SBM4202: IS Strategy, Management & Acquisition - Report Writing - Management Assignment Help

Assignment Task:

Assessment Details:

This in-class quiz will assess your knowledge of key content areas (Week 1,2 & 3 content) and to identify further support needs. For successful completion of the quiz, you are required to study the material provided (lecture slides, tutorials, and reading materials), engage in the unit’s activities, and in the discussion forums. The prescribed textbook is the main reference along with the recommended reading material. By completing this assessment successfully, you will be able to identify key aspects of information systems. This will help in achieving ULO3 and ULO4.

Assessment Details:

Students need to read the following case study, relevant to IS and business strategies, and answer the questions at the bottom.

Can Instacart Deliver?

The online grocery store Webvan was perhaps the most well-known flop of the dot-com boom. Its 2001 failure led many pundits and investors to concluded that the online grocery business model was untenable. However, Webvan’s downfall was due mainly to pursuing a first-mover advantage strategy. It paid more than $1 billion to build huge distribution warehouses, bought fleets of delivery trucks, and invested heavily in marketing. Then it offered free deliveries on any size order, at virtually any hour, at prices that trumped its brick-and-mortar competitors. This was not a formula for generating profits.

In recent years other companies are testing the waters again for online grocery sales. FreshDirect in New York City has succeeded by combining fresh local produce, organic and kosher items, and customprepared meals with standard grocery store fare. Established brick-and-mortar firms including Albert-son’s, Safeway and Peapod.com (the online entity for both Stop & Shop and Giant) took over as pure play online firms perished.

The newest entrant, Instacart bypasses the expenses of warehousing and transportation altogether by using a legion of independent contractors and local food retailers. These personal shoppers receive orders via the Instacart smartphone app, fill them from grocery store aisles, and use their own vehicles to deliver them to customers’ doors. Like fellow “sharing economy” firm Uber, Instacart minimizes labor costs by requiring its personal shoppers to pay for their own auto and health insurance and Social Security contributions. Purportedly paid between $15 and $20 an hour, depending on how quickly they can fill and deliver an order, most Instacart shoppers work part-time on flexible schedules.

CASE STUDY TASKS:

1. Give a brief introduction about the company Instacart.

2. Analyze Instacart using the value chain and competitive forces models. What competitive forces does the company have to deal with? What is its value proposition?

3. Explain how Instacart’s business model works. How does the company generate revenue?

4. What is the role of information technology in Instacart’s business model?

5. Is Instacart’s model for selling online groceries viable? Why or why not?

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