Go/no-go and entry plan for Google expanding into the grocery business

Should Google enter the grocery market? If you think it should, explain how it should go about it; if not, explain why not. ```hint Map the value chain first Before answering yes or no, list the steps of buying groceries, from planning a meal to receiving the bag, and mark where Google already has an advantage and where it has none. ``` ### Clarifying Questions - Does entering grocery mean selling groceries directly, or does any business in the space count, such as advertising, software or payments for grocers? - Is the decision about the United States first, or a global one? - What is Google's main objective: a new revenue line, defending its shopping search and ads, or more daily use of its consumer products? - How much appetite does leadership have for capital-heavy operations such as warehouses and delivery fleets? ### What a Strong Answer Covers - A clear objective for Google and the criteria the decision will be judged on - A view of the grocery market: its structure, margins, competitors and the shift online, with estimates labeled as assumptions - An honest assessment of Google's assets and gaps, and a comparison of the ways it could enter - A recommendation with a phased entry plan and the metrics that would confirm or reverse it - Risks such as conflict with grocers who are also Google advertisers, operational complexity and regulatory scrutiny ### Follow-up Questions - A large grocery chain that spends heavily on Google ads sees your plan as a threat. How do you respond? - Two years in, the pilot is well used but loses money. What do you look at to decide whether to continue? - Would your answer change in a market where most groceries are sold by small independent shops?