Lifvs electronic self-service Grocery store.
Read the Case below and Answer the following Questions.
Hummelsta, a town of 1 000 people in Sweden surrounded by a beautiful pine forest, has not had
had any local shops for a decade. Since December 2020, a red wooden container, has offered a
lifeline, serving as a mini grocery store that locals can access round-the-clock. The store stocks a
wide assortment of groceries, from fresh fruit and vegetables to Swedish household staples like
frozen meatballs, crisp breads and wafer bars. Inhabitants now no longer have to travel to the city
to buy small convenience snacks and small grocery items.
The store is part of the Lifvs chain, a Stockholm-based start-up that launched in 2018 with the
goal of returning stores to remote rural locations where shops had closed down because they
struggled to stay profitable. The specificity of the Lifvs store is that there are no staff or
checkouts. You open the doors using the company’s app, which works in conjunction with
BankID, a secure national identification app operated by Sweden’s banks. Then, you can scan
barcodes using your smartphone and the bill is automatically charged to a pre-registered bank
card. Alongside skipping the need to pay cashiers, the firm also avoids pricey long-term rental
leases. And if there’s less footfall than expected in one location, the wooden containers can easily
be picked up and tested elsewhere.
Sweden has a tech-savvy population, so it is easy to see why the model has taken off here,
despite critics warning that it would make shopping a less sociable experience. And, during the
pandemic when people have been encouraged to limit contact with others, its lack of staff has
been a major bonus. The consumer has matured a lot in a digital way during the pandemic.
Swedes have been shopping online, they worked through video calls. Therefore, they are ok to
now to go into a store using a digital tool like a mobile phone. Shopper Ms Hellqvist atetes: “My
parents are 60, but they don’t have a problem with the technology.”
Lifvs co-founder Daniel Lundh saw the opportunity in rural locations, and the chain has opened
20 new shops in rural neighbourhoods since March last year. Lifvs is planning to launch
hundreds more container stores in Sweden in the next few years. There is global interest in the
idea, and the company’s mulling whether to share its technology with supermarket chains in
other countries or launch more of its own container stores across Europe.
Since the company always knows the identity of who is in the store at any moment, this limits
shoplifting. There are 24-hour surveillance cameras too, which alert the store’s manager if there
is a break-in or a stock spillage. The manager looks after four stores in the region, usually
visiting once a week to clean, stack the shelves and put together click-and-collect orders made
online. Lifvs uses artificial intelligence to work out what stock to order for each store, based on
the data it collects about locals’ shopping habits. Customers also receive digital coupons and
special offers based on their previous purchases.
Elsewhere in Sweden, Lifvs has competition from the country’s major supermarket chains ICA
and Coop, which have been testing both unmanned stores and hybrid models, with some shops
going staff-less during off-peak hours only. In Stockholm, Coop recently opened an unstaffed
convenience store in the city centre. While quieter than usual during the pandemic, the idea is
that its tech-aware members can feed back on their experiences using the store, and any other
new retail technologies Coop wants to experiment with.
Source: Adapted from BBC News, 09 March 2021, and other Web resources
Answer the Following Questions [Word limit=1400 words]
Q1 [15+10=25 Marks]
i. Based on information in the case and our discussion of Innovation in class, critically
analyze the Business Model of Lifvs (i.e. how it creates, delivers, and captures
value). Propose a short statement of its value proposition.
ii. As discussed in class (Chapter 6), critically analyze what types of Appropriability
Mechanisms are available to Lifvs, and hence recommend which one(s) it should
adopt to protect its resources. Be comprehensive and justify your arguments.
Q2 [10+10+5=25 Marks]
Your young cousin Maysoon is a dynamic young entrepreneur. She is visiting you at your home
after reading the above case. She wants to launch a similar business concept in UAE, and she
needs to raise funding for her new startup.
i. After briefly analyzing the different sources of funding and Innovation support
institutions Maysoon may access in UAE, make a recommendation how Maysoon
may secure funds for her startup.
ii. What different Sources of Innovation should Maysoon consider to get ideas/insights?
How can she access these sources?
iii. What Ethical consideration and data privacy issues should Maysoon consider?
The post Lifvs electronic self-service Grocery store first appeared on Bestchoice Writers.