Publix Super Markets, Inc.: Achieving Customer Intimacy Harvard Case Solution & Analysis

Societal-cultural:

            The sociocultural segment of Publix Super Markets has been focused towards the concept of “As long as the company can look after the customers better than anyone else, the company will defeat the competition.” Moreover, the focus of the company is to ensure quality products. Since the market has become price conscious, therefore, the rates have also been reduced and the company has been offering low priced quality products. Since United States is a metropolitan country; therefore, Publix offers products that cater the needs of different cultures simultaneously. Publix has been quite flexible in its approach to engage customers from various backgrounds.

Demographics:

As per the survey conducted by American community for the five year period of 2008-2012, the majority of the population in the United States, i.e. 41%, is in the age range of 25 years to 54 years of age. Each age group has an average share of 13.7%. However, the survey revealed that 19.8% of the United States population consists of children who under the age of 15 years. Furthermore, the median age of the US population has been calculated as 37.2 years. Meanwhile, the females 50.8% and male person are 49.2% of the US population. Snacking amongst the people has increased to 56% in 2010.

Economy:

            The constant increase in the fuel prices in the international market have made the prices increase for all the goods. Publix, therefore, has been finding ways to actually reduce the cost of delivery. Due to the increase in the wage rate of employees in the United States, the cost of retail stores has increased considerably. The consumer spending patterns have reduced significantly in the recent times.

Physical natural:

            The store locations for Publix has been quite well connected keeping in mind the overall atmosphere of the place. Publix has been focused on serving high quality rather than low prices; therefore, it has focused on locating itself at open places, easy parking, etc.

Political-legal:

            The political condition of Publix and the country is quite stable for the company. With respect to the changing political situations and the transformation have had a positive impact on the firm. The company has been focused on making sure it follows the trade policies set by the government. The market of the United States comprises of approximately 70% of the market where it contains general retail stores, therefore the government has actually reduced the tariffs and the ending Multi Fiber Agreement has helped the company.

Technology:

            Publix has been quite advanced and innovative in terms of the technology used. It has been using new technology to become more responsive to customers. The use of technology at Publix has helped them to reduce the waiting time to less than 26 seconds, as compared to Kroger where the waiting time is four minutes approximately. 

Micro Environmental Forces

Collaborators:

            The collaborators have been the associations that have been a part of the company Publix. As the case states, Publix has been entering into IT industry to serve the customers with utmost care and comfort. Therefore, it has had collaborations with local IT firms that have been offering their services to the company to ensure innovative technology and timely response to customer queries. Therefore, the management has been quite successful in integrating software to facilitate the customers more skillfully.

Competition:

            The major competitor for Publix in the United States retail market is the world’s largest retail chain Walmart. Moreover, the companies such as Wal Mart, Tesco, Target, etc. make the competition quite unbending and intense. The rivalry among competitors has been quite high which has made the firms offer economies of scale. The entrance of new firms has also been quite difficult because of the high capital investment necessary to enter the retail market.

Suppliers:

            The suppliers for Publix are quite large in number because of the retail strength of the industry. Most of the retailers offer low priced products to engage long term partnerships. Moreover, most suppliers offer similar products, which make the suppliers a generic commodity in the industry. The suppliers offer low prices and long term partnership because of the increasing competition.

Publix Super Markets, Inc. Achieving Customer Intimacy Case Solution

Regulators:

            The regulators for the company have been the government rules and regulations that have been followed by the organization since its inception. This has been a major success factor for Publix where it has kept itself from any negative or illegal activity that would hurt the trust of the customers who have been a part of the company for a long time......................

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