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Dairy Farm Group: Redesign of Business Systems and Processes
In 1997, retail sales begain to slump for the Dairy Farm Group of Companies (DFG), a major food retailer based in Hong Kong with operations in many major cities in Asia Pacific. The Asian economic crisis of 1997 was one cause. However, another major cause was increasing competition from aggressive European and U.S. retail chains that were preparing to gain a foothold in the growing Asian market. DFG realized that to combat competition and retain its dominant position in Asia Pacific, it had to change its business strategy from that of "buying and selling" to "sensing and responding." The case investigates DFG's existing business systems and processes and looks at the possibilities of gaining competitive advantage, either by acquiring state of the art systems and technical infrastructure or through radical redesign of its critical business processes supported by technology.