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Case HBS Case Collection February 2002 (Revised December 2003) H-E-B Own Brands |
H-E-B is a $9 billion grocery chain located in Southwest Texas. This case focuses on H-E-B's private label strategy, a product category that accounts for 19% of H-E-B's sales and one that earns gross margins 50% higher than national brands. A leader in its markets, H-E-B is faced with increasing competition, especially from Wal-Mart, which has aggressively entered the Texas markets with a series of "supercenters." Although the case specifically focuses on H-E-B's Own Brands (private label), it more broadly raises important strategic questions regarding H-E-B's ability to compete effectively in this new market environment. Includes color exhibits.
Keywords: Growth and Development; Market Entry and Exit; Supply Chain Management; Private Ownership; Sales; Strategy; Competitive Strategy;
Rangan, V. Kasturi, and Marie Bell. "H-E-B Own Brands." Harvard Business School Case 502-053, February 2002. (Revised December 2003.)
