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Case study
Publication date: 5 September 2022

William Makumbe and Cuthbert Tsikira

The learning outcomes of this study are as follows: 1) identifying challenges confronting small businesses in emerging markets using the SWOT framework; 2) the application of the…

Abstract

Learning outcomes

The learning outcomes of this study are as follows: 1) identifying challenges confronting small businesses in emerging markets using the SWOT framework; 2) the application of the Porter’s five forces model in analysing industry dynamics for small businesses; and 3) evaluating business expansion decisions using the force field analysis framework.

Case overview/synopsis

Freshood Express Store was a convenience store owned and managed by Mr Cuthbert Tsikira. Freshood Express Store operated grocery convenience stores in partnership with a government-owned fuel retailer in Zimbabwe. It operated two grocery convenience stores in Harare and Bindura. Its business environment was a complex and highly competitive industry with large retailers such as OK supermarkets and TM-Pick n Pay. These large retailers enjoyed massive discounts from powerful suppliers, which enabled them to charge low prices in the market. However, Freshood Express Store, as a small business, sourced their stock from the same suppliers on a cash basis. The playing field was thus uneven. In early 2021, Freshood Express Store was offered two sites to open new establishments. These two sites were more than 200 km out of Harare, the major supplier hub for Freshood Express. In addition, large retailers had existing operations in the two proposed sites, thus adding serious competition. The dilemma confronting Mr Tsikira was as follows: Could he direct limited resources to existing establishments or new markets? He wanted a sound business analysis of the attractiveness of the proposed two markets before making a management decision to invest resources. The case focuses on the need to perform industry analysis before making strategic decisions. The use of the Porter’s five forces model and the force field analysis model to validate decisions after an industry analysis is the high point of the case.

Complexity academic level

This case study can be used to teach the environmental analysis topic in emerging markets in the small business management course.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 11: Strategy.

Details

Emerald Emerging Markets Case Studies, vol. 12 no. 3
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 1 July 1997

Michelle A. Morganosky

Examines the cross‐shopping patterns of 300 US consumers for five different grocery formats including conventional supermarkets, supercentres, warehouse clubs, convenience stores

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Abstract

Examines the cross‐shopping patterns of 300 US consumers for five different grocery formats including conventional supermarkets, supercentres, warehouse clubs, convenience stores and limited line discount stores. The extent to which each channel extracts customers from every other channel is assessed and analysed in light of continuing structural change in grocery retailing. As a fairly new retail format in the US market, supercentres have moved quickly in attracting customers from each of the other formats. Discusses major players in the supercentre phenomenon in light of these changing market conditions.

Details

International Journal of Retail & Distribution Management, vol. 25 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 May 2001

Outi Uusitalo

Grocery retailers are operating in a slow‐growth market. The pursuit of market share is one of the main concerns for retail managers. The retail structure is becoming increasingly…

8190

Abstract

Grocery retailers are operating in a slow‐growth market. The pursuit of market share is one of the main concerns for retail managers. The retail structure is becoming increasingly standardized and homogenous because of concentration of the ownership of stores. Cultural differences remain, however, between different European countries. Cultural factors influence the success of a positioning strategy. This study examined how consumers perceive grocery retail formats and brands in Finland. Data from personal interviews were used in highlighting the consumer perspective. Consumers perceive meaningful differences in various store formats, meanwhile store brands are seen as quite similar. Consumers rely on functional attributes of stores when discussing grocery stores. However, it seems that consumers are unable to recognize the fabricated, often imaginary differences at the brand level. The informant’s own, creative symbolic work results in this case to interpreting all grocery retail brands as similar. Managerial implications of the study are presented.

Details

International Journal of Retail & Distribution Management, vol. 29 no. 5
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 13 November 2020

John Maisch, Mihai Nica and Jeremy David Oller

This study aims to examine whether the introduction of wine or regular strength beer (B) sales in Tennessee grocery stores significantly increased the number of alcoholic…

Abstract

Purpose

This study aims to examine whether the introduction of wine or regular strength beer (B) sales in Tennessee grocery stores significantly increased the number of alcoholic beverages (AB) consumed or excise taxes collected in the state.

Design/methodology/approach

This study uses both a time series and a model-based approach to assess if a significant change in alcoholic beverage excise tax collections occurred after the natural experiment. The study evaluates monthly tax collections from B, mixed drinks and AB between January 1968 and September 2018 published by the Tennessee Department of Revenue.

Findings

The findings suggest that neither alcoholic beverage consumption nor excise taxes collected increased substantially in Tennessee as a result of the introduction of wine and regular strength B in grocery stores. It is likely, however, that some changes inside the industry were significant.

Originality/value

This study assists policymakers and analysts in determining whether allowing the sale of wine and regular strength B in grocery stores will have a substantial impact on the total amount of AB consumed or excise taxes collected by the jurisdiction.

Article
Publication date: 16 February 2010

Maxwell K. Hsu, Yinghua Huang and Scott Swanson

The purpose of this paper is to study the interrelationships among grocery store image, travel distance (TD), customer satisfaction, and behavioral intentions (BI) in a college…

6684

Abstract

Purpose

The purpose of this paper is to study the interrelationships among grocery store image, travel distance (TD), customer satisfaction, and behavioral intentions (BI) in a college town setting.

Design/methodology/approach

Surveys are given to undergraduate college student grocery shoppers in a Midwest college town. The 400 usable questionnaires are randomly divided into two parts: one subsample was used for exploratory factor analysis while the other (larger) subsample was used for confirmatory factor analysis and subsequently the structural path analysis.

Findings

Grocery store image is identified as a second‐order construct reflected by the three key components of merchandise attributes (MEA), store ambience and service (SAS), and marketing attractiveness (MGA). Although store image is an important driver of BI, its indirect effect through customer satisfaction is found to be substantially greater than its direct effect on BI. Interestingly, TD is positively related to satisfaction, which highlights the possibility for retailers to overcome the distance disadvantage.

Originality/value

As few studies have attempted to characterize the US grocery market in terms of the reasons for their choice, this exploratory study is unique because it investigates grocery shopping behavior in a traditional American college town. Specifically, the distinctive market factors (e.g. the relative scarcity of grocery retailers, their distance from campus, and the mix of grocer types in or around the Midwest college town) add value and contribute to the retailing literature.

Details

International Journal of Retail & Distribution Management, vol. 38 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 12 September 2016

Junfeng Jiao, Anne Vernez Moudon and Adam Drewnowski

The purpose of this paper is to ascertain how elements of the built environment may or may not influence the frequency of grocery shopping.

Abstract

Purpose

The purpose of this paper is to ascertain how elements of the built environment may or may not influence the frequency of grocery shopping.

Design/methodology/approach

Using data from the 2009 Seattle Obesity Study, the research investigated the effect of the urban built environment on grocery shopping travel frequency in the Seattle-King County area. Binary and ordered logit models served to estimate the impact of individual characteristics and built environments on grocery shopping travel frequency.

Findings

The results showed that the respondents’ attitude towards food, travel mode, and the network distance between homes and stores exerted the strongest influence on the travel frequency while urban form variables only had a modest influence. The study showed that frequent shoppers were more likely to use alternative transportation modes and shopped closer to their homes and infrequent shoppers tended to drive longer distances to their stores and spent more time and money per visit.

Practical implications

This research has implications for urban planners and policy makers as well as grocery retailers, as the seemingly disparate groups both have an interest in food shopping frequency.

Originality/value

Few studies in the planning or retail literature investigate the influence of the urban built environment and the insights from the planning field. This study uses GIS and a planning framework to provide information that is relevant for grocery retailers and those invested in food distribution.

Details

International Journal of Retail & Distribution Management, vol. 44 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 29 January 2021

Stephen Clark, Nick Hood and Mark Birkin

This study aims to measure the association between local retail grocery provision and private residential rental prices in England. Renting is an important sector of the housing…

Abstract

Purpose

This study aims to measure the association between local retail grocery provision and private residential rental prices in England. Renting is an important sector of the housing market in England and local grocery provision is an important aspect of service provision and consumers are known to be highly sensitive to the branding of this type of retailing.

Design/methodology/approach

This research uses a novel data source from a property rental Web platform to estimate a hedonic model for the rental market. These models incorporate information on the nature of the properties and their neighbourhoods, with an emphasis on how different retail brands are associated with rental prices. This retail brand is captured on two scales: the provision of local branded convenience stores and the provision of larger stores.

Findings

The study finds clear differentials in how the local grocery brand is associated with rental prices. When controlling for commonly explored confounding factors, “Luxury” retailers such as Waitrose and Marks and Spencer are associated with higher rental prices, while “Discounter” retailers are associated with lower rental prices. This finding has many implications, particularly in relation to potential price changes in an already challenging housing market for many people.

Research limitations/implications

This is an observational study and as such only associations (not causation) can be implied by these findings.

Originality/value

The focus of this research is on the private residential property market, an important market in England but one that has enjoyed less scrutiny than the sales or socially rented markets. Rather than using general accessibility to retail, this research has differentiated the association by the retail brand and store size, two very important aspects of consumer choice.

Details

International Journal of Housing Markets and Analysis, vol. 14 no. 4
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 13 November 2017

Mohammad Iranmanesh, KrishnaSwamy Jayaraman, Suhaiza Zailani and Seyed Mohammadreza Ghadiri

The purpose of this paper is to investigate the effects of consumers’ perceptions towards volume discount (VD) benefits on their intention to purchase grocery products under this…

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Abstract

Purpose

The purpose of this paper is to investigate the effects of consumers’ perceptions towards volume discount (VD) benefits on their intention to purchase grocery products under this scheme using deal proneness as a moderator.

Design/methodology/approach

Data were gathered through a survey of 583 Malaysian consumers, and were analysed using the partial least squares technique.

Findings

The results showed that perceived savings, self-expression value, and convenience positively affected consumers’ intention to purchase grocery products under VDs. Deal proneness negatively moderated the relationship between perceived quality, innovation, and consumers’ intention to purchase under VDs.

Practical implications

The findings of the study will help retailers to understand the effects of consumers’ perceptions of VD benefits on their intention to purchase products under VDs, thereby allowing retailers to promote products under VDs more effectively.

Originality/value

Although the VD is a common type of sales promotion, this topic is rarely explored. This study thus contributes to the advancement of knowledge by determining the effects of the potential benefits of VDs on consumers’ intention to purchase.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 29 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 8 April 2014

Hayiel Hino

The aim of this paper is to address intertype cross-shopping behavior – that is, the behavior that characterizes consumers who divide their grocery shopping between two or more…

2512

Abstract

Purpose

The aim of this paper is to address intertype cross-shopping behavior – that is, the behavior that characterizes consumers who divide their grocery shopping between two or more different food formats. In particular, the study attempts to shed light on the cross-shopping phenomenon by employing a new research approach that examines format-selective use. Thus, the study examines how various factors, especially way of life aspects typically associated with food consumption, drive consumers to cross-shop between different food formats.

Design/methodology/approach

The study employs data collected from two surveys involving 637 Israeli Jewish and Arab consumers. The conceptual framework and hypothesis are tested using multiple regression analyses.

Findings

The empirical results support our claim that the research approach applied in this study better explains the cross-shopping phenomenon. Specifically, the analysis provides strong support for the effect of consumers' way of life on cross-shopping behavior.

Practical implications

The paper provides managerial and planning implications to modern retailers and managers of international retail firms that operate in or plan to enter non-Western markets.

Originality/value

This paper contributes to the available literature in several ways. In particular, the paper suggests a systematic and comprehensive conceptual framework that identifies the key determinants of cross-shopping decisions and the relations between these and supermarkets' market share growth.

Details

European Journal of Marketing, vol. 48 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 June 1985

Sue Sharples

The burgeoning of the convenience store in the UK is taking many forms — from the home‐grown variety (often via symbol groups) to transatlantic imports. What they have in common…

Abstract

The burgeoning of the convenience store in the UK is taking many forms — from the home‐grown variety (often via symbol groups) to transatlantic imports. What they have in common is extended opening hours and a broad variety of merchandise, hut within that band there are many variations, and the style of the operations are often dictated by the character of the parent company. We are now seeing the beginnings of an indigenous multiple, which, while springing from the roots of a floundering grocery chain, nevertheless has a mark of distinction and has pushed the c‐store into the upmarket bracket for the first time. Sue Sharples looks at the new style Cullen's convenience store.

Details

Retail and Distribution Management, vol. 13 no. 6
Type: Research Article
ISSN: 0307-2363

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