A Study of the E-Commerce Grocery Basket Business in Sweden

The Internet has become increasingly important in our daily life. Both companies and individuals are urging to exploit it and Internet channels are widely used (Kumar et al., 2012). Websites and applications are rapidly growing into sophisticated channels with the most amazing designs.
Traditional companies with physical stores cannot afford not to join this huge and increasingly important Internet-based market called e-commerce. Manufacturers have even turned to the Internet as a direct channel of distribution. This trend can be seen all over the world today. Traditional industries such as the grocery industry (for example Wal-Mart and Tesco) has entered the e-commerce business and web-based enterprises (for example eBay and Amazon) have exploded and are already huge.

These two kinds of companies are known as brick-and-clicks and pure-players. Brick-and-clicks are companies that have a physical channel e.g. a physical store and an online channel to reach customers. Pure-players are companies that only have an online channel to reach customers.

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Accordingly, a new business in the Swedish e-commerce market has arisen; home-delivered pre-packed groceries with recipes, from now on referred as the “grocery basket” business. In this 21st century with the Internet as its platform for ordering groceries, the business is rapidly growing.

As they are reforming such a traditional industry, as the grocery industry, into entering the online business this, of course, comes with many challenges. Not least such a simple task of providing groceries to customers without a physical store. However, the phenomenon of delivering groceries directly home to customers has been tried many times, for example as early as in 1929 (Kämäräinen et al., 2001; Senauer, 2001).

Source: mba.final-year-projects.in

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