Solution to Assignment #2 Case Study #1: Grofers

Hyperlocal eCommerce is one of the most exciting places to be in. Being pioneer, Grofers will continue to have an advantage but there are some challenges as follows.

§ For Grofers, to create competitive advantage is low on current model, cabs such as Ola can deliver, stores can deliver, existing eCommerce delivery companies can deliver.

Many large eCommerce players such as Delhivery and Tradus also toying with the idea with big budget and large marketing team.

§ It is a low margin business and cost of adding new delivery staff is high. In order to be successful and to sustain, Grofers will have to work out on per-order profitability.

§ With expanding geographically, they need to ensure consistent quality in local partners and delivery staff. Investing in technology, data and processes to make their services and apps more intuitive.

The primary challenge would be the ability to build and run large scalable businesses.

§ Retail industry in India has not changed for decades. Many retailers are still sceptical of using technology, they need to be educated.

§ To have control on supply chain, Grofers would need very strong supplier partners who’s inventory it can sell.

§ App only did not work well for Myntra/FK. Most of the people have a laptop and prefer using it to do any kind of online shopping.