E Commerce : Its Impact Upon Many Industry Sectors

Grocery shopping is more diversified and evolved than ever before. Individuals across the nation have access to everything from exotic products to unique delivery services. Often, specialty stores have limited locations whereas specialty services have a limited reach. However, two retailers have expanded to hundreds of locations while adhering to unexpected market positioning for previously untargeted market segments. Whole Foods Market and Trader Joe’s have become household names while also innovating beyond regional and national traditional chains. Despite comparable size in

Consumers are more mindful of how their dollar is spent, and want to obtain the best bank for their buck. With general grocery stores located in La Jolla surrounding Kudler, Kudler must find innovative ways to compete and get customers into its stores. Marketing research for competitive intelligence is importance because the local grocery stores offer differentiated options to reach new customers. For example, generic stores are beginning to offer natural and organic foods, buyer programs, cooking demonstrations and slashed prices just as Kudler does and for a fraction of the cost. One can compare this to Dunkin’ Donuts and Starbucks; some folks want the experience and that is what Kudler must do; make it an experience for the consumer and potentially bring in products they do not current stock such as beauty products, vitamins and supplements, or other common grocery store items.

Because the retail grocery market is typically low margin, “typically in the mid-single digit range”.(VALUELINE, 2013) It is critical for companies to have some type of cost advantage over peers, the larger chains may be able to obtain better and cheaper access to products than the independent stores(economies of scale). Labor is also a significant cost to retail grocers, representing 50% to 53% of total operating costs (EHOW, 2013). Other operating costs (including rent, utilities, transportation, and technology) are controllable by the company. Lastly, technology costs are key in the retail grocery industry in order to increase efficiency in operations and aid marketing aids. Point-of-sale systems can help to increase inventory turnover and sales and lead to better targeted customer marketing (COUNTERPOINTPOS, 2013)

Studying the demographics, such as education and food and cooking magazine subscriptions places stores in the right place to achieve profits (Tobak, 2010). As stated in our textbook, “Winning strategies enable a company to achieve a competitive advantage over key rivals that is long lasting” (Crafting and Executing Strategy: Concepts and Readings, 2016, p. 12). Offering excellent customer service not found anywhere else, along with their private labeled products continues to differentiate Trader Joe’s and give them a competitive advantage over their

The grocery industry is a high volume, low margin industry that is heavily competitive. It can be characterized as a fragmented mature industry. As of 2014, it is estimated that there are 37,716 supermarkets (with $2 million or more in annual sales) in the United States which make $638,338 billion in sales a year. (Food Marketing Institute, 2015) Within this industry there are a variety of retailers, ranging from specialty neighborhood markets to health food specialty markets. The following chart shows the number of different channels used by customers and what percentage of the time customers use such channels for their purchasing needs. The source of the chart is from a study conducted by the Hartman Group for the Food Marketing Institute, Retrieved from: http://www.fmi.org/docs/default-source/research/presentation.pdf?sfvrsn=0

One large thing that all companies in the grocery store industry must do is focus on meeting the needs of the new generation of buyers. The “millennials” are the future decision makers in households and they will have the disposable income and have the choice on where they want to spend their money. Baby boomers are starting to age and soon most baby boomers will be on a fixed income and will not have the choices that millennials will have. Millennials want convenience and are variety to choose from (2012). The progression of baby

The growth of online retailing is quite slow in United States of America as compare to European countries. There are very limited online services have been adopted by retailers in United States of America. The big retailers of country have given just one option to their customer is that just buy products online but pick yourself from your selected store. Such services are available on sites of Wal-Mart, Delhaize and Meijer etc. The main reason of having slow growth of online retailers is the delivery cost of groceries items and limited areas of delivery. There are two famous online retailers, Peapod and Fresh Direct. They have expanded their delivery areas. The management of Peapod is planning to provide their services of smartphones and social media sites by developing unique app. The business of online retailing can be expanded if they target young population of country who are more familiar with technology on daily basis as compare to their elders. There are five areas where Convenient Grocery Stores can bring change in online retail business.

The essay examines the impact of e-Commerce growth on business and society in general. First, it will give a definition of e-Commerce. Second, it will discuss e-Commerce in relation to The Czech Republic. Third, it will analyse the influence of e-Commerce on business and society. Lastly, Conclusions will be drawn and Recommendations made.

2010-2016: online world where e-commerce became the best choice amongst the commercial use of the internet. At that time developing E-commerce website of e-groceries. There are many types of e-groceries website such as ekshop.com, atmydoorstep.com, mygrahak.com etc.

In the US, supermarkets are the first choice for customers because they offer a large number and different kinds of things to meet the needs of the consumers. In 2014, the annual value sales of supermarkets reached US$ 365.4 billion so that they remain the top in grocery retailing channel which account for above one third of grocery retailing value market. (Euromonitor International, 2015)

Today, consumers have countless options on where to get their groceries. They can go to a traditional retailer like Kroger and Albertson’s, who are currently in the lead with $103B and $58B in revenue, go to a more specialized store like their local bakery, shop at Trader Joe’s, or increasingly turn to the internet for their grocery shopping (source). The amount of options can be overwhelming, with 38,441 supermarkets in the United States alone, supermarkets being grocery stores with sales of $2MM+ annually (source). In addition to the supermarkets, there are 212,000 traditional food stores selling $571B in retail food and nonfood products in 2011 alone (source). Architectural innovations that have allowed e-commerce to take off are also disrupting the food commerce industry as more people, specifically millennials opt to do their grocery shopping online. Today, 23% of Americans are buying good online, a number expected to reach 60% in ten years. (SOURCE IS REPORT IN GOOGLE FOLDER). U.S. online grocery sales represented $7B in sales in 2015, a number predicted to hit $100B by 2025, an upward trend that is only predicted to increase as shown in Figure B (Source).

The grocery retail industry worldwide has grown in recent years to become one of the most intensely competitive industries due to the continuous amounts of new entrants. A grocery retailer is one that sells food and other general household items. Hypermarkets, supermarkets, discounters and small grocery retailers are all under the grocery retail umbrella. Between 2003 and 2008, the grocery retailing industry accounted for 45% of store-based retail values sales over the world. The figures

E-commerce is the stores that provide service for customers via online. It sells a variety of products such as foods, drinks, and many others. It has different sectors which have many classes of businesses. For example online supermarkets are starting to grow today. Previously, have the physical stores or traditional stores but they build an e-commerce now. When e-commerce is becoming popular, they start to do it to get more profit. This essay will examine and evaluate how e-commerce has altered business practices in supermarket, including e-commerce grows very fast, profitable business and convenience for customers, enjoyable and comfortable to shop, and detail information in the e-commerce websites. It also will argue and evaluate the main tactics to increase the profit of internet trading, are convenience delivery home, having good marketing, and providing electronic transaction and good electronic assistance.

As well as major effects of financial struggle and unemployment on the retail sector, there are many other factors that have impacted the industry. As well as being cost conscious, huge advances in technology have made a permanent impact on the grocery shopping for the consumer and the retailer. We are living in one of the most exciting times in retailing history, thanks to continuous technology innovation, supported by the World Wide Web and open-source networks. Those retailers who embrace this breakthrough technology gain market acceptance and potentially leapfrog incumbent competition. The transition from locked rooms and long term plans t an open, transparent, fast-paced and more creative world also is being embraced by leading businesses. Recognizing how critical these new technology-based channels are to their success, leading-edge retailers have adopted a proactive culture, unleashing the untapped talent within their organizations and focusing on engaging with customers by using social media and mobility (Brennan 2010). Before retailers used the internet for online shopping or advertising, customers had a lot less knowledge on their products unless they went into a store and asked a sale assistant, now they are able to research products and know just as much as the shop workers themselves. Shoppers used to rely on familiarity or word of mouth to contact or find a store, due to the Internet, we are now able to mobile devices to see offers, locate and call a store

Online commerce was introduced to consumers in the mid-1990’s, and in the years since, it has grown exponentially. It started out virtually nonexistent and has become a multi-billion dollar industry. Nearly every retail sector has entered online commerce; clothing, electronics, home, health and grooming items, even food and groceries are starting to gain traction online. Online commerce sites rival traditional brick and mortar stores such as Walmart and Target, as well as other big-box stores. As online retailers such as Amazon continue to expand, many brick and mortar stores have been making their way online, indicative of an increasing movement towards online commerce. With more than 80% of the online population having made an online