Publications
Publications
- August 2020 (Revised March 2021)
- HBS Case Collection
Migros Turkey: Scaling Online Operations (B)
By: Antonio Moreno and Gamze Yucaoglu
Abstract
The case opens in February 2020 as Ozgur Tort and Mustafa Bartin, CEO and chief large-format and online retail officer of Migros Ticaret A.S. (Migros), Turkey’s oldest and one of its largest supermarket chains, are looking over the results of the fulfillment pilot the company had been running since June 2019. Comparing the data from dark store, micro fulfillment center, and store pick models, the duo see that contrary to the expectations outlined in their business plan in May 2019, the mini dark-store performance metrics were superior to those of the dark store format.
As the online grocery market is evolving, the duo decide to refrain from going forward with one fulfillment model only and decide to mix and match the fulfillment models as needed and buttress the efforts with automation for picking to increase efficiency. On the last mile, the teams decide to focus on pooling and developing an algorithm to automate deployment while trying to combine delivery efforts for both Sanal Market and Hemen. Decisions with regards to Hemen’s offering are yet to be made as its competitors manage to raise money from Silicon Valley.
As the online grocery market is evolving, the duo decide to refrain from going forward with one fulfillment model only and decide to mix and match the fulfillment models as needed and buttress the efforts with automation for picking to increase efficiency. On the last mile, the teams decide to focus on pooling and developing an algorithm to automate deployment while trying to combine delivery efforts for both Sanal Market and Hemen. Decisions with regards to Hemen’s offering are yet to be made as its competitors manage to raise money from Silicon Valley.
Keywords
Grocery; Business Model; Strategy; Digital Platforms; Information Technology; Technology Adoption; Value Creation; Globalization; Competition; Expansion; Logistics; Profit; Resource Allocation; Corporate Strategy; Retail Industry; Turkey
Citation
Moreno, Antonio, and Gamze Yucaoglu. "Migros Turkey: Scaling Online Operations (B)." Harvard Business School Supplement 621-027, August 2020. (Revised March 2021.)