Working Procedure of the Business Model

Running head: IS STRATEGY MANAGEMENT
IS Strategy Management and Acquisition: Instacart Case Study
Name of the Student
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Author’s Note:

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IS STRATEGY MANAGEMENT
Table of Contents
1. Brief Introduction of the Company of Instacart..........................................................................2
2. Analysis of Instacart with Value Chain and Competitive Forces Model with its Value
Proposition.......................................................................................................................................2
3. Explanation of the Working Procedure of the Business Model of Instacart with process of
Generating Revenue.........................................................................................................................6
4. Role of Information Technology in the Business Model of Instacart.........................................6
5. Viability of the Model of Instacart for selling Online Groceries.................................................7
References........................................................................................................................................8

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IS STRATEGY MANAGEMENT
1. Brief Introduction of the Company of Instacart
The online grocery business is extremely effective and efficient for their excellent
strategies and technological approach. The online store of Webvan has recently faced losses for
their first move to the advantage strategy and they had to pay more than 1 billion dollars for
building huge distribution warehouses and high investments in marketing (Instacart. 2020).
Instacart is a new entrant in the market of online groceries and they are bypassing the distinct
expenses of transportation as well as warehousing with the help of a legion of independent
contractors as local food retailers. The personal shoppers can receive such orders through the
smart phone application of Instacart, fill up them from the aisles of the grocery store and then
utilize their personal vehicles for delivering them to the doors of the customers. The co-founder
and CEO of this grocery store is Apoorva Mehta and he has been ensuring that all the customers
are getting their products within time and without any issue.
2. Analysis of Instacart with Value Chain and Competitive Forces Model with its Value
Proposition
According to the co-founder and CEO of Instacart, Apoorva Mehta, the competitive
advantage of the organization is of two fold, which includes customers, not being limited to a
single vendor and could eventually combine different items from several stores on 1 order for
ensuring that product selection is completely customized (Martinez-Simarro, Devece and Llopis-
Albert 2015). The second point is that as personal shoppers are on call, the customers might have
to neither order several hours in advance, nor wait for delivery window. The value chain analysis
of Instacart is provided below: