Various companies are working to manage digitization and its effects, and it is essential that they find the right way of thinking about this. However, many do not understand even the most basic steps of the process, which leads to development problems. To drive development, it is necessary to change one’s way of approaching this issue.
The aim of this research was to identify the weaknesses, strengths, dangers, and trends in the market and those measures, potentials, and steps to changing one’s way of thinking to advance digitization in Germany. With this in mind, the following research question was posed: to what extent do the weaknesses, strengths, dangers, fears, potentials and trends in backward digitization in Germany depend on one another? To answer the research question, personal interviews were conducted, alongside original research and interviews with renowned companies. The interviewees were divided into three groups: manufacturers, wholesalers, and food retailers. The interview partners were sought from throughout Germany. Each group had an adapted questionnaire. The questions were divided into three categories: weaknesses; potential dangers, fears; and potentials, strengths and trends.
Problems were clearly identified in all three categories that can be traced back to the greatest weakness in Germany at the moment: mindset. All three groups are evidently influenced by this weakness, with progress in digitization increasingly falling behind.
On this basis, the findings of this study indicate that it is advisable to hire younger employees, purchase entire teams, support start-up promotions in the company, and renew the own views of the entire topic. Further research could consider renewal of the own views of the individual components.
Table of Contents
1 Introduction
2 Theoretical background
2.1 Strong food retailers and their digitization
2.2 Food wholesaler and their digitization
2.3 Suppliers and manufacturers
2.4 Food retail trends
3 Transfer performance
3.1 International digitization of food retailers and wholesalers
3.2 Analysis from the Cartel Office of the food retailers
3.3 Food wholesalers and retailer weaknesses
3.4 Fears and potential dangers for food wholesalers and retailers
3.5 Strengths, trends, and potentials for the food market
3.6 German food retail in the future
3.7 Three steps to digital understanding
4 Research method
4.1 Determination of the analysis units
4.2 Interview guide
4.3 Introduction of experts
4.4 Results and interpretation
4.4.1 "Weaknesses” – the results
4.4.2 “Fears and potential dangers” – the results
4.4.3 “Strengths, trends, potentials for the food market” – the results
4.5 Interpretation of the “weaknesses” category
4.6 Interpretation of the “fears and potential dangers” category
4.7 Interpretation of the “strengths, potentials, and trends” category
5 Conclusion
Research Objectives and Key Topics
This master's thesis critically analyzes the food market in Germany to identify existing dependencies between manufacturers, wholesalers, and food retailers within the context of increasing digitization. The central research question investigates to what extent weaknesses, strengths, dangers, fears, potentials, and trends in the context of lagging digitization in Germany are interdependent, aiming to derive new approaches for companies to improve their market positioning.
- Digital transformation strategies in the food supply chain
- Analysis of power dynamics between retailers, wholesalers, and manufacturers
- Identification of market-specific digitization barriers and opportunities
- Evaluation of customer behavior and online food retailing
- Methodological framework for organizational digital self-assessment
Excerpt from the Book
1 Introduction
In 2012, in the US, the trading giant Amazon entered into the B2B trading with Amazon Supply. At the beginning of 2013, Google followed, with a large-scale beta test of Google Shopping for Suppliers; and in mid-2016, Ebay launched the B2B marketplace Ebay Business Supply. Digital technology opens new distribution channels and provides access to new customer groups. At the same time, there are fundamental customer behaviors and expectations. Target groups and sales channels are becoming increasingly complex and payment flows are changing due to new business models. In addition, original digital competitors such as Amazon, Ebay, Mercateo, and Alibaba are entering into individual wholesale segments and thus providing direct competition. These new competitors are breaking the traditional links between producers, wholesalers, craftsmen, retailers and specialist dealers, and consumers and bringing into question the traditional division of tasks in two- or three-tier distribution. They often bring with them extensive experience the digital B2C business, including digital knowledge and an infrastructure advantage and a high degree of logistical competence. The classic wholesale traders must react quickly to these challenges to remain competitive and prepare for the digital future.
The internet also offers enormous opportunities to wholesalers to better serve their customers. The most substantial risk such wholesalers face is a failure to exploit this potential. The knowledge must be internalized to initiate the necessary fundamental sensory and strategic change and implement it along the entire value chain.
Chapter Summaries
1 Introduction: Provides an overview of the B2B trading landscape, highlighting the entry of digital competitors and the resulting pressure on traditional wholesale and retail models.
2 Theoretical background: Examines the corporate structures of major German food retailers and discusses the specific challenges wholesalers face regarding digitization.
3 Transfer performance: Analyzes the market power of large retail chains, the dependencies of manufacturers, and outlines the "Three steps to digital understanding" model.
4 Research method: Details the qualitative research approach, including the conduction of expert interviews and the application of content analysis to identify market trends and weaknesses.
5 Conclusion: Summarizes the findings, emphasizing that mindset is the primary barrier to digital progress and recommending proactive strategic adaptation.
Keywords
Digitization, Food Retail, Wholesale, Supply Chain, B2B, Market Concentration, Customer Behavior, E-Commerce, Big Data, Strategic Management, Digital Transformation, Market Power, Manufacturer Dependency, Online Grocery, Mindset.
Frequently Asked Questions
What is the core focus of this research?
The thesis focuses on the competitive dynamics within the German food market, specifically investigating how digitization influences the interactions and dependencies between food manufacturers, wholesalers, and food retailers.
What are the primary themes covered in this work?
Key themes include the impact of market concentration, the role of large retail chains as "gatekeepers," the slow adoption of digital business models due to organizational mindsets, and the emerging potential of platform-based solutions.
What is the research goal?
The primary goal is to identify current market weaknesses, strengths, and risks to understand how companies can proactively adapt their strategies to thrive in a more digitized environment.
Which methodology is employed?
The study utilizes a qualitative research methodology, conducting semi-structured interviews with industry experts from major corporations representing the three tiers of the supply chain.
What does the main body discuss?
The main body investigates the digital maturity levels of companies, analyzes specific industry trends like subscription models, discusses the role of Big Data, and presents a three-step model for achieving digital understanding.
Which keywords define the work?
The work is defined by terms such as Digitalization, Food Retail, Wholesale, B2B, Supply Chain, and Market Concentration.
Why are food retailers considered the "gatekeepers" of the market?
Due to high market concentration, large chains like Edeka and Rewe possess significant bargaining power, allowing them to dictate conditions to suppliers and remove brands from their assortments to exert pressure.
How does the author propose overcoming the "mindset" barrier?
The author suggests fostering a digital culture through training, bringing in outside innovation via startups or specialized teams, and transitioning from traditional, inflexible processes to more agile, data-driven approaches.
- Quote paper
- Oleg Korob (Author), 2019, The critical study of food retailers versus wholesalers. Opportunities of digitization in the international market, Munich, GRIN Verlag, https://www.grin.com/document/1191043
