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Shil Patel
1030330
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Pro)essor J( *ee+
INTRODUCTION
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2/24/22, 11:04 AM Case Gco | PDF | Grocery Store | Point Of Sale
,he ins'iration )or Gro-ery Che-.out /n-+ GC2 egan at ,he 4ni5ersity o)
6estern ntario as a se-on7#year usiness 'ro8e-t+ /t was )oun7e7 y a grou' o)
Related titles usiness stu7ents in 00"+ 9athan Fel7er( CE an7 -o#)oun7er( was instrumental in the
)ormation an7 initial su--ess o) the -om'any+ ,he -om'any -atere7 to -onsumer gro-ery
nee7s at the -li-. o) a utton 'ro5i7ing its -ustomers 'rimarily stu7ents at the uni5ersity2
the aility to sho' online an7 ha5e their gro-eries 7eli5ere7 to their 7oorste's+ /n 00"
*on7on( ntario was use7 as a test mar.et to 7etermine i) the 5enture ha7 the 'otential to
e oth stea7y an7 su--ess)ul+ /nitial su--ess ultimately le7 to the -om'any eing
in-or'orate7 an7 in nearly & months ha5ing &00 -ustomers an7 generating o5er 300(000
in sales Janssen( 0112+ Gro-ery Che-.out )o-uses on ;uality an7 5alue( an7 su--ess was
a--om'anie7 y ex-ellent relations with lo-al su''liers as well as 7istriutors o) )resh
'ro7u-e( ut-hers( an7 other lo-al gro-ery stores+ A stea7y in-rease in sales saw sales
Labor Market MyLabsPlus
)igures o5er 1 millionBasics of an7 y 00%
in 00& Joshua Smith aseBallistics
a -ustomer ACTIVIDA
o) a''roximately 3("00
Profile (Hudson… Janssen(
Instructions
0112+ Hardware Resume Final ECONÓM
,he online gro-ery in7ustry in whi-h Gro-ery Che-.out /n- o'erates although
'art o) a large growing e#-ommer-e se-tor( ha7 7e-line7 y & 'er-ent in re-ent years
Janssen( 0112+ 9one theYou're
less theReading a Preview
mar.et is there as -ustomers who 'ur-hase their
gro-eries online s'en7 00 more an7 ha5e annual in-omes o) a''roximately !(000
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higher than those that 7o your documents
not Janssen( toe5i7ent
0112+ /t is download.
that the a7o'tion o) online
gro-ery sho''ing ha7 een slow in Cana7a( ut in re-ent years online tren7s seeme7 to e
OR )or 010 still remaine7 un-ertain+
in )a5our o) online sho''ing+ <et( the out-ome
Become
,his re'ort will a Scribd
'ro5i7e insightmember for full
into Gro-ery access./n-(
Che-.out Your through oth internal
first 30 days are free.
an7 external analysis+ 6e will ex'lore Fel7er=s o'tions an7 weigh in on the ene)its an7
-osts o) 7i))erent alternati5es+ /n 7oing so we will e ale to 7etermine whi-h o'tions est
)it the -om'any as well as how Fel7er himsel) will e im'a-te7+
Continue for Free
KEY ISSUES
9athan Fel7er is )a-e7 with se5eral issues that are 5ital to the )uture o) Gro-ery
Che-.out /n-+ ,hese .ey issues are essential to the )uture growth o) the -om'any an7
must e a77resse7 so that a rational 7e-ision -an e ma7e going )orwar7+ Some o) the
issues Gro-ery Che-.out /n- an7 9athan are )a-e7 with are:
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2/24/22, 11:04 AM Case Gco | PDF | Grocery Store | Point Of Sale
• 6oul7 the intro7u-tion o) a moile a''li-ation -hange sales signi)i-antly>
• Base7 on the nee7s o) in5estors an7 9athan( woul7 selling Gro-ery Che-.out
/n- e ene)i-ial>
• Shoul7 9athan Fel7er sim'ly ha5e Gro-ery Che-.out remain on its -urrent 'ath
Labor Market MyLabsPlus Basicsan7
o) stea7y growth of ignore theJoshua Smith
'ressure )rom his Ballistics ACTIVIDA
in5estors> 6hy -hange
Profile (Hudson… Instructions Hardware
something that isn=t ro.en Resume Final ECONÓM
,hese issues Gro-ery Che-.out is )a-e7 with ring aout more ;uestions )or
9athan su-h as was this the time to -onsi7er a new ex'ansion> An7 was Gro-ery
Che-.out rea7y to ta.e on You're Reading
this ris.+ Althougha)a-e7
Preview
with numerous issues-on-erns
7etermining the est o'tion )or Gro-ery Che-.out /n- was a 7e-ision that nee7e7 to e
ma7e ;ui-.ly to ensure Upload your documents
su--ess instea7 o) )ailure+ to download.
ANALYSIS OR
VALUE: As a 'rior stu7ent at ,he 4ni5ersity o) 6estern ntario Fel7er -reate7 Gro-ery
Che-.out /n- 7ue to his own 7issatis)a-tion with sho''ing )or gro-eries+ GC was ale
to a77 5alue to -onsumers y turning what most -onsi7ere7 in-on5enient at times &02
into a -on5enient ser5i-e almost all o) the time+ GC was ale to a7a't to its -onsumers
nee7s( hen-e stu7ents who were unale to 7ri5e to a gro-ery store or -onsumers who )in7
it 7i))i-ult to get to a gro-ery store+ ,he -om'any 7oes o))er something o) 5alue as it has
the aility to -reate a 'ro)it an7 meet a mar.et 7eman7+
RARITY: GC is rare in a sense as it is only a5ailale in the *on7on( ntario area+ ,he
-om'any only -aters to the nee7s o) -onsumers within a s'e-i)i- range o) the uni5ersity+
/t -an e argue7 that -om'etitors 'ro5i7e the same 'ro7u-ts so it is not really rare+ n the
other han7 one -an argue that its rarity -omes in the )orm o) time sa5ing an7 -on5in-e as
tra7itional gro-ery stores 7o not o))er the -li-. Ho)#a#utton@ 7eli5ery o'tion+
,em'orarily GC is the only gro-er 'ro5i7ing 7eli5ery o'tions within the *on7on area+
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2/24/22, 11:04 AM Case Gco | PDF | Grocery Store | Point Of Sale
*olaws an7 Dalu#Mart will im'lement a similar online gro-ery sho''ing ex'erien-e+
Iue to the sie o) these -om'anies they will ha5e greater mar.eting u7gets to ex'loit
there ser5i-es than that o) Fel7er+ ,he -ase also goes on to gi5e one the exam'le o)
*ongo=s a-;uisition o) Gro-ery Gateway( whi-h rings aout the 'ossiility o) a
-om'etitor a-;uiring an estalishe7 online gro-ery store )rom a 7i))erent region+ n the
other han7 im'ro5e7 7istriution networ.s( or7er )ul)illment systems( or -onsumer
loyalty may 7i))erentiate an7 ma.e it 7i))i-ult )or -om'eting -om'anies to satis)y
'otential -onsumers the way that GC 7oes+ /n a77ition( )or other -om'anies to -o'y
what GC is 7oing it woul7 re;uire a lot o) -a'ital in5estment in 7eli5ery 5ans( 7ri5ers(
sho''ers( et-+ ,his -oul7 ultimately in-rease -osts )or these -om'anies an7 ma.e them
less 'ro)itale without the right 7eli5ery systems or in5entory 'ro-e7ures 8ust to name a
Labor Market MyLabsPlus Basics of Joshua Smith Ballistics ACTIVIDA
)ew+ *astly( GC 7oes not hol7 any 'atents or legal reme7ies )or -om'anies
Profile (Hudson… Instructions Hardware Resume Final ECONÓM
im'lementing a similar te-hnologi-al system or usiness i7ea+
Threat of New Entrants: ,he online gro-ery in7ustry was 'rimarily -ontrolle7 y a )ew
-om'etitors+ *u-.ily )or Gro-ery Che-.out /n- they are the only online 7eli5ery gro-er in
the *on7on area+ ,here -om'etitors are )ran-hise gro-ers lo-ate7 -loset to the 6estern
-am'us+ / 'ersonally see the threat o) new entrants as high+ /) we thin. a-. a )ew years
ago ma8ority o) these large retail gro-ers ha5e e-ome one sto' sho's+ /) you wal. into a
6al#mart you -an sim'ly 7o your gro-eries( uy -lothes( loo. at ele-troni-s( et-+ /) 6al#
mart or a -om'any li.e this was to intro7u-e an online sho''ing gro-er as well as these
other items it woul7 sim'ly ha5e a greater a75antage than Gro-ery Che-.out /n-+ 6ith
the rise in te-hnology it almost )eel ine5itale that gro-ery stores will a7a't to -om'ete
te-hnologi-ally online y -utting -osts an7 sa5ing time+ ,here are 5irtually no arriers to
a -om'etitor or new usiness when entering this mar.et as they woul7 e ale to 'ro5i7e
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