Case Solution & Analysis for Grofers: Re-Energizing Kirana Stores through M-Commerce by Reema Khurana, Susmi Routray.
Complete Case details are given below :
Case Name : Grofers: Re-Energizing Kirana Stores through M-Commerce
Authors : Reema Khurana, Susmi Routray
Source : Ivey Publishing
Case ID : 9B16M120 / W16446
Discipline : General Management
Case Length : 09 pages
Plagiarism : NO (100% Original work)
Description for case is given below :
In 2014, the food and grocery industry in India experienced a surge in the online grocery market. Before that time, existing e-business players had largely avoided the online grocery market because of its complex logistics requirements and issues related to last-mile delivery, or reaching customers in remote areas. The rise of online grocery businesses raised concerns for brick-and-mortar stores, especially local kirana stores (corner stores), about becoming redundant in the future. With limited or no technology adoption, these kirana stores had no way of going online. Grofers came to the rescue of these local stores with a mobile commerce (m-commerce) model for groceries that promised on-demand delivery within 90 minutes. However, with very low margins in the grocery business compared to lifestyle products, in addition to last-mile delivery and returns complexities, it remained to be seen whether Grofers would be able to carve out a niche in the grocery industry with its innovative model. Considering the low entry barriers and the easily replicable business model, how viable and sustainable was an m-commerce business like Grofers?
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