(R)Evolution of the E-Grocery Industry: Strategic Implications

20 Pages Posted: 19 Mar 2009 Last revised: 19 Jun 2014

See all articles by Mario Pedro Leite Ferreira

Mario Pedro Leite Ferreira

Catholic University of Portugal (UCP) - Department Economics and Finance

Date Written: March 18, 2009

Abstract

The use of the Internet in grocery retailing created the need for new business models, but it did not bring radical changes to consumer behaviour. Nevertheless, in the early days of e-grocery, most managers overestimated the power of technology and adopted revolutionary solutions. Today, after 15 years, that approach proved to be misleading, as online grocery firms are supplying small market niches with the use of traditional infrastructures and knowledge. Historical evidence from the UK and the US suggests that in an environment of high uncertainty and complexity determined by product nature, consumer switching costs, entry barriers, market mismatch and low profit margins, contingent evolutionary approaches are more appropriate.

Keywords: e-grocery, contingency, mismatch, revolution, evolution

JEL Classification: M10, M21

Suggested Citation

Leite Ferreira, Mario Pedro, (R)Evolution of the E-Grocery Industry: Strategic Implications (March 18, 2009). Available at SSRN: https://ssrn.com/abstract=1364117 or http://dx.doi.org/10.2139/ssrn.1364117

Mario Pedro Leite Ferreira (Contact Author)

Catholic University of Portugal (UCP) - Department Economics and Finance ( email )

Rua Diogo Botelho, 1327
4100-009 Porto, Porto 4169-005
Portugal
+351226196200 (Phone)
+351226196291 (Fax)