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Overview
One sector that has witnessed significant changes during the last two years is the grocery sector. Supermarkets and firms had to be creative in ensuring that consumers continued to get access to products. A growing innovation has been in the home delivery sector targeting Australia's $100bilion grocery sector. Various fast delivery start-ups that use Apps have emerged in Australia. For example, Voly and Milkrun are competing for market share with various other service providers such as Coles and Woolworth's home delivery channels and traditional delivery platforms such as UberEats, and Doordash who have joined this lucrative sector. Assume there is potential for other new start-ups to enter this sector considering evolving consumers' familiarity with these services during Corvid.
Your task
Assume you have been appointed as a consultant to a new start-up planning to enter this sector in a post-Covid era where the competitive boundaries and consumer behaviour have evolved. Your challenge is to advise the new start-up by addressing the following questions.
Question is:
Identify the key challenges your client (the new start-up) will face in establishing a competitive advantage and gaining market share against established players in this sector.
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