Supporting Hypermarket Chain Leadership with Data Management Tools in Competition Strategy Implementation
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Doctoral thesis (article-based)
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.
Authors
Date
2022
Major/Subject
Mcode
Degree programme
Language
en
Pages
46 + app. 52
Series
Aalto University publication series DOCTORAL THESES, 37/2022
Abstract
This dissertation describes the decision support methods and operating models used in the development process of the S Group's Prisma hypermarket chain in Finland in 1990-94. Fierce competition forced management to look for new business ideas, tools and methods that would provide a clear competitive advantage for the rapidly growing chain. In order to find new perspectives, it was decided to use statistical approaches and various Decision Support System options. For the research and analysis, a large database was compiled, including data on purchasing behaviour, Key Performance Indicators (KPIs), customer and product records. The main focus of the development was to identify and profile customers, how they behave and to find new innovative ways to meet their expectations. In addition to Descriptive Analysis and Multivariate Statistical Methods, the development project also generated new ways of looking at chain performance, both from the perspective of a single unit and the chain as a whole. An Ordinal Principal Component Analysis method was developed for intra-chain benchmarking and used for multicriteria ranking between units (Article 1), a Data Envelopment Analysis method was used to assess efficiency, extended with the concept of Value Efficiency Analysis (Article 2), and a Decision Support System was developed for strategy work to provide perspectives for scenario building and monitoring (Article 3). The immediate contribution of DSS modelling to decision making came from its ability to provide Decision Makers with sensible, better solution options to support their decision making. The final impact of decisions could be assessed over a longer period of time, which in the case of the Prisma development project results meant several comparable financial years and eventually decades. Finland suffered exceptionally badly from the financial crisis and the global economic downturn in 2008-2009. The Prisma chain has survived the periods and crises described above without any loss-making years, and the whole chain has grown from 16 units in 1992 to 68 units in 2020.Description
Defence is held on 1.4.2022 15:00 – 18:00
Zoom: https://aalto.zoom.us/j/68628970796
Supervising professor
Kuula, Markku, Prof., Aalto University, Department of Information and Service Management, FinlandThesis advisor
Korhonen, Pekka, Prof. Emeritus, Aalto University, FinlandWallenius, Jyrki, Prof. Emeritus, Aalto University, Finland
Keywords
customer analysis, decision support system, multiple objective linear programming, performance improvement, retail, hypermarket, multivariate analysis, shopping basket analysis
Other note
Parts
-
[Publication 1]: Korhonen, P. and Siljamäki, A. (1998): "Ordinal Principal Component Analysis: Theory and an Application", Computational Statistics & Data Analysis, Vol. 26, pp. 411-424.
DOI: 10.1016/S0167-9473(97)00038-8 View at publisher
- [Publication 2]: Korhonen, P., Siljamäki, A., and Soismaa, M. (2002): “On the Use of Value Efficiency Analysis and Further Developments”, Journal of Productivity Analysis, Vol. 17, N:o 1/2, pp. 49-64
-
[Publication 3]: Siljamäki, A., (2021): “A Decision Support Approach to Achieve Competitive Advantage for a Hypermarket chain”, Journal of Business Economics.
Full text in Acris/Aaltodoc: http://urn.fi/URN:NBN:fi:aalto-2021123111095DOI: 10.1007/s11573-021-01065-6 View at publisher