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Solved HBR Case Solution: Grocery Gateway (Download Now)

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Description

Solution Pages: 6

Files that you will download:

Word (.docx) & Excel (.xlsx)

Question Covered in Solution

1. Provide your own recommendations that may or may not align with Dominique’s options at the end of the case. Your recommendations should be supported by analyses and be consistent with the overall strategy.

2. Provide brief implications of ‘your’ recommendations for cost, quality, dependability, flexibility and speed.

Sample of Solution

Scenario Description:

Grocery gateway had been providing online grocery items since 1997 and became the canada’s greatest online grocer in 2001, with almost 0.125 Million registered users. Grocery gateway had been serving a large chuck of population from the largest urban center of Canada. The cycle of its sales was seasonal hence its sales were reduced to one half of its peak sales, in the Summer time. As per the company executives the company’s core competency was to provide the high quality products while keeping the cost of operations to its minimum level.

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1. Provide your own recommendations that may or may not align with Dominique’s options at the end of the case. Your recommendations should be supported by analyses and be consistent with the overall strategy.

As per the Dominique’s observation he had 3 alternative which he had to evaluate to get the most efficient and effective way of improving the delivery operations. The most applicable alternative is to increase the delivery cost per order. This can be executed by increasing the threshold of making an order, which would encourage the customers to make high volume orders and hence increasing the average dollar value of orders. But this implication can also have an adverse effect on the sales of the products, as most of the buyers react adversely to the increasing prices. Hence with this connotation the company would have earned greater losses than the profits along with reduced brand loyalty. Furthermore, company’s core competency is to keep the costs lower for its customers, so increasing the price would have a sudden impact on grocery gateway’s brand image.

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