Upscale Markets-Value Creation In A Mature Industry
Upscale Markets-Value Creation In A Mature Industry
January 24, 2014
Table of Contents
1. CASE OVERVIEW 3
2. DISCUSSION QUESTION ANSWERS 3
3. ALTERNATIVES ANALYSIS 5
4. CONCLUSION 5
1. CASE OVERVIEW
In this case, Blake Ives, the CEO of Upscale Markets, was at a crossroad of whether start to build an online store to seek further growing profit. Upscale Markets was a seven-store local grocery chain in Dallas, TX. Ives was inspired by the huge success of a virtual store project in subways running by Tesco named Home Plus in Korea. They showed the products visually by using monitor in subways and allowed people purchased items and got delivered by simply using their phone to scan the QR code under the item. Ives gave a call to his friend who was enjoyed online grocery shopping for a few years named Cantera. Cantera gave Ives many advantages through his experience on Rice Epicurean. Camtera said that he save a lot of time on grocery shopping and finally get rid of this burden. Rice Epicurean had two ways for online customers to get their purchased products. Based on the system provide by MWG, they could prepare the in store pick-up and home delivery. Benefited form the on-line shopping system, many grocery stores gain huge profit and earn lots of market share. MWG could easily implement this whole system within two weeks to forty-five days according to the situation of the specific store. However, even though online shopping would bring customer increase and purchase increasing pre customer, still, there would be potential risk on implement on-line shopping system. For example, how to fit the tastes of customer of foods to gain customer satisfaction? How to dealing with the additional request of customer whether it is reasonable or not? Moreover, facing on the dot-com meltdown of 2000-2001, many giant online shopping
January 24, 2014
Table of Contents
1. CASE OVERVIEW 3
2. DISCUSSION QUESTION ANSWERS 3
3. ALTERNATIVES ANALYSIS 5
4. CONCLUSION 5
1. CASE OVERVIEW
In this case, Blake Ives, the CEO of Upscale Markets, was at a crossroad of whether start to build an online store to seek further growing profit. Upscale Markets was a seven-store local grocery chain in Dallas, TX. Ives was inspired by the huge success of a virtual store project in subways running by Tesco named Home Plus in Korea. They showed the products visually by using monitor in subways and allowed people purchased items and got delivered by simply using their phone to scan the QR code under the item. Ives gave a call to his friend who was enjoyed online grocery shopping for a few years named Cantera. Cantera gave Ives many advantages through his experience on Rice Epicurean. Camtera said that he save a lot of time on grocery shopping and finally get rid of this burden. Rice Epicurean had two ways for online customers to get their purchased products. Based on the system provide by MWG, they could prepare the in store pick-up and home delivery. Benefited form the on-line shopping system, many grocery stores gain huge profit and earn lots of market share. MWG could easily implement this whole system within two weeks to forty-five days according to the situation of the specific store. However, even though online shopping would bring customer increase and purchase increasing pre customer, still, there would be potential risk on implement on-line shopping system. For example, how to fit the tastes of customer of foods to gain customer satisfaction? How to dealing with the additional request of customer whether it is reasonable or not? Moreover, facing on the dot-com meltdown of 2000-2001, many giant online shopping