Comprehensive Business Plan: Grocery Retail with Physical Stores

This report outlines a business plan for a grocery retail company, focusing on the integration of physical stores to complement its existing online operations. The plan addresses the limitations of online-only shopping, such as the inability for customers to physically inspect products and the high cost of individual deliveries. The proposed solution involves establishing physical stores to reduce logistics costs, provide customers with direct access to goods, and improve customer service and satisfaction through an omni-channel business model. The report analyzes market dynamics, highlights the benefits of physical stores in terms of customer engagement and market growth, and identifies critical success factors such as unified information access, employee training, and technology improvements. The feasibility of the idea is assessed, emphasizing the potential for increased customer service, market expansion, and technological innovation. The report concludes by advocating for the adoption of a physical store strategy to enhance the company's interaction with customers and strengthen its brand presence, aligning with the trend of successful retailers incorporating physical locations.

Running head: CRITICAL THINKING 1
COMMUNICATION AND CRITICAL THINKING
Name
Institutional Affiliation

CRITICAL THINKING 2
Business idea
Innovation is an important aspect for businesses today to promote growth as well as keep
with the global trends in the market as described by (Fagerberg, & Godinho, 2004). Technology
has made the retail business go on another level when it comes to business because shopping
online has been made fun as explained by (Wolfinbarger, & Gilly, 2001). As much as online
shopping has been made easy for people all over but consumers who buy groceries from the
company’s website need the touch of an item they are buying while some also need more
information about the goods provided by the company that the website does not provide.
Customer
A physical store is important to reduce the cost of logistics of the company, makes
delivery of goods faster as well as to provide the customers with a place they can walk in, view
the goods as well as return them when must. They will have one pick up point of the goods with
the help of the agents and get more information about the goods. A store also provides them a
variety of goods that they can get enticed to and buy even more but at the same time customers
can order online, buy online but come to pick goods at these stores. This improves customer
service and satisfaction which is the main key of success to the company. (Liu et al., 2013).
Market
The essence of a market is to provide an avenue for trade between sellers and buyers,
making a place to carry out efficient transactions. It is better for a market which has the access to
a wide variety of sellers who provide an array of goods for the buyers. Buyers are more likely to

CRITICAL THINKING 3
access such a market. Since the market is physical it provides a stationary place where the sellers
and buyers can easily access each other therefore reducing the cost of travelling in search of
either a buyer or a seller.
Problem
The major problem at the company is that they are no physical stores costumers can walk
in see the item, touch it and even choose others to buy instead they shop online. To be able to
solve this problem, there is a need for the company to set up physical stores in different locations
in the country. The cost of transport is high making delivery of goods bought buy online
customers costly to the company. To solve the physical markets may be used as the customer has
direct access to the goods.
Business model- Omni channel business model
Business components
Key
Partners
It is totally
associated
with
WALMART
as its
subsidiary
but first, it
started as
a whole
eventually
it merged
under it.
Key Activities
Key activities
are related to
an online
sale of
grocery
items to
people in the
US so as to
earn a
maximum
amount of
profit (Fan et
al., 2017).
Value
Proposition
 The
needs and
wants of
customers
are taken
care by
Jet.com in a
very
appropriate
manner so
that there is
growth in
business as
well. So as
to do it, it
uses a very
Customer
Relationships
Maintaining the
relationship with
customers is as
similar as to take
care of your
belongings (Ng,
2017). After sale
services and
return policy of
Jet.com is very
good that
customers feel
reliable while
buying any
products from the
website.
Customer
Segments
Jet.com have a
very defined
customer
segment as for
now as it is an
e-commerce
website so it is
available to
many people on
a large scale
whosoever has
access to the
internet in the
US. People who
are being
targeted by

CRITICAL THINKING 4
good pricing
algorithm so
as to attract
and satisfy
with the
value of
money they
pay for the
products
WALMART are
similarly
important for
Jet.com as it is
a subsidiary of
it (Zhang, Sun,
& Lyu 2017).
Mainly the
females are
targeted as
they are more
concerned
about the factor
to buy grocery
for houses.
Eventually, all
the other
segments such
as children men
etc. are also
targeted.
Key
Resources
The key
resources
of the
company
are its
products,
people,
finances it
acquires as
it is a
subsidiary
of the giant
company
WALMART
it is in safe
hands in
the name of
resources.

Channels
There are several
channels of
communication,
products
distribution, and
sales through
which a company
sell its products
(Remane et al.,
2017). Likewise,
Jet.com uses
online means to
reach to its
customer and
deliver them
through courier
and various
channels of
distribution.
Cost Structure
Costing structure is very much
authenticated and expertly
driven upon which the
customers can rely and totally
be in a composition of (Rüb,
Bahemia, & Schleyer 2017).
Revenue Streams
The company is already working on a very
reliable pricing algorithm which returns
the company in a very proportionate
manner that it supplies satisfaction to a
customer as well as the cost of goods is
also actualized (Sathananthan et al., 2017).
Business Components
There is always a need for activities in a company to be integrated to work as one unit.
Omni channel business strategy will work best for the company as explained by (Piotrowicz &
Cuthbertson, 2014). This model consists of one sales channel in that the online operations and
the stores work as one. This is to mean that the customers can place their order of goods online

CRITICAL THINKING 5
and come to pick them at the store at the same time, they can place their orders online and if the
goods don’t match their specifications, they can return them to the store. The customers are able
to choose whichever method of shopping that suits them.
This business model requires the stores and the online market to be able to coordinate to
achieve the same company goals and objectives. The company works to achieve better
responsiveness, flexibility and reliability to customers who shop both at the physical store and
online.
This Omni channel business model is very friendly to the customers and helps build a
strong customer relationship and this will help expand on the market for the grocery. It will help
the company to cut on the cost of shipping goods to individuals across the country. It is
expensive to deliver goods and most retailers have invested so much in logistics and this will
help generate more revenue. A physical store will make the business easy and attractive. This
model requires that all activities in the nine blocks be interconnected to bring better results.
Benefits of a physical store to customers
A physical store as demonstrated by (Kacen, et al., 2013), is very important since it gives
the customer a different experience from online shopping sometimes. It promotes customer
engagement which builds a strong relationship with them and this leads to market growth of the
business. The customers can pick up the goods from the store and return them if they done match
their specification. Secondly, delivery of goods will be made faster and easier maybe reduced to
one day which means the service provided to customers will be efficient. Free shipping may take
a week to deliver to customers. If a physical store is set up, it’s a guarantee most customers will
come to the store and the few that prefer online shopping will be delivered faster to them.
Customers may also get to know more about other groceries and their health benefits,

CRITICAL THINKING 6
information that is not provided at length by the website. Engaging the customers when buying
goods will lead to them building a strong relationship and bond with the company.
Critical success factors of the idea
Information to the customers is a critical factor in the company’s success for the company
to be agile, the management should be able to have access to both online and stores information.
The customers should be able to access information both online and the physical stores in their
locations to experience the Omni channel strategy. To be able to make this a success to the
company needs to make the information available to customers unified in that the information
online and offline match.
Training of the service providers is also important. (Smith, 2001). The company needs to
provide proper training to the team that will work at the stores to push the sales of the products.
Team work should also be highly advised so as to promote commitment. Technology should also
be improved in that the company should develop software that will help in keeping accurate data,
avoid errors and coordinate information between managers, sales office and the back office.
(Chopra, 2003).
Manager-employee relationship is also a key factor. The employees should be able to
work together to meet the company’s objectives and goals which requires lateral communication
from the managers to them. They should be given information that will help them succeed at
their work; the management should promote transparency to promote trust in the team.
Feasibility of the idea

CRITICAL THINKING 7
A physical store will make the company efficient in future. The integration of the online
shopping and stores will increase customer service and satisfaction. The company cost of
shipping goods for individual orders will be cut down if these stores are built. The market will
also grow if these stores are set up in different location to allow quick and efficient accessibility
by customers. This idea will also promote commitment, trust and team work among employees
which will improve services. It will also promote customer engagement and business which will
lead to loyalty and an increase in the number of customers which is the main objective of the
company. It will also help in the improvement of technology and innovation; there will be a need
to expand on the technology used in the sharing of information both to the customers and the
company members. They should also make sure that there is technology that will make sure that
information shared online and offline is unified and accessible to customers all the time.
(Bendoly, et al., 2005). Internet business has become a common trend a for a company to be
successful it should consider these key factors.
Conclusion
Online shopping has made buying of items easy in the world today such that people do
not have to come out of their house. The concept of having a physical store should also be
considered since people want to have the touch of an item before buying them as emphasized by
(Soars, 2009). Online retailers such as Amazon have seen it a success by introducing locations
where customers can pick or return items. Setting up a physical store will help the company to
interact with customers and sell their brand more. Most companies that have considered setting
up a physical store are finding it a very good idea because it feels different from the traditional

CRITICAL THINKING 8
retail shops. For the future success of this business, the online retailers and brick and mortar
traditional retailers should come together to find ways which sales can be channeled.

CRITICAL THINKING 9
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