E-Grocery
Practice this intermediate market entry case interview question in the Retail sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
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?
Clarifying Information
- The client serves primarily upper-middle class customers.
- Users of the Internet delivery system are typically upper-middle class.
- Home grocery shopping among Internet users is growing rapidly and the percentage of homes with Internet access is also growing.
- All three local players (including the client) have an equal market share - roughly 15%.
- The competitor without stores in the target region is gaining market share more rapidly than the company with stores in the target region.
- The company’s current distribution facilities are not adequate for the delivery system.
- The current employees cannot perform Internet delivery tasks without more training.