The literature reviews the operational and strategic analysis of E-grocery systems. There are many business models in E-grocery business. To make E-business model a sustainable one they are using different strategies in different targeted markets.
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Each individual model varies from one other in various dimensions such as placing of order, assembling and delivering the goods. The first part of the literature provides statistical description of online grocery industry in various geographical and measures. The second part provides review of the E-grocery industry’s market and its customer base. The final part offers previous studies opinions and factors about various outcomes of e-grocery business.
Over last five decades grocery business has transformed into new sector of supermarkets in UK. Many of the supermarkets changed the grocery field dramatically. These champions of consumers brought vast choices in product and price to improve their business sector. Online grocery shopping and Home delivery system has became one of major aspects in grocery industries. The revolution of technology advancement in internet promoted grocery industries to embark on new methods in retailing industry. However, many grocers have been unsuccessful to consider the advantages of how it can support grocery business. These developments lead to dismissal of complete-online supermarkets such as webvan, homegrocer, shoplink and homeruns (Ramus and Nielsen, 2005). These results demonstrate the necessity of careful crafting of e-grocery strategies which exploits internet technology’s potential of increasing company profit and also customer service (porter, 2001). On one hand, strategy conceptualisation is difficult for pure-play grocery stores since companies have not tried business models before. On the other hand, formulation of strategies for clicks and bricks grocery shops requires strategies which will combine both existing retail practice and internet based shopping processes ( Teo, 2002). Online shopping or e-grocery retailing service involves customer’s online buying behaviour and practices, order fulfilment and delivery of order, development and maintenance of online websites to facilitate customers to enter their orders (Hong and Kim, 2004). This literature provides insight of e-groceries and the strategic methods.
In United Kingdom, from centuries home delivery of goods has been taking place. During 20th century some local door to door field sales and home deliveries were go down due to rise large number of retail centres and also availability of cheap cars, however, some other home delivery business still in existence such as milk and catalogue distribution. The innovation of large consumer products such as washing machines, dishwashers, refrigerators, televisions etc results in certain type of delivery methods after mid-twentieth century. (Spufford, 1994) The recent development of information technology has contributed many new methods to retailing sector over the internet which drastically increases the demand of home deliveries. Online shopping and home delivery became an ideal path or approach in a society where people themselves believe they are cash-rich and time-poor for grocery or household goods.
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