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Blue Apron Disruption in the US Food Industry Case Solution

Solution Id Length Case Author Case Publisher
2794 1509 Words (6 Pages) Arpita Agnihotri, Saurabh Bhattacharya Ivey Publishing : W18375
This solution includes: A Word File A Word File

Blue Apron is a company that sells food meal kits on a subscription basis, catering to people who want to cook healthy, delicious meals at home but find going to the grocery store to be a hassle. To attract clients, they're providing a meal kit delivery service that provides fresh, healthy food at a reasonable price. Unlike suppliers of conventional meal delivery services, this business aids young professionals and families with working parents in maintaining a balanced diet by sending them vegetable patch, preportioned and packaged food products in the shape of meal kits, as well as a recommended recipe. The consumer has a desire to stock their kitchen with nutritious foods, but they've found grocery shopping to be an onerous and time-consuming process that leaves them with less options than they'd like. To combat this, Blue Apron created a meal-kit delivery service that provided clients with fresh, healthy food at a reasonable price. The price, ease of use, and support offered by Blue Apron are all examples of several types of value propositions.

Following questions are answered in this case study solution

  1. Using the information in the case, evaluate Blue Apron's value proposition in detail. Describe the customer segments, the problem experienced by the customer, and Blue Apron's solution.

  2. Using the five forces framework, analyze the meal kit industry. How attractive is the industry overall?

  3. Evaluate Blue Apron's revenue model. What type of revenue model are they currently using? What are the advantages and disadvantages of this type of model? How would you recommend adjusting the revenue model to attract new customers?

  4. Using information from the case and the concepts discussed in class, evaluate Blue Apron's cost structure. Which costs will be most problematic as they attempt to grow? Be specific.

Case Analysis for Blue Apron Disruption in the US Food Industry

1. Using the information in the case, evaluate Blue Apron's value proposition in detail. Describe the customer segments, the problem experienced by the customer, and Blue Apron's solution.

Blue Apron is a company that offers food meal kits via subscription to customers who want to eat good, good health home-cooked meals but find it difficult, expensive, and night before going to bed to go food shopping. Their target customers are people who want to eat good, healthy food at home but find it difficult to go food shopping. A delivery of meal kit service is one of the ways in which they provide consumers with food that is both fresh and within their price range.  In overall, they encourage new experts and family members with working mothers to live a healthy lifestyle by supplying them to meal kits that contain vegetable patch, preportioned, and bundled food items. The client segment category of the firm is known as a niche market, which refers to a specific and specialised customer segment, because the company aims to attract young workers and couples with working mothers who are between the ages of 25 and 34. The issue that the consumer is having is that they want to consume nutritious meals at home, but you find that going to the grocery store is difficult, expensive, and time-consuming. As a result, Blue Apron has devised a solution to this issue in the shape of the meal kit delivery service that offers consumers with food that is both reasonably priced and of high quality. Blue Apron's value propositions may be broken down into several categories, including cost, ease of use and comfort, and customer support. They not only offer reasonable prices to their clientele, but also simplicity and convenience in the form of the fact that their clients do not need to go out and shop for food, and in addition, they give delivery services to their clientele as a kind of customer service.

2. Using the five forces framework, analyze the meal kit industry. How attractive is the industry overall?

  • Rivalry among existing competitors: Competition that is harmful to both businesses in the following ways: The companies that came in second, third, and fourth place after Blue Apron were HelloFresh SE (28.5%), Home Chef (10.5%), and Sun Basket (7.9%), respectively. As a direct consequence of this, Blue Apron's share of the market fell from its all-time high of 57 percent in September 2016 to its all-time low of 40.3 percent towards the end of 2017.

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