Leshop.com: financial and marketing analysis

Résumé du document

LeShop.ch is the first online grocery retailer in Switzerland. It has been on the market since 1998. Until the end of 2003, its majority shareholder was the Bon appétit Group with 33% of the shares. This major Swiss wholesaler, decided in December 2002 to close down it's business. However, by a solidarity movement, LeShop.ch has been saved by a group of private investors. In September 2003, the first online grocery store, created an exclusive partnership with Migros, the largest supermarket chain in Switzerland. Nowadays, this partnership allows LeShop.ch to offer more than 12,000 products online and has an average of 2000 purchases per day. In addition, LeShop.ch offers not only grocery products, but a wide range of non-food products such as wellness products, home entertainment, perfumery, toys, flowers, cigarettes, wines and spirits, jewelry, Do it +Garden, electronics, and sports equipment. This assignment has two distinctive parts. The first part will provide information and analysis of the e-grocers industry and LeShop.ch itself. In the second part, we will emphasize our analysis in creating new customer service for LeShop.ch such as the implementation of a standing order system, enhancing their website with web 2.0 and creating new applications for customers. Finally, after having made our recommendations, we will draw conclusions on how to improve customer satisfaction and services.

Extraits

[...] Moreover there is an international development of grocery stores so LeShop.ch can increase sales and revenues with market penetration. Outsourcing and off shoring activities can be a possibility as well to reduce costs. In addition the actual trend to spend more time for leisure and less time on household activities is beneficial for LeShop.ch Threats The threat of LeShop.ch is its strong dependence on its website. Any technical problem or even a hacking-virus can have tremendous effects on the company that might lead to a drop in sales and revenues. [...]

[...] In 2008 Tesco Compare was launched. This site allows registered customers to compare prices and polices of different car insurances. Over 800,000 people have visited this site in search for the best insurance. Another service Tesco offers Tescodiets.com, providing 40,000 users with a wide range of dietary plans designed by Tesco's team of nutritionists. Other Tesco services are Tesco Personal Finance, Tesco Dental Insurance, Tesco Finest Health Insurance, Tesco Telecoms and Tesco Mobile.[4] Porter's 5 forces ►Power of Suppliers: dependence from Migros and its suppliers' partnerships like LaPoste Von Bergen SA or Eismann Tiefkühlservice; entrants: open market, any company can go in this market, there no special legislation, all you need are development of suppliers' relations, a website and a logistic facility, more and more companies are using the commerce to sell their products. [...]

[...] With the help of their clients Tesco.com is participating in a greener future of their customers have chosen to take part in the bag-less deliveries and have reduced their overall single-bag use by over one billion of just one year. Tesco.com is also operating in Ireland and South Korea. They are serving over 70% of Ireland and have over 200,000 customers. In South Korea they have over 580,000 registered customers and have doubled their product availability form last year to nearly 14,200 products. Tesco offers many services as well. [...]

[...] Another threat is that the trend for e-commerce will attract more competitors so there is a risk of losing market share. Also other changes in the business environment such as the current economic crisis could have an effect on the sales. Other consequences for LeShop.ch, for instance an increaseof the oil's price could affects negatively the company because the delivery of products by car gets more expensive and can leads to a loss of customers. Facts and Figures Business model Customers According to a survey conducted by the Consumer Direct Cooperative in 2000[8], the following groups of potential customers have been designated: Shopping avoider Necessity users (disabled and elderly people New technologists Time starved consumers Le Shop.ch is targeting mainly the last group from the above and more particularly young families and working mothers. [...]

[...] It has been on the market since 1998. Until the end of 2003, its majority shareholder was Bon appétit Group with 33% of the shares This major Swiss wholesaler, decided in December 2002 to close down the business. However, fallowing a solidarity movement, LeShop.ch has been saved by a group of private investors. In September 2003, the first online grocery store, created an exclusive partnership with Migros, the largest supermarket chain in Switzerland. Nowadays, this partnership allows LeShop.ch to offer more than 12'000 products online and has an average of2000 purchases per day[1]. [...]