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Re-Imagining The Grocery Store: Eataly Analysis Case 2 Assessment Answer

Case 2  Assignment
Eataly:  Re-imagining the Grocery Store

Case Link Will Be provided:

Assignment Question:

As a trusted advisor to Oscar Farinetti, CEO of Eataly, you have been asked to suggest and evaluate options, and to make a recommendation that helps the company achieve its ambitious global goals. Mr. Farinetti expects your recommendation to be well supported through an analysis of the external and internal environments as well as, but not limited to Eataly’s current financial and competitive position. Account for the COVID-19 crisis and explain how the business model (as described in the case) may need to adapt in the near and long term. Include a brief implementation plan to execute your recommendation.   


  • Maximum two-pages of text (double spaced) and 3 pages of exhibits 
  • 12-point font 
  • 1" margins
  • Paginated
  • Every exhibit has a full and proper title
  • Attractive and professional appearance
  • A cover page with your info

The report should be an persuasive management document following the RSP format:



Plan of Action


Eataly: Analysis 


  • The primary recommendation for Eataly will be in terms of international expansion. Organisations are not taking many risks in the current environment of COVID-19; hence; this could be an opportunity to expand their business without facing much competition. In early times, different retail and grocery store organisations have entered these markets and benefitted from it; hence, expansion in these markets in current scenario will be of vital essence in gaining a competitive advantage in the market.
  • The next recommendation for the organisation will be in terms of marketing. Eataly operates in different markets and is new as compared to other retail organisation such as Wal-Mart and Tesco. Hence, it is essential for the organisation to increase its brand image and value through effective marketing (Sebastiani, Montagnini and Dalli, 2013). Marketing will help Eataly in teaching customers about their products andservices.
  • Another recommendation is linked to quality services and price shrinkage. The organisation will need to provide effective services to its customers to gain their trust and build a relationship. These aspects are essential for customer retention (Colombino, 2018). Even after the impact of COVID-19, a growth of 76% was expected in the grocery sector. Furthermore, the organisation will also need to take care of its product price shrinkage as a high level of price shrinkage could result in lower customer satisfaction (Exhibit3).


Asia and Africa are two of the most populated continents in the world and hence, provides a chance of growth to organisations. Even during the COVID-19 scenario, it is expected that both continents will face a high level of development in the upcoming years. Asia alone has a market of over US$1 trillion of retail that is further expected to grow at a rate of 9% every year. By the end of 2020, the market will reach revenue of US$2 trillion (Canio, Franco and Martinelli, 2020). Hence, this supports the idea of Eataly in expanding in the market of Asia andAfrica.

Marketing helps in increasing knowledge of customers towards the product of organisations. Marketing helps in increasing sales and support organisations in their growth with the help of improved customer experience (Exhibit 1). Customers are afraid of going into shops and grocery stores due to covid risk; hence, by assuring their safety, the organisation could attract towards their services. 87% of grocery organisations agree that there will be an excepted growth in the market. One of the significant aspects that marketing will provide to the organisation will be in terms of engagement (Sebastiani, Montagnini and Dalli, 2013). Marketing will help Eataly to engage with their customers through face-to-face interactions, digital marketing and other marketingtechniques.

Plan of Action

The plan of action for expansion will be in terms of joint ventures, outsourcing and exporting. The organisation should not enter these markets directly and collaborate with local organisations. The organisation will also need to take care of current government norms that have changed due to COVID-19. Outsourcing and exporting is another option available to the organisation as this will involve only direct cost involved in exporting and licensing process. The plan of action for marketing will be in terms of the high level of Use of both digital and traditional marketing techniques (Artusi, Bellini and Era, 2020). In contrast, digital marketing will help the organisation in attracting customers that are of young and are more into the internet. The global digital video ad spends expected to grow from 26.49 billion US dollars in 2019 to 35.05 billion in 2024 (Exhibit 2).

Exhibit 1: Recommedation



Asia GDP is expected to reach $4.7 trillion by 2025.

African GDP is $2.6 trillion.INTERNATIONAL EXPANSION


Nearly 50% of the world's population uses social media 54% of social browsers use social media to research products

Customer SatisfactionCustomer Satisfaction



An Opportunity to Grab

Concerning the competitive advantages, there isa 76% expected growth in the retailing industry by the year 2022

Exhibit 2: Support


Grocery store organisation: Quality products


87% of organisations agree that customer engagement allows growth in sales and by the end of COVID-19, development in customer relationship would be

highly achieved.

Exhibit 3: Plan of Action




HR resource outsourcing 24 %

contact center outsourcing 49 %JOINT VENTURES OUTSOURCING


Digital Marketing

Traditional Marketing

global digital video ad spend is expected to grow from 2649

billion U. S. dollars in 2019 to

35 . 05 billion in 2024


admin errors 21 % vendor fraud 5 % unknown loss 7 %

COVID-19 ImpactsCOVID-19 Impacts

With the growing cases of this pandemic, there has been reported a significant growth in the expansion of the Grocery Retail Stores through online delivering systems in their demographic locations.

Customer Testimonials