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E-Commerce

The client is a grocery store chain that is considering whether or not they should enter the emerging Internet-based grocery shopping/delivery market in the Boston area. This regional chain is currently one of the leaders in the traditional grocery store market in northern New England. In their core market, two competitors have emerged in the Internet/at-home grocery shopping business, and are rapidly gaining market share. One of the companies that has already entered this new marketplace is the client's primary competitor in the traditional market. The second player is a chain that does not have grocery stores in the target region, but has entered the Boston area with Internet shopping delivery services. Should the client enter the market? If so, how, and what concerns should they have? If not, how do they protect market share from the emerging market that is threatening to steal business?


Brief Case Detail

Client Name Power cart

Location 002 Boston, USA

Started Jan 13, 2019 Power cart

Completed Apr 30, 2019

Value INR 1,850,000

Category Business Solutions

High Level Plan of Attack

  • The client must first do some preliminary work examining the market for groceries delivered over the Internet. I would like to get a better sense for the company's current customers, as well as potential customers, to see if the Internet is a viable delivery mechanism for the company
Lay - Out Your Thoughts
  • Use the Profitability Framework. Lay out factors that you feel would help from the Value Chain analysis, 4Cs, and 4Ps.

  • Identifying the clients target customers in the area.
  • Elloborating the growth of the market.
  • Explaining the present market share.
  • Addressing recent growth trends in the market.
  • Are the distribution facilities adequate for the delivery system.
  • How about the company's employees? Are they sufficiently trained to handle delivery tasks associated with the Internet?
When the company rolls out its Internet operations, it must not disappoint customers. Many of the Internet-based customers will be cannibalized from the traditional operations. In itself, this is not bad. These customers obviously prefer the alternative, and it's better for the company to retain them versus losing them to competitors. However, failure to deliver on Internet delivery will cause customers to consider switching to the competition. As such, the company must be sure it can effectively deliver on its promises from the moment it enters the Internet market.

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