Freshippo Business Model: Opportunities, Problems, and Recommendations

This report provides an analysis of the Freshippo business model, focusing on its evolution within Alibaba's new retail platform. The report begins with an introduction to the case, outlining the establishment of Freshippo in Shanghai in 2016 and its subsequent expansion. It identifies key problems such as management issues, long waiting times, and poor service, highlighting the challenges within the integrated online and offline business model. The analysis explores the value creation aspects, including the all-in-one experience and customer convenience, while also critiquing the sustainability and profitable growth. The report then discusses decision-making regarding different store formats, such as the cloud supermarket and convenience stores, and proposes management strategies for the various business models. Finally, the report concludes with recommendations for operationalizing the brand, expanding partnerships, and incorporating automation to improve the overall performance of the business model.

Entrepreneurship
Student name

Introduction to the case
• Entrepreneurial case be taken into account is Freshippo
• This is the business model evolution with new retail platform
by one of the popular E business company that is Alibaba.
• The first store of Freshippo initiated in Shanghai in 2016,
January.
• The company expanded the business by owning 46 stores by
the end of June 2018 in 13 cities (hbr.org, 2020).

Problem analysis
• Some of the problems identified include :
• Management issues at store
• Long waiting time in preparation of food
• Poor service
• Therefore from problem analysis of the
case it can be said that the service
offered by the company

Integrated online and offline business model
• It includes integration of online as well as off-line
services
• This reflects the dining area to offer services of
line along with the online ordering facility which
reflect preparation of the orders prior to the entry
of customers whereas the customer could pick up
the order or Dine in the store.
• In order to consider digitalisation the barcode was
considered for the self-checkout convenience.

Integrated online and offline business model
• Critique reflects that the company reflected
long waiting time which was one of the
problems when it comes to efficiency of
business model for Freshippo market.
• The case reflected various stores to be
considered as business model of Freshippo.
Other than regular from store, F2 convenient
store, Freshippo cloud supermarket, Hexiaoma
stores

Value creation
• all in one experience for the consumers that
is to offer supermarket as well as dining
experience for the consumers
• customer convenience
• integration of off-line as well as online
services
• easily order online and check out
• the complaint has also been registered

sustainability and profitable growth
• Considering the sustainability and
profitable growth, this is analysed to
be not fully achieved by Freshippo
business model.

Decision making for convenience store, cloud supermarket, and the Hexiaoma store
• In place of Yi, I won’t have continue to build regular Freshippo
store along with Freshippo cloud supermarket and do not
continue or created F2 convenience store and Hexiaoma store.
• The reason :
• Use of online cloud supermarket for large variety of goods to be
offered
• Freshippo regular store reflects the use of large area
• Disadvantage to continue other two stores that is convenient
store and hexiaoma store

Management of four different business models
• The steps for management of four
business model :
• Technological advancement
• Controlling
• Corrective actions could be taken while
using controlling measures

Recommendations
Some of the major
recommendations that are
made for the brand
include
• Operationalizing
the brand
• Partners to expand
• Automation

Conclusion
• For concluding the freshippo business model evolution analysis, some of
the concluding points include :
• Considered new retail powered supermarket considering various
experimental store formats that is said to be freshippo; initiated in
shanghai in 2016
• New business model have various problems
• Management issues at store, long waiting time in preparation of food and
poor service that has been made in the complaint by the consumers
• Some of the major recommendations that are made for the brand
include operationalizing the brand, partners to expand, and automation.

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