Differentiation strategy : how to create a competitive advantage in online groceries
Lok, Ka Heng (2017)
Lok, Ka Heng
Lahden ammattikorkeakoulu
2017
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201705026010
https://urn.fi/URN:NBN:fi:amk-201705026010
Tiivistelmä
Since the beginning of e-commerce, digital selling of commodities is becoming more common and accessible to every consumer. It is possible to order any grocery item on the Internet. A successful company in online groceries requires a strategy that could make it stand out from its competitors. That is the aim of the thesis; to create a competitive advantage in online groceries by using a differentiation strategy.
The study focuses on analysing the external factors: the macro environment, the consumers, and the competitors. To exploit the macro environment, the PESTEL analysis was used. Market segmentation was needed to conclude the consumers’ behaviour. Porter’s Five Forces model and the SWOT analysis were applied to find the success factors of the competitors. The theoretical part of the study will cover these topics by relying on secondary data from online publications and literature.
The next part of the thesis is the empirical study. A quantitative and deductive approach was chosen by drafting an online questionnaire. The questions are based on the found opportunities from the three external factors. Concrete and reliable conclusions were made after analysing the primary data by using SPSS Statistics.
A new strategy is formulated based on the reliable and valid findings from the theoretical analyses and the empirical study. It is based on the model of the strategic management process and the differentiation strategy from Porter’s four generic competitive strategies. It proves that analysing the external factors provides online grocers viable opportunities in differentiating in the current Finnish market. The strategy prioritises the operations of the online grocer, acknowledging the expectations and needs of consumers as a means of gaining advantage over competitors. Finally, it answers the research questions.
The study focuses on analysing the external factors: the macro environment, the consumers, and the competitors. To exploit the macro environment, the PESTEL analysis was used. Market segmentation was needed to conclude the consumers’ behaviour. Porter’s Five Forces model and the SWOT analysis were applied to find the success factors of the competitors. The theoretical part of the study will cover these topics by relying on secondary data from online publications and literature.
The next part of the thesis is the empirical study. A quantitative and deductive approach was chosen by drafting an online questionnaire. The questions are based on the found opportunities from the three external factors. Concrete and reliable conclusions were made after analysing the primary data by using SPSS Statistics.
A new strategy is formulated based on the reliable and valid findings from the theoretical analyses and the empirical study. It is based on the model of the strategic management process and the differentiation strategy from Porter’s four generic competitive strategies. It proves that analysing the external factors provides online grocers viable opportunities in differentiating in the current Finnish market. The strategy prioritises the operations of the online grocer, acknowledging the expectations and needs of consumers as a means of gaining advantage over competitors. Finally, it answers the research questions.