The Real Case Of It Makes Cents
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The Real Case of IT Makes Cents
Back Ground Company
99 Cents only Stores is Americas oldest chain of one-price stores. The chain consists of 220 stores in California, Nevada, Arizona, and Texas. The business was started as single store in Los Angeles in 1984. David Gold stepped down as the companys CEO, remains active as the Chairman of the Board. And his two sons and son- in-law run the company. The Gold family owns about 35% of the company
Strategic
– Low price product.
– Measure in retail industry: sale per square foot and profit margin on revenue.
– The competitor focuses on low to high income and this company too, but this company. observe that rich people is like to save. Therefore this company opens new stores in Beverly hill for new group of customer for low competitors.
– Purchase products a big lot for low price.
– Business intelligence company integrates technology into it operation and priority IT project by how much obvious return on investment.
The legacy system in the company
They use 15 fellow pickers are used to the electronic voice. It is generated by a computer that runs the distribution centers warehouse-management software. It instructs them which items to pick for individual stores. And the process do by voice and wireless (WLAN, cell phone ,walkie-talkies)
The company is never lost the money, between 1996 – 2003 when it went public the stock price climbed from $3.12 to $36.22 and now in US is a many “fixed-price store” it mean competition is fierce , In 2003 sales revenues of $862.5 million , spending on IT only $5 million , In 2004 profit was slightly less $836 million but still on IT spending was small.
The problem of the existing system
It is difficult for these chains to reorder the same items at the same low price. And the company wants to avoiding overstocks or under stocks.
The problem for improve the chain
Adams