Question

Read the case study entitled "Online Grocers: The First Frontier for Peapod; the Final Frontier for Amazon" on pages 213 - 214, then answer the following:

1. How did Peapod's strategy differ from Webvan's? What made Peapod more successful?
2. Do you expect Amazon to succeed in its one-stop strategy? Will Peapod survive? What will each company's market share look like five years from now? Explain your answer.

Answer 1

How did Peapod’s strategy differ from Webvan’s? What made Peapod more successful?

Technique that Peapod's use far more down to earth than the methodology of Webvan. Webvan turned out to be excessively goal-oriented and spent an excessive amount of cash on their activity too soon. This made them gets precarious monetarily soon. Then again, the Peapod began at a littler scale and didn't spend capital sooner than it was required. They extended gradually and made accomplices at various dimensions to grow to various districts. This made the tasks significantly more solid for them just as the neighborhood network. They depended on manual work for more often than not, and that made their tasks practical. Peapod concentrated more on achieving the objective market than growing their specialized capacities. They extended their system as indicated by the interest, and in the development, they kept the spending limit negligible they helped them in enduring monetarily. They concocted numerous imaginative thoughts for their activities, not at all like Webvan who ran with the ordinary method for extension. Peapod propelled their site at the correct point, and they at last thought of a portable application on which they are continually attempting to improve.

Do you expect Amazon to succeed in its one-stop strategy? Will Peapod survive? What will each company’s market share look like five years from now?

Amazon has a great job in E-commerce business. With its deep pocket, lots of resources at disposal, the relevant experience and the will to lower the price for greater market share really makes it’s the ideal candidate to rule the market. The success of Amazon has greater prospects than any other player in the market. However, its success in lieu of having no other competitor in the market or be in a monopolistic position is an entirely different games and include a great deal of market variable to comprehend. However, the company have the potential to do in case it want to pursue that strategy which is not its priority right now.

Survival of Peapod is highly dependent on its outlook in the next coming years. One of the reasons for its successful survival in the market is its ability to keep a closer look to its competitor i.e. making sure it stays up to date with the trends of the market but still contained themselves to the best of their potential. They didn’t overdo anything that is beyond their capacity and their strategy of expansion since the day of their inception has been very careful. The strategic process of Peapod makes them to compete giants like Amazon & Walmart. Their success is their ability to find the sweet spot in the market where they can play safe for a relative period of time. However, the need is to improvise with out-of-the-box strategy that ensures greater exploration of other sweat spots in the market or try to make a strategy that ensures organic growth to them and make them highly competitive in their sweet spot.