Introduction Big Basket made waves when they decided to take on the ambitious venture of digitizing grocery shopping in India. In a country like India, traditionally preferring to buy groceries from the neighbourhood ‘kirana’ store, choosing to go the completely digital route take courage, but courage is exactly what Big Basket’s founders has plenty of. But has Big Basket succeeded in its mission? In the following pages, we will take an in-depth look at their business and examine the scope of online grocery shopping in India. Key Issues India has a huge population of 1.3 billion people. Unfortunately, from massive audience, only 213 million people have access to the Internet. This is naturally growing at a rapid pace, but for the meantime …show more content…
This strategy meant that their costs would be far lower, as less investment was required to build warehouses and distribution centres. The company would forward the order to the local kirana store nearest to the customer, and the store would pack the goods and make the delivery. But because the last mile delivery was in the hand of the kirana stores, there were inconsistencies in the delivery, a crucial factor when it comes to online grocery shopping. It was for this very reason that Big Basket had its own logistics system, with trucks and delivery personnel which enabled it to delight its customers. If you had an issue with your order, Big basket could arrange for a pickup and replacement far more easily than its competitors. NATURE’S …show more content…
Godrej had originally launched Nature’s Basket as an offline only gourmet retailer, with organic and exotic produce being its speciality. But with competitors like Big Basket targeting the same segment, they have made great strides in pushing a hybrid strategy. Acquiring EkStop.com, an online grocer, and making their products available on Snapdeal.com, in addition to creating mobile apps for easy ordering, have made Nature’s Basket a formidable force in the online grocery market. It is also the only other major player to keep gourmet products, aside from Big Basket. Their hybrid strategy does indeed have some advantages over Big Basket’s pure online model, but does mean that costs are higher. However, their premium positioning may help consumers to overlook that. A parallel can be drawn here with the UK’s Tesco, which is also primarily and offline retailer, but has been successful in selling online as well, by leveraging its existing
Annual Reports and Press releases The annual reports and press releases of both companies slightly differ though with a portion of similarity. Although, Home Depot’s annual report is composed at the headquarters of giving an inclusive report on all of the retail stores in the world, through the company’s website these reports posted can be found. Therefore, this being impartial and all-inclusive to an extent of analysis it would have to be done on the contrasts, similarities, profitability, and performance of different retail stores in different regions or countries. However, the shareholders and customers analyze the summary provided to know the general performance.
The price of raw materials is high with low consumer switching cost. However, the increasing demand for healthy and organic food is creating openings for smaller competitors to enter and hide from the pricing
Introduction: Due to the ever-changing external factors, organizations face superabundant barriers when running business. Organizations have to ensure that their activities and resources suit to their goals. This report is going to identify the obstacles that UPS face through PESTEL analysis. Political: The USA is the oldest democratic country in the world.
Purpose To be an innovative grocery store by providing friendly service, clean stores, quality merchandise, and speedy check-out lanes throughout our locations. Vision To provide excellent customer service that exceeds expectations while building long-term relationships with customers.
In just a month of its establishment Amazon was selling books to all 50 states of the US and Canada. From the onset the company had ambitions of being an “everything store” (funding universe, 2004). Over the years Amazon increased its offerings to include DVDs, electronics, furniture and other consumer goods (Amazon.com, 2015). The product range increase was accompanied by a series of acquisitions. Oliva et al (2003) describes Amazon to be using a get big fast (GBF) strategy which is premised on keeping prices low while expanding market
In all Trader Joe’s is one of the leading super markets in the U.S., but after careful analysis of their operations I believe there are opportunities that are currently being ignored by the company. The company doesn’t need to act on all the recommendations that I made, however it would be in their best interest to do so. Not only would the company grow at a faster pace, but it will make strides in areas that haven’t been occupied before. Despite these current pitfalls, Trader Joe’s still is a popular option in their
Considering using more technology inside Trader Joe’s would also speed up business inside Trader Joe’s. 5 – Conclusion This paper has revealed the most powerful and weak spots of Trader Joe’s. Supermarket industry is currently alive and competition between firms are very contentious.
Diversification in raw material suppliers insures that Grandma’s will not be dependent on a single source. Grandma’s utilizes five bonded public warehouses that specialize in food and confectionery storage, selection based on: proximity to customers, ability to provide prompt customer service and efficient and economic delivery. Grandma’s takes the stress of consistency in supplying due to environmental factors off the suppliers through consciously choosing to diversify their supplier network. Grandma’s does not limit the sales of similar products produced by their manufacturer suppliers entirely, these suppliers can still sell to any nation other than the USA. This allows these manufacturer supplies leeway to make additional capital off of excess products produced.
These firms supply around 25% of retail products where as 75% is purchased from more than 2000 producers. Threat of Substitutes The products that Eataly is offering include wine, pasta, pizza and cheese being their universal product. Eataly is able to differentiate them with artisanal slogan. On the other hand ‘small size market chains’ or larger stores might supply similar or same products from and can be compete or substitute Eataly in long term through changing their structure (Carlucci & Seccia,
Therefore, we have positioned and balanced our tenants in such a way that it’s hard for online firms to replace them. For instance, we have a shopping center that has Starbucks and restaurant that are surrounding the bigger retailers such as Ross and Office Max. Therefore, we draw customers to our shopping centers where all their needs can be met which is an advantage we have over online
Multiple countries throughout the world have internet access at their fingertips and are able to find the answer to their questions instantly. “As of June 2017, 51% of the world’s population has internet access. In 2015, the International Telecommunication Union estimated about 3.2 billion people, or almost half of the world’s population, would be online by the end of the year” (Gordon). Billions of people use the Internet each and every day to research topics, check their social media, and communicate. The nation as a whole has become extremely dependent on technology to do their work and survive through the day.
A critical review of the retailer was carried out based on the external factor analysis using PESTLE (Political, Economic, Sociological, Technology, Legal and Environmental) and using Porter’s Five Forces Model of Competition to understand the correlation between suppliers, buyers, competitors within an industry, potential competitors, and alternative solutions to the problem being addressed. Background of the Company Giant was founded by the Teng family as a simple grocery store in one of the suburbs of Kuala Lumpur in 1944. Acquired by Diary Farm in 1999, Giant’s mission was to offer a wide variety of products at the lowest possible prices and closer to residential areas. Key to Giant’s growth is the ability to continuously offer value for money products and the core principles are retained even while pursuing the international brand status.
Customers typically choose what they want to buy at IKEA. Then the customer arranges to picked them up themselves at IKEA warehouse. There exists less difficulty when it comes to the transportation of goods as a results of how the packaging of goods takes place. Also customers usually assemble their purchased goods with little or no assistance from IKEA staff or third parties. Thus customers become part of the supply chain (self-delivery).
Since the beginning of the 1990’s, e-commerce has radically changed consumer behaviour by introducing new retail channels (Ngai and Gunasekaran, 2007). Serious attempts to trade online started to emerge in the mid-1990s wheninnovative, technically savvy companies responded to the opportunities and challenges posed by the internet, to develop sophisticated web sites to serve customers, in their homes (Rayport and Sviokla, 1994). The present retail environment is characterised by new, store and non- store, retailing formats, a wide range of new products, use of new information and communication technologies and consequently, the changing customer needs. Moreover, the dynamic lifestyle conditions of consumers has resulted a change in their personal environment that contributes to a profound change in customer behaviour (Schröder and Zaharia, 2008). Retailing in the 21st century means doing business with customers on their terms (Mathwicket al., 2002).
Online shopping has nowadays become a widely spread way of shopping among people on different continents and in different countries. Its popularity is constantly on the rise considering the spread of Internet technologies and the increasing share of online shops in the retailing business. Online shopping activities are gaining wide spread as far as they tend to provide the consumers with numerous benefits and increase the convenience of buying without leaving the house. The popularity of online shopping grows due to a range of reasons, including its convenience as well as time- and money-saving potential.