Amazon's KiranaNow: The Indian Online Grocery Market

Description

In 2015, the Indian retail industry contributed around 10 per cent to India’s gross domestic product, and online retail had a growth rate of 85 per cent. In the same year, food and grocery made up 60 per cent of the Indian retail market, and the online grocery segment was estimated at US$600,000. To capture its share of this market, Amazon India launched its own online grocery arm, KiranaNow, with a marketplace model. As it set out to carve out a space for itself in the online grocery market, KiranaNow faced challenges related to merchandising, managing human resources, customer perceptions, and technology hurdles, including the question of whether its chosen business model was sustainable. The company needed to overcome these challenges to find success in the Indian online grocery market.

Learning Objective

This case focuses on the business model adopted by Amazon’s KiranaNow for Indian consumers, taking into account the various market forces. The case is framed around the strategic management and marketing management perspectives of the Indian online grocery market. It uses both the political, economic, social, technological, environmental, and legal (PESTEL) framework and Porter’s “five forces” analysis to evaluate this market, and covers the following major areas: ·Industry analysis ·Competitive positioning ·Evolution of business models, and the pros and cons of the different models ·Increasing competition and implications for consumers ·Appreciating the sustainability of chosen business models

Keywords

E-Commerce e-retail online grocery PESTLE Sustainability