CASE STUDY

For more than half a century, Omicron Mart has prided itself on providing value to customers by being a low-price leader. But the

consumer mindset is changing.Now value also means convenience, ease of finding what you want, and the ability to get exactly what you want when you want it. Nationwide dollar-store chains often have lower prices than Omicron, so that point of competitive advantage is fading. And thanks to Amazon.com and other online retailers, consumers can shop from home whenever they like, compare prices, and know immediately what is available.

Contrast this with the experience many Omicron shoppers previously had when they entered a storelow inventory, disorganized aisles, unhelpful staff, and an overall depressing atmosphere. The

companys online presence was about the same. The site was difficult to navigate and attempts to search for products were frustrating at best and more often fruitless.

Named OMICRONs Mart CEO in 2013, Jack Kelly set out to change this. What people think about the company is important, he noted. And at the moment, people werent thinking about value and low prices when they thought about Walmart. McMillon enacted a number of changes.

First, since the company had earned a reputation of treating its store employees poorlylow wages, few benefitswhile profits were in the billions of dollars, Walmart announced it would increase its minimum wage.

Second, the company asked for and paid more attention to employee feedback. Recurring issues included the dress code, store music, and even store temperatures. So clothing rules were relaxed, more variety in music was introduced, and thermostats were adjusted. The company hopes improving employee morale will translate into a better experience for customers, thereby changing some of the negative images.

OMICRONs Mart Web presence was another target for big changes. With Amazon as the stores biggest competitor, Jack wanted to offer customers more items, pick-up options, and ways to meet their needs and demandslike an online grocery ordering service. This means a new way of thinking about marketing and inventory across the board. Jack was able to see how consumers have changed not only what they want, but also the way they want it whether from the hands of happy employees or with the simple click of a button.

The question remains: Will his actions be enough to change the way consumers see Omicron?

1. What key factors do you think prompted Omicron to change? Do they exemplify the change pressures discussed in the chapter? Why or why not?
2. What effects from OMICRONs Mart changes do you predict?
3. Describe how Jack Kelly acted as a change agent in this situation.
4. If you were Jack Kelly,what would you recommend him to do?
5. Should you be one of their loyal customer,what would you recommend them to do.