Competitive Market Place for SAB Case Study Paper.
1. Why and how has the competitive market place for SAB changed in the last five to
seven years?
2. What advantages might Central experience in the proposed new venture?
3. What issues would SAB and Central face in the proposed new approach?Competitive Market Place for SAB Case Study Paper.
Central Transport, Inc.
Jamie C orman, t he n ew p resident a nd CEO o f Central Transport, recently m et with
Susan Weber, t he current president and CEO o f SAB Distribution. Jaime was promoted
from CM O at Central Transport t o CEO. Her predecessor h ad worked closely w ith t he
former CEO of SAB Distribution when SAB had transformed its operations about 10 years
earlier to respond to changes in i ts competitive marketplace. Now, Ms. Weber was faced
with new challenges and again needed the collaboration of Jaime and Central Transport to
meet some new challenges.
Susan has met extensively with the members of her executive team to develop a tentative
plan for modifying the strategic direction of SAB and thwart the buyout of the company by a private investment firm.
Susan was convinced t hat SAB could attract additional retailers in t he m id-Atlantic
states if it added to and improved its logistics services, namely, warehousing, transportation
delivery, and inventory management. However, Susan felt that she needed a major collaborator with experience in these areas. She also felt that it would be better if the collaborator
was a company SAB had worked with previously on a successful basis and was willing to take on some new challenges. Competitive Market Place for SAB Case Study Paper.
Susan had decided to approach Wegman’s Food Markets, Inc. as a customer for these
new services. Wegman’s was a very successful company in the Northeast that was privately
owned and had expanded carefully into new market areas over the last 15 years. It offered
more value services to its customers, including an in-store bakery, a restaurant and deli,
more take-out options, and in-store cooking demonstrations.
Wegman’s primary distribution point for their stores was located in a distribution park
in Rochester, New York near their corporate headquarters. With their store expansion into
the Washington, D.C. area and points further south into Virginia, they are developing a
new distribution park in northwestern Pennsylvania to lower their cost and improve their
service. Wegman’s was feeling the pressure to be more price competitive with Walmart and
other food chains but also wanted to maintain their unique value added in store services
for customers.
Susan was also convinced that Wegman’s could be price competitive and to continue to
increase their in-store services and expand their market opportunities. She felt that they
would listen t o h er proposal t o offer expanded services t o help t heir company b e m ore
competitive. Now, she wanted Central to join with SAB in making Wegman’s a proposal.
Jaime needs your help in developing a response to Susan.Competitive Market Place for SAB Case Study Paper.