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Creating competitive (dis)advantage: learning from Food Lion's freefall

Article Abstract:

The debacle suffered by Food Lion Inc is analyzed with the intention of discovering the reasons for its strategic errors. Food Lion was established in 1957 by three former Winn-Dixie employees. In 1967, the grocery store chain was able to increase its sales by 50% by instituting a lowest cost pricing strategy and as a result, its sales and net income grew by 22% for the next nine years. By 1992 however, ABC's PrimeTime Live news reported on its unsanitary food handling practices and violations of labor laws. It is concluded that the firm's competitive advantage brought about by its cost culture and strict control systems was not sustainable and, in fact, caused the firm's downfall.

Author: Dess, Gregory G., Picken, Joseph C.
Publisher: Academy of Management
Publication Name: The Academy of Management Executive
Subject: Business, general
ISSN: 0896-3789
Year: 1999
Grocery Stores, Supermarkets and Other Grocery (except Convenience) Stores, Analysis, Management, Grocery industry, Business failures, Food Lion L.L.C., FDLNA

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High tech, high impact: creating Canada's competitive advantage through technology alliances

Article Abstract:

Canada is experiencing a surge in alliance activity in its high technology industries. These alliances are characterized by a variety of agreements in which two or more companies agree to pool their resources to advance specific market opportunities and concerns. These also include two or more firms entering into functional deals designed to promote cooperation in manufacturing, distribution, marketing, and research and development.

Author: Cyr, Dianne
Publisher: Academy of Management
Publication Name: The Academy of Management Executive
Subject: Business, general
ISSN: 0896-3789
Year: 1999
Canada, High technology industry, Joint ventures, Alliances, Alliances (Government relations)

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