Reference no: EM133299998

Value innovation is a process in which a company introduces new technologies or upgrades that are designed to achieve both product differentiation and low costs. In assessing Blue Apron's current offerings and evaluating areas where they can create new value, we determined that the biggest area of opportunity lies in its delivery model. As already mentioned, Blue Apron is pretty expensive, however, the company invests in the quality of their products and meals and thus, customers are willing to pay the higher prices. However, after reading through some of the feedback from customers, it can sometimes take longer than expected to receive their boxes which can be frustrating when counting on them for meals. We believe that Blue Apron could further expand and drive value for its customers by partnering with other retailers such as Amazon, Target, and other large grocery chains. With Amazon's partnership, Blue Apron would be able to take advantage of their vast distribution centers and ability to quickly deliver the boxes to customers much faster than traditionally offered. If the boxes were more readily available in brick and mortar stores, customers could pick them up as they choose instead of waiting for the weekly delivery. Additionally, stores that offer delivery services such as Insta Cart would allow customers who prefer to stay out of a grocery store to still have their boxes delivered to them in a much faster manner. With Blue Apron's current services, customers have to plan ahead and really decide whether or not they want to receive a box. However, if the boxes are carried by retailers who could deliver them same day or overnight, customers may be more willing to purchase more boxes exactly when they want them - especially in a society that favors an instant gratification mindset. Since Blue Apron's inception, the company has done a fantastic job with growing their offerings outside of the core business product. Not only have they expanded from a traditional meal box to Wellness, Family Friendly, Fast & Easy, and Plant based packages, but they have also begun offering wine subscriptions. This diversification strategy is already serving them well, and we recommend that they can take this a step further by offering cookware and kitchen supplies. Given that Blue Apron is a service that requires customers to do the actual cooking, some might be hesitant to use the service if they feel they don't have all the right cookware or bakeware. It can be frustrating to be in a kitchen and not have the right items to cook with. Customers may try the service and switch to other food delivery services such as Uber Eats if the cooking itself becomes too complicated. Blue Apron could take this two ways. The first option would be to offer various cookware and kitchen items a la carte style where customers can pick and choose what they are missing from their own kitchen. The second option would entail curating a kitchen supplies package of various kitchen supplies that can be easily used for a whole new meal kit program that only requires the use of the items in that package. That way when customers order a Blue Apron box, they never have to worry about not having the right tools to cook their meals. They could even partner with companies like Pottery Barn or Crate and Barrel if they don't want to have to manufacture their own line of products. Based on the information provided above, please answer the following question. Do they have the resources to implement your recommendations above? If not, how can they develop them or acquire them? With whom would you suggest they ally or with whom should they merge? Justify your choice of alliance over merger and vice versa.