The company has a vertical supply chain consisting of manufacturing units, packaging and processing units, procurement units and distribution centers. All these units are integrated and managed by the latest technological devices. The major areas where Morrison operates are Netherlands and UK. Headquarter of the company is located at Bradford, UK. Shopping has gone virtual. Out of the total sales made at the supermarket, e-commerce accounts for 1.2 of the sales (Rhodes, 2013). Even though the number is small, it is constantly increasing. Packaged goods like groceries and daily products are increasingly purchased in an online format.
Around 12 percent of internet users have reported that they use online sites for grocery purchasing (Europe Commission, 2013). And this number is constantly increasing. Thus launching the company’ s presence in the online media will be a strategic step at it will help the company gain market share through online presence. Purchase through online grocery sites is more profound in the case of working couples. It was also found out that these customers did not mind paying extra while online grocery shopping because of the convenience (Hiser et al, 1999).
It is very evident from the current social environment that more and the number of people are opting for working partner. This decreases the time for traditional cooking as well as purchasing fresh groceries from traditional supermarkets. Launching an online shopping website will be a strategic move for developing sustainable growth for the company. Since the company has already a huge base of the supermarket chain, it does not need to shift its entire operations into online food retailing. Especially products like Fresh food and vegetables can be kept in the traditional format.
This is because these are essentially perishable goods and needs to be delivered in just in time process. This makes the purchase of fresh groceries difficult through online shopping. The customer can focus on food products such as dry fruits and other food products with a life span of minimum 3-4 days.
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