QuikTrip Case Study: Operations Strategy and Value Chain

Introduction

This paper examines a case study titled QuikTrip, written by Zeynep Ton. Ton assesses the approach QuikTrip has embraced in efforts to outshine its competition and discusses the company's capabilities with regard to maintaining a large, loyal workforce. The analysis below evaluates the impact of this convenience chain's practices and operational strategies across several dimensions: operations strategy, sustainability, customer experience, the value chain, performance measurement, and service technologies.

QuikTrip's Operations Strategy

An operations strategy can be understood as the fundamental approach an enterprise takes in executing its mandate — in other words, how a company pursues its objectives. In the case of QuikTrip, the operations strategy is best understood through the lens of customer service, and more specifically, through a core-competencies strategy. According to Brown, Lamming, and Bessant (2007), a core-competencies strategy involves the deployment of systems and processes that seek to further enhance a company's capabilities, resources, and strengths. As the authors note, "a company's core competencies can include its proprietary technology, employees, financial position, market share and distribution system" (Brown, Lamming, & Bessant, 2007).

One of the major strengths QuikTrip has sought to project relates to employee development. As noted in the case study, the company's purpose statement makes clear that "QuikTrip's purpose is to provide an opportunity for employees to grow and succeed" (p. 4). In pursuing this purpose, the company works to identify individuals best suited for available roles and then equips them with the tools, resources, and capabilities to effectively execute their responsibilities. In selecting candidates, the company gives serious consideration to factors regarded as predictors of high performance. Training is aggressive and focused on the critical skills required for optimal performance. The company also works to ensure that employees are well motivated to perform effectively in their various duties — treating its workforce so well that most employees see little reason to seek employment opportunities elsewhere.

Competitive Advantage Through Sustainability

Sustainability involves conducting business in a manner that does not have a negative impact on either the community — and the larger society — or the environment (Bumford & Forrester, 2010). QuikTrip has sought to achieve this by embedding the ideals of corporate responsibility into its core values. This is particularly evident in core value 5, where employees are called upon to "do the right thing" (p. 3). Under this value, employees are expected to consider how their actions impact the company and its key stakeholders — including customers and the broader community. Partnerships are also encouraged as a means of supporting local communities.

This commitment to sustainability can serve as a source of competitive advantage, as customers are increasingly likely to do business with companies that take sustainability seriously. Likewise, qualified and skilled professionals are more likely to seek employment with organizations that demonstrate a genuine commitment on this front.

Impact of Operations Management on Customer Experience

It is clear from the case study that customer experience is significantly shaped by QuikTrip's operation management activities. From a broad perspective, the company has consistently prioritized long-term impact, even when doing so involves considerable short-term costs. For example, QuikTrip invested $12 million to renovate its bathrooms after recognizing that the move would pay off over time by attracting more customers to its stores. Customers were glad to visit QuikTrip locations knowing they could count on clean restrooms while purchasing their products of choice. Another example of accepting short-term inconvenience for long-term benefit — one that also positively influenced the customer experience — was the company's decision to remove magazines containing pornographic content and drug-related paraphernalia from its shelves. This decision helped create a more family-friendly shopping environment.

The company's establishment of resource groups has also had a positive impact on customer satisfaction. These groups provide employees with a forum to raise concerns — including those related to customer service — and to explore opportunities for improvement. As the author of the case study notes, these resource groups have been instrumental in advancing the product and process improvement agenda, further enhancing customers' perceptions of QuikTrip.

Additionally, the company's effort to adapt its processes to deliver the best possible customer service has generated positive customer experiences. This is especially evident in the drive to make customer service at its stores not only friendly but also fast. One of the company's top managers is quoted in the case study stating that "…we serve the customer faster, in a friendly and clean environment, and have the best prices" (p. 6). Customers can therefore count on convenience, time savings, and a superior shopping experience. The company has also pursued consistency across its locations — in part through the adoption of a daily activities worksheet (DAW) — ensuring that repeat customers are not confused or put off by differing processes or formats at different stores. Familiarity, in this context, is a key component of a positive customer experience.

QuikTrip faces several notable operation management challenges. One challenge relates to the cost of setting up a new store. As the case study indicates, QuikTrip's store setup costs are higher than those of its competitors, which could slow its growth and expansion — particularly if the broader economy experiences a downturn. One possible solution to this challenge is the use of cheaper fittings and fixtures, such as those built from recycled materials. Another solution would be the adoption of a minimalist approach to store design and layout.

A second challenge involves limited career advancement or promotion opportunities for employees at the store manager level. Specialist positions above this level are few in number and rarely become available. The company could address this concern by embracing job rotation, providing employees with opportunities to work in different positions or in different regions.

Conclusion

It is clear from the discussion above that the relevance of making proper and sound operational decisions cannot be overstated. In addition to offering ideal processes, QuikTrip has also managed to invest meaningfully in its employees. The company aggressively pursues a service advantage — evident in its quick service, well-maintained parking spaces and bathrooms, organized shelves, and stores that are easy to navigate. Together, these elements reflect an operations strategy that consistently prioritizes both employee well-being and customer experience as sources of lasting competitive advantage.

References

Brown, S., Lamming, R., & Bessant, J. (2007). Strategic Operations Management. Routledge.

Bumford, D., & Forrester, P. (2010). Essential Guide to Operations Management: Concepts and Case Notes. John Wiley & Sons.

Morden, T. (2021). Principles of Management. Taylor & Francis Group.