This case tests the candidate's ability to conduct structured market analysis and develop actionable recommendations despite organizational constraints. The candidate effectively balances market opportunity assessment with operational feasibility analysis, recognizing that market attractiveness alone is insufficient without addressing distribution, systems, and talent gaps. The key learning emphasizes that market entry decisions require evaluating both market dynamics and internal capabilities.
The client is a grocery store chain that is considering whether or not they should enter the emerging Internet-based grocery shopping/delivery market in the Boston area. This regional chain is currently one of the leaders in the traditional grocery store market in northern New England.
In their core market, two competitors have emerged in the Internet/at-home grocery shopping business, and are rapidly gaining market share. One of the companies that has already entered this new marketplace is the client’s primary competitor in the traditional market. The second player is a chain that does not have grocery stores in the target region, but has entered the Boston area with Internet shopping delivery services.
Should the client enter the market? If so, how, and what concerns should they have? If not, how do they protect market share from the emerging market that is threatening to steal business?