Premium Essay

Online Supermarkets

In: Business and Management

Submitted By winitsui
Words 10246
Pages 41
Online Supermarkets: Emerging Strategies And Business Models In The UK
Irene Yousept, Feng Li
University of Newcastle upon Tyne Business School, United Kingdom Irene.Yousept@ncl.ac.uk, Feng.Li@nc,.ac.uk

Abstract
The Internet has facilitated the emergence of new strategies and business models in several industries. In the UK, significant changes are happening in supermarket retailing with the introduction of online shopping, especially in terms of channel development and coordination, business scope redefinition, the development of fulfilment centre model and core processes, new ways of customer value creation, and online partnerships. In fact the role of online supermarket itself has undergone some significant changes in the last few years. Based on recent empirical evidence gathered in the UK, this paper will illustrate current developments in the strategies and business models of online supermarket retailing. The main evidence has been collected through an online survey of 6 online supermarkets and in-depth case studies of two leading players. Some of the tendencies are comparable to what happened in retail banking with the introduction of Internet banking, but other tendencies are unique to the supermarket retailing industry. This is a rapidly evolving area and further studies are clearly needed.

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Introduction

The Internet has facilitated the emergence of new business models in several industries. Previous research has revealed that the integrated models of retail banking have been challenged in the last few years, typified by the deconstruction of the integrated banking models and processes (Yousept, Nyotoprabowo and Li, 2002; Li, 2001; Seitz and Stickel, 1998). Many similar changes are happening in supermarket retailing with the rapid growth of online home shopping services. Changes in terms of channel development and coordination,…...

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