http://www.fleming.com How do Fleming's international strategies compare to Supervalu's? How would you characterize the international market potential for both of these companies - i.e., what are the opportunities and barriers in this global environment? 15-2 THE NATURE OF WHOLESALING (402-3) For this exercise you will need to find the Web homepages for three companies that can be classified as wholesalers. The easiest way to start this process is with a Yahoo! and/or AltaVista keyword search using the term "wholesale." Yahoo! http://www.yahoo.com AltaVista http://www.altavista.com From the resulting list of links, choose three homepages that represent wholesaling operations. Justify your choices by illustrating how each operation conforms to the authors' definition of wholesaling on p. 402. What services and products do these firms provide? What is their relationship to the producers and retailers with whom they do business? Explain why the following firm can be classified as a full-service merchant wholesaler. Cite specific examples to support your answer. Azerty Inc. http://www.azerty.com How would you classify the following agent wholesaling middlemen according to the six types described by the authors (see pp. 410-3)? Use examples from each homepage to define these types and support your answers. Topeka Auctions http://www.auctions-usa.com P>AMI Group http://www.allenmgmt.com/amicos.htmlIntertrade Canada http://www.intertradecanada.com Techni-Safe http://www.techni-safe.com Which type of wholesaling middleman, if any, is most likely to be used by each of the following firms? Explain your choice in each instance. Feather Industries http://www.featherind.com Jolt Cola http://www.joltcola.com Mothers Polishes http://www.mothers.com Yankee Containers http://www.yankeecontainers.com 15-6 SYSTEMS APPROACH TO PHYSICAL DISTRIBUTION (416-8) To gain a better understanding of the systems approach to physical distribution, take a look at the following homepages: Hi-Tech Logistics http://www.hitlog.com GENCO http://www.genco.com CAC Logistics http://www.caclogistics.com Summarize the physical distribution services provided by each of these firms. Citing examples, describe the kinds of companies most likely to use these logistics systems. What are the strategic advantages and disadvantages of outsourcing physical distribution in this way?
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