Peapod, Inc

 

  1. What is the competition like in the online grocery business?
  2. What does a five-forces analysis reveals about which competitive forces are strongest/weakest/
  3. What does your strategic group map of the online industry look like? (need to draw map here)
  4. Is Peapod well positioned?
  5. What are the key success factors for companies in the online grocery business? Explain.
  6. Is the online grocery business attractive? Why or why not?
  7. What is Peapod's Strategy? Explain.
  8. What does a SWOT analysis reveal about the companyís situation?
  9. What is your evaluation of Peapodís financial condition?
  1. Net Profit Margin (1994 through 1999)

 

 

 

1999

1998

1997

1996

Cost of goods Sold as a % of total revenues

 

 

 

 

Fulfillment operations as a 5 of total revenues

 

 

 

 

Gen. & Admin. costs as a % of total revenues

 

 

 

 

Marketing and Selling costs as a % of total revenues

 

 

 

 

Operating loss as a % of total revenues

 

 

 

 

 

Other financial analysis?

 

  1. What does a weighted competitive strength assessment (based on the methodology of table 4.4) reveal about Peapodís competitive position vs. Webvan, NetGrocer, and HomeGrocer.com?
  2.  

    A Weighted Competitive Strength Assessment

    Competitive Strength measure

    Weight

    Peapod

    Webvan

    HomeGrocer

    NetGrocer

     

     

    Rating

    Score

    Rating

    Score

    Rating

    Score

    Rating

    Score

    Website features and functionality (as per Gomez Advisors

    0.20

     

     

     

     

     

     

     

     

    Breadth of Product Line

    0.20

     

     

     

     

     

     

     

     

    Geographic Expansion

    0.05

     

     

     

     

     

     

     

     

    Financial Strength to fund expansion

    0.15

     

     

     

     

     

     

     

     

    Order fulfillment capabilities

    0.15

     

     

     

     

     

     

     

     

    Relative prices/costs(as per Gomez Advisors)

    0.25

     

     

     

     

     

     

     

     

    Sum of Weights

    1.00

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Rating Scale: 1=very weak; 5=average; 10=very strong (best among those rated)

     

     

  3. What issues and problems does peapod management need to address?
  4. What recommendations would you make to Peapodís management to get the company on the road to profitability?