Study on Market Feasibility of Grocery Online

Launching and Online Grocery Shop in United Arab Emirates
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Abstract
The study considered the market feasibility of Grocery Online, which is a start-up online retail
store selling the grocery products to the people of United Arab Emirates. The identification of
the problem statement and research rationale would help in developing the aim, research
objectives, and research questions. The literature study would provide the details of the external
market opportunities and threats. Furthermore, this section of the study would also generate the
ideas about the necessary promotional activities that would be more beneficial in drawing the
attention of the customers towards the e-grocery products. Porter’s five forces analysis provides
the detailed analysis of the market in terms of the market positioning.
The business plan is focusing on the establishment of the online grocery shop in United Arab
Emirates. In this business plan, the positivism philosophy is selected to extract the hidden truth
from the number of responses. It has been observed that the assumptions would not be preferable
for establishing the business that has to deal with the long sustainability purposes. The use of the
deductive approach and descriptive techniques was also quite beneficial for the study. On the
other hand, the mixed method research is also developed in this study.
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Acknowledgement
I am quite grateful to the MBA program that has helped me in generating the adequate
knowledge about the business research method. I would like to thank my professors and mentors
for assigning this project work. The enormous help and supports derived from their end were
much significant for me. I would like to thank the participants in the primary data collection
process. I would like thank each one of the associates for keeping faith on me and providing me
this opportunity to enhance my personal and professional skills.
Thanking You
Regards
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Table of Contents
Chapter 1..........................................................................................................................................8
Introduction......................................................................................................................................8
1.0 Introduction................................................................................................................................8
1.1 Research Background................................................................................................................9
1.2 Background of the Company.....................................................................................................9
1.3 Rationale of the Research........................................................................................................10
1.4 Scenario Chosen......................................................................................................................11
1.5 Research Aim...........................................................................................................................13
1.6 Research Objectives.................................................................................................................13
1.7 Research Questions..................................................................................................................13
1.8 Research Significance..............................................................................................................14
1.9 Project Structure......................................................................................................................14
1.10 Summary................................................................................................................................16
Chapter 2........................................................................................................................................17
Literature Review..........................................................................................................................17
2.0 Introduction..............................................................................................................................17
2.1 Conceptual Analysis of the e-commerce grocery business.....................................................17
2.2 e-Grocery market in United Arab Emirates.............................................................................19
2.5.1 Porter’s Five Forces Analysis...............................................................................................24
2.5.2 SWOT Analysis....................................................................................................................27
2.6 Statement of the Future Desired Position................................................................................28
2.7 Gap Analysis............................................................................................................................29
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2.8 Linking the identified Gaps.....................................................................................................29
2.9 Implementation Plan................................................................................................................30
2.10 Outcomes of the Key Stakeholders Group............................................................................31
2.11 Resource Implications...........................................................................................................32
2.12 Budget Planning.....................................................................................................................33
2.13 Summary................................................................................................................................34
Chapter 3........................................................................................................................................35
Research Methodology..................................................................................................................35
3.0 Introduction..............................................................................................................................35
3.1 Research Philosophy................................................................................................................35
3.1.1 Justification of Selecting Positivism Philosophy..................................................................36
3.2 Research Approach..................................................................................................................37
3.2.1 Justification of Selecting Deductive Approach....................................................................37
3.3 Research Design......................................................................................................................38
3.3.1 Justification of Selecting Descriptive Design.......................................................................39
3.4 Data Collection Process...........................................................................................................39
3.4.1 Secondary Data Collection Process......................................................................................39
3.4.2 Primary Data Collection.......................................................................................................40
3.5 Sampling Method and Sampling Size......................................................................................42
3.6 Data Analysis Method.............................................................................................................43
3.7 Accessibility Issues..................................................................................................................43
3.8 Ethical Consideration...............................................................................................................44
3.9 Time Schedule.........................................................................................................................44
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3.10 Summary................................................................................................................................45
4.0 Introduction..............................................................................................................................47
4.1 Part A Survey...........................................................................................................................47
Quantitative data............................................................................................................................47
4.2 Part B Qualitative data.............................................................................................................62
4.3 Summary..................................................................................................................................63
Chapter 5........................................................................................................................................64
Conclusion and Recommendation.................................................................................................64
5.0 Conclusion...............................................................................................................................64
5.1 Linking Objectives with Literature Review and Primary Data Information...........................64
5.2 Recommendations....................................................................................................................66
5.3 Future Scope of the Research..................................................................................................67
References......................................................................................................................................68
Appendix........................................................................................................................................78
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List of Figures
Figure 1.1: Research Structure......................................................................................................15
Figure 2.1: Estimated Online Retail Sales.....................................................................................22
Figure 2.2: Porter’s Five Forces....................................................................................................24
Graph 4.1 Gender of the customers...............................................................................................48
Graph 4.2 Durability of the customers regarding the online purchases........................................49
Graph 4.3 Response of the customers regarding the current performance of the online shopping
services..........................................................................................................................................51
Graph 4.4 Satisfaction levels of the customers regarding online services fulfilling their dreams of
possessing branded products..........................................................................................................52
Graph 4.5 Important factors for the customers while making online purchases...........................54
Graph 4.6: Preferences of customers regarding online grocery purchase and store visits............55
Graph 4.7: Response of the customers regarding the presence of essential factors for receiving
quality products.............................................................................................................................57
Graph 4.8: Reasons why customers prefer to buy grocery items online.......................................59
Graph 4.9 : Satisfaction of the customers regarding the services of the ecommerce sites............60
Graph 4.10: Preference of online sites for purchasing grocery items............................................61
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List of Tables
Table 2.1 SWOT Analysis.............................................................................................................28
Table 2.2 Key Stakeholders...........................................................................................................31
Table 2.3 Financial Budget............................................................................................................34
Table 3.1: Timeline........................................................................................................................45
Table 4.1: Gender of the customers...............................................................................................48
Table 4.2: Durability of the customers regarding the online purchases........................................49
Table 4.3: Satisfaction of the customers regarding the current performance of the online
shopping services...........................................................................................................................50
Table 4.4 Satisfaction of the customers regarding online services fulfilling their dream of
possessing branded products..........................................................................................................52
Table 4.5 Important factors for the customers while making online purchases............................54
Table 4.6 Preference of online shopping over store visits.............................................................55
Table 4.7 Response of the customers regarding the presence of essential factors for receiving
quality products.............................................................................................................................57
Table 4.8 Reasons why customers prefer to buy grocery items online.........................................58
Table 4.9 Satisfaction of the customers regarding the online services of the ecommerce sites....60
Table 4.10 Preferred online sites for purchasing grocery items....................................................61
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