“Good tools lead to half the work” (Hungarian proverb)
In this context, good tools can be regarded as technical tools. The quote illustrates that the right technical tools can save a great deal of work and according to that costs as well. The primary goal of a retail company is to reduce costs in order to maximize the company's ultimate profit. The increasing price sensitivity of the customers is leading to an intense competitive pressure between all companies. The costs incurred by products offered at a discount must therefore be saved elsewhere, otherwise the profit will be reduced. These points are leading to the fact that the control of cost dynamics and the greatest possible increase in efficiency are becoming more and more important for companies.
Table of Contents
1. Introduction
2. Literature review
2.1 The different innovation areas
2.2 Systematics of source selection and critical reflection
3. Empirical Research
3.1 Innovation Paths
3.2 Current examples
4. Discussion
4.1 FreshCo’s Business Model Canvas
5. Conclusion
Research Objectives and Themes
This paper aims to investigate how technological innovations and digitalization can be utilized by food retailers to increase efficiency and reduce costs, exemplified by the development of a futuristic business model for the company "FreshCo." by 2030.
- Technological transformation in food retail
- Application of artificial intelligence and robotics
- Implementation of self-service technologies
- Business model development via the Business Model Canvas
- Strategies for cost reduction through automation
Excerpt from the Book
Robots in food retailing:
The technological change is also progressing ever further in Germany. Due to the positive response from the environment, robots will be part of the store fittings in the coming years and it will be hard to imagine life without them. Even today, individual entrepreneurs are already planning the use of these technologies in terms of store fittings and store design. (Saumweber, 2018)
The robots are able to relieve the employees in the following tasks by built-in artificial intelligence:
- Record and check inventory levels
- Detect shelf gaps and misplacements
- Check prices
- Clean shelves and floor areas
Currently, the technology of humanoid robots is not yet developed to the point where they could completely replace all the tasks regularly performed by employees. Apart from that, the machines are still so expensive that hardly any retailer can afford them, especially not in large numbers. (Anonymus, 2018)
Summary of Chapters
1. Introduction: Outlines the goal of cost reduction in retail and introduces the concept of a technologically advanced, staff-free supermarket as the central research question.
2. Literature review: Provides a systematic overview of current technological innovation areas in retail and evaluates the available source material.
3. Empirical Research: Presents specific innovation paths for "FreshCo." and analyzes existing market examples like Amazon Go and BingoBox.
4. Discussion: Critically evaluates the findings and details the business model of "FreshCo." using the Business Model Canvas framework.
5. Conclusion: Summarizes the feasibility of the futuristic supermarket concept and highlights the importance of public acceptance and technological advancement.
Keywords
Food Retailing, Digitalization, Innovation, Artificial Intelligence, Robotics, Self-Service Technologies, Business Model Canvas, Cost Reduction, Efficiency, Automation, FreshCo., Customer Experience, Retail Technology, Mobile Commerce, Future of Retail.
Frequently Asked Questions
What is the core focus of this publication?
The paper explores the future of food retailing, specifically how technology and digitalization can optimize store operations and efficiency.
What are the primary thematic pillars of the research?
The study covers innovation areas such as robotics in retail, self-service technologies, location-based services, and the implementation of extended shelves.
What is the main objective of the thesis?
The primary goal is to present a business model for a fictional, high-tech supermarket named "FreshCo." that operates efficiently without personnel by the year 2030.
Which methodology is employed in the work?
The research relies on a literature review of professional articles and studies, followed by empirical research that applies these findings to the development of a Business Model Canvas for the target company.
What topics are covered in the main body?
The main body examines current retail innovations, assesses the quality of available literature, provides real-world examples of automation, and develops a strategic business model for "FreshCo."
Which keywords define the essence of the work?
Key terms include Food Retailing, Digitalization, Robotics, Artificial Intelligence, Automation, and Business Model Canvas.
How does the "FreshCo." app enhance the customer experience?
The app offers digital mapping, nutritional planning, personalized offers based on buying behavior, and efficient payment processes, making shopping more convenient and targeted.
What specific challenges did Walmart face with their robots?
Walmart found that the robots were unable to perform tasks better than human employees, leading to their removal after one year, though the company continues to experiment with other automation technologies.
What is the role of the Business Model Canvas in this paper?
It serves as a structured framework to visualize and plan the business strategy of the fictional "FreshCo." supermarket, covering aspects from value proposition to cost structure.
- Quote paper
- Sina Bayer (Author), 2021, A Business Model of the Food-Retailer "FreshCo", Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1002941
