Good Case Study On Comparative Operational Differences Between The Case Study’s Online Operation And A Conventional “Bricks And Mortar” Grocery Store.

Online businesses have slowly replaced the brick and mortar system where the customers must make physical appearances to buy the desired products. Theorganicgrocer.com is an example of an online business dealing with online sales of organic fruits and vegetables. The company has established a business model that incorporates reliability, timeliness, dependability, quality and fair price as their core strategy of achieving success. This slogan was established after a through market research to identify various customer needs as well as the competitive analysis which has enabled the company to major in the delivery of organic food.

There are several visible differences between the operations of conventional ‘brick and mortar’ grocery store and an online business. The main difference is characterized by the customers’ physical appearance at the shop. In brick and mortar system, customers must make physical appearance to purchase and collect their desired goods, while in online operations, customers buy their desired products through online channels that involves clicking on the desired order and the item is delivered to the customer at an agreed location and time. This is a similar case seen in the theorganicgrocer.com whereby customers key in the details of the vegetables they wish to buy and they are delivered the following day at the agreed time and place.
Another difference is the operational costs involved in running the business. Brick and mortar invests heavily in employing human resource to do the sales and marketing as well as adequate store and other equipment for storing the vegetables. On the other hand, online business requires little operational costs as the number of employees needed to carry out the operation are few. In addition, the business does not necessarily need a store as they can collect the products directly from the suppliers and deliver them to the customers. For instance, theorganicgrocer.com is operated by only two people and a driver in charge of delivering the products. Other major difference is the mode of payment whereby online business payments are strictly made electronically through the use of secure encrypted methods such as credit and debit cards, wire transfer while brick and mortar relies on cash payments unless the shop allows payment by credit card. On the other hand, customer base and retention is high in the brick and mortar whereby the physical appearances of the customer enables the business to determine their potential growth as compared to the online business where the customer turnover is uncertain.

Key processes in the online operation

An online business starts with the provision of detailed information about the company and the products they are selling as in the case of theorganicgrocer.com the company must ensure an up-to-date details on the product including prices and delivery system. This ensures the sincerity and validity of the brand image and the items on sale are valid and meets the customer needs. Online payment is another process available in e-businesses. After a customer places an order, they pay for the product through the use of encrypted online methods such as the use of credit card, debit card or electronic wire transfer to guarantee safety of the transaction. Delivery service is the last process whereby products are delivered to the customers at the agreed location and time.

Possible operation problems areas in the online business

The company’s marketing strategy is weak based on the fact that the person responsible only generates advertising material when she has free time. This means that the company may not be vigilant in their marketing campaign, thus relying heavily on repeat customers. The company has also received complaints on the delays in deliveries and damaged products, but there is no measure that was taken, such as hiring additional drivers as a result of the increased orders.

Operational improvements for improving competitiveness

Theorganicgrocery.com operates in a competitive industry and despite the strategy of product diversification and constant updating the website, there is need to conduct detailed market research especially to find out more on the changing customer needs and also identify new market segment for their products. In addition, there is need to employ additional human resource in the company particularly to help in various operations as the business intends to expand.