Supermarket Cyber Storm: WhereadMart Went Wrong

Susan Tai ()
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Susan Tai: The Hong Kong Polytechnic University, Kowloon, Hong Kong, China

Asian Case Research Journal (ACRJ), 2002, vol. 06, issue 01, 1-13

Abstract: The launch of adMart, which sold and delivered discounted groceries, home appliances and office supplies through the Internet, fax and phone-in orders with free delivery service, provoked a wave of price-cutting by rival supermarket chains in June 1999. It forced Park'N Shop and Wellcome, the duopoly in the Hong Kong grocery market, to improve their services by providing free delivery services and expand their on-line business. However, the price war – although beneficial to consumers – proved to be a costly exercise for retailers. This case focuses on the impact on the grocery industry caused by adMart and how the present duopoly can bar the entry of new players. The causes of adMart's failure and Hong Kong's consumer attitudes toward grocery shopping on the Internet are also addressed.

Date: 2002
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DOI: 10.1142/S0218927502000166

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