Case Study 1: Grofers — Assignment 2
In my opinion, Grofers has to face the following challenges in future,
As Grofers grow, there might be many other startups with the same business model. Grofers will have to face a stiff competition from these new startups in future.
Competition from Big Malls
People like to buy directly from the shops. There are many people who like to go out and buy directly from shops. We are seeing an increase in the number of malls in each city, and these big malls forces the smaller and medium shops to shut down their operation, and this might lead to reduce much of the market of Grofers in future.
Competition from Big Players
The big players like Amazon, Flipkart might decide to start delivery of Grocery items in future. This will create a big impact on Grofer’s business.
As the business increases, Grofers might have to face the scalability problems. Like, they have to depend on many delivery boys to deliver the groceries on time. This might make a big dent in their profits.
The shop owners may negotiate for small commissions, this may force Grofers to run on small commission amount — this is the same case that happened with food tech startups.