LeShop: A Success Story In The Online Grocery Market Harvard Case Solution & Analysis

IMD-6-0324 © 2010
Tsikriktsis, Nikos; Keller-Birrer, Valerie

LeShop, the first on-line supermarket in Switzerland, was launched at the heart of the internet boom in 1998. While many other start-up online grocery store companies did not succeed, LeShop looked to find a sustainable business model and achieved breakeven in the first quarter of 2006. Christian Wanner, its CEO, believed that the potential of the on-line grocery market was enormous and anticipated his business to continue revealing double digit growth rates for years.

LeShop A Success Story In The Online Grocery Market Case Study Solution 1

In order to capitalize on this potential, LeShop faced a number of challenges. How could it bring more customers and increase the order frequency of existing users? Could it further optimize its operations to better match consumers while keeping fulfillment prices to the absolute minimum ’ needs? Finally, what strategic choices did it have for diversification and expansion? Learning objectives: Challenges faced by grocery store retailers that are on-line, specifically strategies used for driving growth and improving profitability. Marketing strategies to drive trial and devotion. Comparison of various business models that are on-line, with specific focus on delivery and order fulfillment. Diversification and expansion strategies.

Subjects: Online supermarket; Online grocery retailing; E-commerce; E-business; Marketing; Supply chain; Growth strategies
Settings: Switzerland ; Online Grocery Retailing ; 200 employees ; 2010

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