I have tried to answer to the section "Difficult questions", and wanted your feedback about my answers.
1. The first one, about liabilities when entering online groceries:
- Margins are generally lower for online groceries
- Distribution door-to-door is more expensive, and also requires new expertise (outsources vs in-house)
- Customer loyalty tends to be lower (to be checked), because they don't shop nearby home anymore
- Threats of new entry, as other players could follow the lead
2. Use existing infrastructure or buy new one? Risks?
- Advantages: limited-to-no investment; timing.
- Disadvantages: capacity might be capped or almost; IT and distribution need to be developed
- Advantages: implement best practice from competitors; everything is designed for online operations and optimized accordingly.
- Disadvantages: high investment (likely); timing is longer.
Please let me know what you think.