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15FEN: Finding The Blue Ocean in Chinaˇ¦s Fresh Food  
Product Ref: 16/573C Company:

Product Type: Case Industry: Agricultural Products
Packaged Foods

Related Product(s): Teaching Note
Authors: Kevin Zhou   Josephine Lau
15fen was the name Henry He gave his first business venture ˇV a neighborhood store in Guangdong province, China, which promised home delivery of a grocer order within 15 minutes. His inaugural slogan was, ˇ§Staple Food & Seasoning, Everything At Your Doorstep in 15 Minutesˇ¨. A first time entrepreneur, he was imbued with optimism towards internet retailing, and convinced that home delivery within 15 minutes was an unbeatable proposition. In no time, he learned the realities of the grocery business ˇV low margin and hard labor ˇV carrying bags of rice and tins of cooking oil from door to door. Back in 2012, Chinaˇ¦s internet retailing was dominated by Consumer Electronics, Apparel and Footwear and Consumer Appliances. Fresh Food was tipped to be the next big driver for e-commerce. Headlines such as ˇ§Fresh Food e-commerce will be the next blue oceanˇ¨ were commonplace in the media, and they captured the imagination of aspiring entrepreneurs like Henry He. He was determined to ride this e-retailing wave to create his blue ocean in Fresh Food. But first, he must learn how to swim.
Functional Area : Marketing
Strategy & General Management

Learning Objective: (1)Learn how to use the Blue Ocean Theory for value innovation.
(2)Understand the dynamics between the supply chain and the value chain in strategy formation.
(3)Learn to identify strategic options and evaluate their pros and cons in strategy formation.
(4)Explore business model innovation in product & services for O2O Fresh Food retailing.
(5)Acquire knowledge of marketing to consumers for internet shopping, in particular Fresh Food retailing.
Length: 17 pages Country: China (People's Rep. of)

Pub. Year: 2016 Level of Difficulty: 2
This product type is available in the following language(s):      English
Related Information: N/A
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