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Competitive assessment models
Final Project Execution
1. INTRODUCTION.
Online groceryshoppingisexpectedtogrow five-foldoverthe nextdecade.Nielsenfound
that 25% of consumerssurveyedboughtgroceriesonlinefromtime totime and50% saidthey
wantedtodo so soon. Newgenerationsbetweenthe agesof 18 and 30 are drivingthe
transitionfromphysical retail toonlinegrocerysales.Atleastaquarterof respondents
reportedonthe use of online supermarketsinavarietyof ways,includingorderinggroceries
online fordelivery,in-storepickup,aswell asusingasubscriptionmodelwherebythe
productstheyfrequentlyuse are automaticallyreorderedbasedonatime setting.
Thisprojectwill be carriedoutaround the businessof sellingsupermarketproductsonline
withdifferentdeliverymethods,due tothe potential thatthisbusinesshasinthe coming
yearsfor one of my clientsforwhomI performaconsultingservice.
Many major retailersare pushingonline grocerydeliveryservices.Animportantpartof their
efforthasbeenbasedononline orderswithcustomerpickupin-store.Itisa low-riskandless
expensive methodof enteringthe marketforestablishedretailers.However,there isa
significantdemandforhome delivery,especiallyindenseurbanareaswhere consumershave
little time and/orrelyonpublictransportation,makingitdifficulttobuygroceries.
While growthisrampantin thissector,lessthanone percent of total foodpurchasesinmy
countryare made online.Inthe UnitedStates,thatnumberisslightlyover3 percent andin
the UnitedKingdom4 percent.Despite the increase innumbers,the opportunityforgrowthis
enormous.The keyelementsof consumeradoptionare advertising,convenience,andwordof
mouth.Customerloyaltyresultsfromefficiencyof delivery,productqualityandcost
competitiveness.
2. IDENTIFICATION OF THE MEGA TREND THAT IMPACTS THE COMPANY.
 One of the mainmegatrendsthatimpactthisbusinessisthe HYPERCONNECTIVITYin
whichwe live withall the technologyatourservice where we notonlyinteract
permanentlywithcomputersandcell phones,butalsowithall kindsof digital elements
connectedtothe networkwiththe internetof thingsinourrefrigerator,caretc.This
allowsusto make the bestuse of our time andbe able to make the decisiontobuyour
supermarketitemsanytime,anywhereandusinganytechnological item.
 Anotherof the megatrendsthatthisbusinessmustconsiderisTHE HEALTHY LIFESTYLE
and ENJOYMENT WITH QUALITY TIME: As all sectorsof societypointtoa healthierlife
withconsumersmore aware of the value of familytime andwithfriendsandclose
people.Thiswillinfluence the consumptionpatternsthatwill undergochangesinthe
waytheybuy and the assortmentof productstheywill choose.Eachof the products
offeredmustbe sufficientlydocumentedsothatthe consumerlearnsaboutits
sustainable andenvironmentallyfriendlyproductionandthe caloricandnutritional
contentsthattheyprovide sothat an increasinglyhealth-consciousconsumermakeshis
decision.
 Everytime there are buyerswithlittle time,whoworkfull time andevenlate. Theyare
buyerswhomake theirpurchase decisiononlineif the deliveryisfastandtheirorderis
completelycorrect,andtheywill remainloyal tothe brand.
3. USE OF MODELS TO ASSESS THE AREAS OF THE COMPANY.
3.1 SWOT ANALYSIS (FODA)
1. Strengths
 There is a good technological development and a good degree of automation for order
processing.
 For the logistics of distribution has its own fleet
 You have suppliers that respond quickly to resupply orders.
2. Weaknesses
 It does not make very good use of trucks and there areopportunities in the planning of
delivery routes, because it does not consider the problems in dense urban areas with
permanent construction works, unexpected traffic jams, limited delivery areas and
variable walking distance to be able to make the delivery.
 Delivery times are getting longer and longer as drivers must check a random sample of
orders to ensure the quality of the packaging, ensure temperature in the refrigerated
compartment, digitally scan containers and temperature with their phone app, call
customers before delivery and follow routing systems during driving that include both
route and unload information.
 Upon arrival at your destination, you mustlookforpermitted parking, unload the
delivery well (loading the bags with a rolling platform), ensure the receipt of the delivery
by the customer and reconcile the delivery with the system.
3. Opportunities
 Complement the own fleet con flexible contracts of urban deliveries to meet the high
peaks of demand.
 Use of disruptive technologies such as drones for deliveries and a network of
fulfillment centers in Dark Stores
 Leverageacquired investments and know-how to expand to other regions
4. Threats
 Given the multiple activities that the driver must perform, deliveries are increasing,
which can lead to loss of customers.
 There are more and more competitors who capture a radius of attention to their
customers by dispatching from existing stores and achieve safe delivery times.
3.2 ANALYSIS OF THE 5 FORCES OF PORTER
1. Rivalry between existing competitors: big chains like Walmart or Grupo Éxito in my
country, their specialty really is delivering orders online in the store. They are not noted for
their ability to do direct home delivery. That is where our business wants to differentiate
itself from these big players, as well as taking advantageof the fact that this market is
growing significantly. In other words, there are many opportunities for different players.
2. Threat of new incoming players: This has a lot to do with the credibility and ability of the
brand to get the right staff, as well as the ability to create economies of scale. For this the
business must clearly establish its market share to achieve these advantages and be faithful
to its operating model to createa sustainable advantage, since the entry of new players is a
reality.
3. The third force is the ease of substitution: It is a reality that our business must take careof
very clearly, because the ease that the consumer must replace us by buying in the physical
store in the convenience store is very easy. For this reason, the reasons that make a loyal
customer must be pursued with operational excellence: Meet delivery times and exact
orders.
4. The fourth force is therelative power of suppliers: The suppliers who supply the products
have a high level of power, because if they do not supply the replenishment of inventories,
we will not comply with the customers. It then becomes a strategicaspect to work together
with suppliers to ensure the supply especially of high turnover products.
5. The fifth force is therelative power of customers: Thecustomer is king. Customers are
powerful because they are many and with their demands, different competitors will also
want to serve them on issues such as the cost of changing ites is really low, delivery times
increasingly demanding, with low shipping costs, and that means that a customer does not
need to be loyal to a particular company. Therefore, if a company wants to maintain the
loyalty of its customers, it must make sure that it meets the delivery time and that its
orders are totally correct.
4. DESCRIPTION OF THE DISRUPTIVE TECHNOLOGY THAT WILLHELP THE BUSINESS.
The future of last mile delivery to meet the challenge of delivering on time and correct deliveries
has disruptive technologies such as:
1. Deliveries through guided drones automatically to reach the home of customers: This
technology is already a reality especially for deliveries in remote cities with low weight orders,
but in urban deliveries in Latin America are not a very viable option and especially for food.
2. Autonomous vehicles: thanks to 5G technology this is already a reality for now in more
controlled environments where trucks reach certain parking points and then arevehicles /
refrigerator that move through the path of pedestrians to make the delivery, instead of the
driver having to do it.
3. Planning of the routes in real time considering all the possible urban obstacles and optimizing
the routes. Already with the available technologies of digital mapping, geolocation, 5G,
artificial intelligence and machine learning it is possible to achieve high percentages of
compliance with delivery times.
4. Online platforms to work with local contractors where artificial intelligence systems assign
loads and orders to one or another contractor depending on many variables that make it
optimal such as their location, qualification of previous deliveries and the cost of course. Thus,
synchronizing the means of transport with the enlistment in time for collection.
1. BARRIERS OR RESISTANCES TO THE ADOPTION OF TECHNOLOGY
Two of the available breakthrough technologies that we would plan to use in our business are then
technology platforms that provide us with intelligent route planning in real time and that allow us
to be connected in real time with our different transportation contractors to coordinate and
achieve deliveries on time.
The main barrier that is presented to us is that the teamis not properly trained to understand why
the instructions of this technology should be followed and not what everyone believes is the best.
You need people with clearly digital skills who follow the technology and do not make other kinds
of decisions.
This must be approached from a culture of DigitalTransformation and understanding of change,
where there is a clear identification of all about the threats and opportunities that our business has
in the market and because we must differentiate ourselves from the competition. Of course, the
implementation of the technology must be done with the involvement of the entire team from the
beginning to make its implementation and adoption a success.

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Competitive assessment models final project

  • 1. Competitive assessment models Final Project Execution 1. INTRODUCTION. Online groceryshoppingisexpectedtogrow five-foldoverthe nextdecade.Nielsenfound that 25% of consumerssurveyedboughtgroceriesonlinefromtime totime and50% saidthey wantedtodo so soon. Newgenerationsbetweenthe agesof 18 and 30 are drivingthe transitionfromphysical retail toonlinegrocerysales.Atleastaquarterof respondents reportedonthe use of online supermarketsinavarietyof ways,includingorderinggroceries online fordelivery,in-storepickup,aswell asusingasubscriptionmodelwherebythe productstheyfrequentlyuse are automaticallyreorderedbasedonatime setting. Thisprojectwill be carriedoutaround the businessof sellingsupermarketproductsonline withdifferentdeliverymethods,due tothe potential thatthisbusinesshasinthe coming yearsfor one of my clientsforwhomI performaconsultingservice. Many major retailersare pushingonline grocerydeliveryservices.Animportantpartof their efforthasbeenbasedononline orderswithcustomerpickupin-store.Itisa low-riskandless expensive methodof enteringthe marketforestablishedretailers.However,there isa significantdemandforhome delivery,especiallyindenseurbanareaswhere consumershave little time and/orrelyonpublictransportation,makingitdifficulttobuygroceries. While growthisrampantin thissector,lessthanone percent of total foodpurchasesinmy countryare made online.Inthe UnitedStates,thatnumberisslightlyover3 percent andin the UnitedKingdom4 percent.Despite the increase innumbers,the opportunityforgrowthis enormous.The keyelementsof consumeradoptionare advertising,convenience,andwordof mouth.Customerloyaltyresultsfromefficiencyof delivery,productqualityandcost competitiveness. 2. IDENTIFICATION OF THE MEGA TREND THAT IMPACTS THE COMPANY.  One of the mainmegatrendsthatimpactthisbusinessisthe HYPERCONNECTIVITYin whichwe live withall the technologyatourservice where we notonlyinteract permanentlywithcomputersandcell phones,butalsowithall kindsof digital elements connectedtothe networkwiththe internetof thingsinourrefrigerator,caretc.This
  • 2. allowsusto make the bestuse of our time andbe able to make the decisiontobuyour supermarketitemsanytime,anywhereandusinganytechnological item.  Anotherof the megatrendsthatthisbusinessmustconsiderisTHE HEALTHY LIFESTYLE and ENJOYMENT WITH QUALITY TIME: As all sectorsof societypointtoa healthierlife withconsumersmore aware of the value of familytime andwithfriendsandclose people.Thiswillinfluence the consumptionpatternsthatwill undergochangesinthe waytheybuy and the assortmentof productstheywill choose.Eachof the products offeredmustbe sufficientlydocumentedsothatthe consumerlearnsaboutits sustainable andenvironmentallyfriendlyproductionandthe caloricandnutritional contentsthattheyprovide sothat an increasinglyhealth-consciousconsumermakeshis decision.  Everytime there are buyerswithlittle time,whoworkfull time andevenlate. Theyare buyerswhomake theirpurchase decisiononlineif the deliveryisfastandtheirorderis completelycorrect,andtheywill remainloyal tothe brand. 3. USE OF MODELS TO ASSESS THE AREAS OF THE COMPANY. 3.1 SWOT ANALYSIS (FODA) 1. Strengths  There is a good technological development and a good degree of automation for order processing.  For the logistics of distribution has its own fleet  You have suppliers that respond quickly to resupply orders. 2. Weaknesses  It does not make very good use of trucks and there areopportunities in the planning of delivery routes, because it does not consider the problems in dense urban areas with permanent construction works, unexpected traffic jams, limited delivery areas and variable walking distance to be able to make the delivery.  Delivery times are getting longer and longer as drivers must check a random sample of orders to ensure the quality of the packaging, ensure temperature in the refrigerated compartment, digitally scan containers and temperature with their phone app, call customers before delivery and follow routing systems during driving that include both route and unload information.
  • 3.  Upon arrival at your destination, you mustlookforpermitted parking, unload the delivery well (loading the bags with a rolling platform), ensure the receipt of the delivery by the customer and reconcile the delivery with the system. 3. Opportunities  Complement the own fleet con flexible contracts of urban deliveries to meet the high peaks of demand.  Use of disruptive technologies such as drones for deliveries and a network of fulfillment centers in Dark Stores  Leverageacquired investments and know-how to expand to other regions 4. Threats  Given the multiple activities that the driver must perform, deliveries are increasing, which can lead to loss of customers.  There are more and more competitors who capture a radius of attention to their customers by dispatching from existing stores and achieve safe delivery times. 3.2 ANALYSIS OF THE 5 FORCES OF PORTER 1. Rivalry between existing competitors: big chains like Walmart or Grupo Éxito in my country, their specialty really is delivering orders online in the store. They are not noted for their ability to do direct home delivery. That is where our business wants to differentiate itself from these big players, as well as taking advantageof the fact that this market is growing significantly. In other words, there are many opportunities for different players. 2. Threat of new incoming players: This has a lot to do with the credibility and ability of the brand to get the right staff, as well as the ability to create economies of scale. For this the business must clearly establish its market share to achieve these advantages and be faithful to its operating model to createa sustainable advantage, since the entry of new players is a reality. 3. The third force is the ease of substitution: It is a reality that our business must take careof very clearly, because the ease that the consumer must replace us by buying in the physical store in the convenience store is very easy. For this reason, the reasons that make a loyal customer must be pursued with operational excellence: Meet delivery times and exact orders. 4. The fourth force is therelative power of suppliers: The suppliers who supply the products have a high level of power, because if they do not supply the replenishment of inventories, we will not comply with the customers. It then becomes a strategicaspect to work together with suppliers to ensure the supply especially of high turnover products. 5. The fifth force is therelative power of customers: Thecustomer is king. Customers are powerful because they are many and with their demands, different competitors will also want to serve them on issues such as the cost of changing ites is really low, delivery times increasingly demanding, with low shipping costs, and that means that a customer does not
  • 4. need to be loyal to a particular company. Therefore, if a company wants to maintain the loyalty of its customers, it must make sure that it meets the delivery time and that its orders are totally correct. 4. DESCRIPTION OF THE DISRUPTIVE TECHNOLOGY THAT WILLHELP THE BUSINESS. The future of last mile delivery to meet the challenge of delivering on time and correct deliveries has disruptive technologies such as: 1. Deliveries through guided drones automatically to reach the home of customers: This technology is already a reality especially for deliveries in remote cities with low weight orders, but in urban deliveries in Latin America are not a very viable option and especially for food. 2. Autonomous vehicles: thanks to 5G technology this is already a reality for now in more controlled environments where trucks reach certain parking points and then arevehicles / refrigerator that move through the path of pedestrians to make the delivery, instead of the driver having to do it. 3. Planning of the routes in real time considering all the possible urban obstacles and optimizing the routes. Already with the available technologies of digital mapping, geolocation, 5G, artificial intelligence and machine learning it is possible to achieve high percentages of compliance with delivery times. 4. Online platforms to work with local contractors where artificial intelligence systems assign loads and orders to one or another contractor depending on many variables that make it optimal such as their location, qualification of previous deliveries and the cost of course. Thus, synchronizing the means of transport with the enlistment in time for collection. 1. BARRIERS OR RESISTANCES TO THE ADOPTION OF TECHNOLOGY Two of the available breakthrough technologies that we would plan to use in our business are then technology platforms that provide us with intelligent route planning in real time and that allow us to be connected in real time with our different transportation contractors to coordinate and achieve deliveries on time. The main barrier that is presented to us is that the teamis not properly trained to understand why the instructions of this technology should be followed and not what everyone believes is the best. You need people with clearly digital skills who follow the technology and do not make other kinds of decisions. This must be approached from a culture of DigitalTransformation and understanding of change, where there is a clear identification of all about the threats and opportunities that our business has
  • 5. in the market and because we must differentiate ourselves from the competition. Of course, the implementation of the technology must be done with the involvement of the entire team from the beginning to make its implementation and adoption a success.