Peapod’s Case Study Essay

Problems/Issues Getting Faced

• The company was growing slower than anticipated

• It was faced with installation losses

• The company was reportedly taking a loss in five of the marketplaces it served • It can partner-based business structure entailed way too high a cost composition for the company to achieve rewarding growth

Crucial Success Elements of the On the net Grocery Organization

• Online revenue must fully secure to take care of customer commitment • Firms must shoot for lower cost of goods being sold • Ample marketing skills and methods – Good brand name -- Favourable reputation and graphic • Competitive and appealing pricing

• Companies must maximize the usage of website pertaining to customer satisfaction • Website must be easy to use and pleasant to think about

• Wide product range – an attractive line up of products to select from, with greater profit margins • Good customer service

SWOT Analysis


• Forces with buyers and advertising promoters

• Partnerships with supermarkets

• It was the largest Internet supermarket, with over 90000 customers spread over 8 markets • Peapod's order size was about 5 fold the in-store average of supermarkets and convenience stores • Just-in-time inventory system

• It presented a variety of goods

• On-line tracking and customer details base

• The Web site was easy to understand and had a variety of highly efficient features • Customers could shop for things in several techniques

• Romance with consumers

• Its use of centralized inventory facilities and just-in-time deliveries via suppliers Disadvantages

• Order volume hadn't reached levels that allowed Peapod's stockroom and order fulfilment procedure to realize level economies • Declining inventory prices

• Order fulfilment costs were too high of any percentage of revenues • Shortage of capital

• Installation losses

• The company was depleting the cash reserves to pay the adverse cash flow by current...

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