Supermarket Cyber Storm: Where AdMart Went Wrong, Case Study assignment submission.

1. Prepared By:
Abhinav Gupta (11BM60015)
Jaya Prakash Jain (11BM60033)
Srinjoy Saha (11BM60075)
Sovan Nayak (11BM60077)
Abhishek Ranjan (11BM60117)

2.  Established in 1999 by Mr. Jimmy Lai Chee-
ying, a Hong Kong based businessman.
 A direct marketing company that sold
groceries through the Internet and phone-in
orders.
 On-line shopping and free home delivery
service.

4.  Venture by a well established businessman.
 First to enter into cyber shopping in Hong Kong.
 Low infrastructure cost.
 Huge Distribution channel and free home delivery
service.
 Free promotion on “Apple Daily”, one of the best
selling newspaper dailies in Hong Kong.
 Products offered could also be quickly changed
based on market demand and competition.

5.  Distribution system was complex and costly
to administer.
 No fixed agreement with the local
wholesalers.
 Goods from unreliable sources leading to
quality concerns.
 Limited variety of goods < 9000 SKUs.

6.  Incompetence in meeting customer order.
 Highly inefficient use of labor.
 Shortage of labor at peak hours leading to
unsatisfied customer.
 Lack of coherent public relation campaign.
 No fulfillment of promise of money-refund.

7.  Favorable market segment > 2m internet
user.
 Increasing demand for internet sales.
 Newly available virtual credit card facility.
 HKs were too busy to shop.
 Lack of good transport facility for the
customer.

8.  High entry barrier – Duopoly in retail market.
 Not much technology – other bigger player
can follow the same easily.
 Cut throat price war – had to sell product
below cost price.
 Retail price restriction by suppliers and
wholesalers.
 Public’s fear for online fraud.

9.  Try to target a smaller segment first and
gradually build the business.
 Requirement of proper market research.
 Co-operation with the suppliers and
wholesalers.
 Optimized distribution and delivery system.
 “Walk the talk” policy – Customer
relationships management.
 Efficient use of labor resources.
 Should have a concrete contingency plan.

10.  Targeting - Started the business by targeting the
appropriate segment.
 Customer Value - Brought value to the customer
through better customer service, better pricing and
adequate information.
 Supplier Relationship - Forged alliance with large
number of high profile retailers.
 Product Range - Offered wide library of products
at very competitive price.
 Customer Willingness - Western countries were
more comfortable with online shopping.
 Review System – Customer views were given
importance and corresponding improvements
implemented.