Peapod provides online food market shopping in eight pipe atomic number 18as in US. Its online shopping website is backed by a powerful distri notwithstandinger network consisting of tie-ups with topical anesthetic move outlets and recently its own dispersal warehouses. Members pay order and liin truth fees for home deli real. The company faces a financial crunch and is rise huge losses scorn its step-up due to very high order fulfillment personifys. Its chief competitors are local grocers who sell at a firster rate than Peapod, and some other upcoming online grocers like netgrocer.com, homegrocer, webvan, etc. Retail food grocery Industry Analysis The US sell grocery wariness is $700bil. including groceries, wellness and beauty items and beverages. Intense toll competition has use up to trade consolidation. No single player holds more than 10% market share. Supermarkets average 15 to 20% ROI by low cost direct purchases and sophisticated cost-effective sup ply manacles and are an established brand. Entry to online grocery retailing by alive players was viewed as either: a) Â Â Â Â Â Â Â Â Cannibalizing its own local brick-and-mortar stores OR b) Â Â Â Â Â Â Â Â Additional sales channel The industry is exceedingly price sensitive. Presently the industry growth has slowed down to 3.4% due to subscriber line moving to wholesale clubs and medicate stores. The Online Grocery Segment essentially its not a new emerging industry but an emerging sales channel for the grocery industry.
The online grocery constituent seeks to sell groceries to the Internet savvy consumer online. Its a highly emulous industry in its infancy. M! arket research predicts a very high growth rate for this industry. This disintermediation and self serve up model decreases the costs of setting up large retail outlets at various locations. The software and equipment costs in 99 by Peapod are 3,500 out of the total operating costs of 102,000 indicating solo approx. 3.5% of the operating costs went in maintaining the website. Thus the... If you want to be intimate a full essay, order it on our website:
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