Italy is an innovative economy. But in terms of technology, more support is needed for Eataly. Eataly’s drive for slow food consumption has indeed been driven through social media. However, more research backed up information on the internet would be useful for both its local sustainability and international expansions. Also, technology offers a differentiation point for companies (D’Ippolito & Timpano, 2016). Almost any food retailer can draw a crowd online for its food product sales. Eataly uses technology to motivate the consumer to become a responsible and aware consumer instead.
Eataly sources its food products from Italy. The Piedmont region is where wine, cheese and meat products are obtained. Similarly, different cluster regions for sourcing are identified for Eataly within Italy itself. The climate and the geography of the land are suitable for Eataly’s slow food movement.
Porter’s Five Forces
In terms of competitive rivalry, Eataly differentiates itself from its core competitors who run similar food marketplaces because of its slow food ideology. Fast food markets and fancy grocery markets all operate with a different ideology (Humphrey & Schmitz, 2002). Their focus is on driving numbers with respect to consumer sales, even if their focus is on selling quality food. Eataly brings food consumption to a more sustainable scale, which drives its consumers to buy only what is needed.
Supplier bargaining power is increased because the supply end is focused on product improvement and innovation. So, the supplier has more value to offer. The supplier focus furthermore is on sustainable sourcing and not demands being generated in the market. The bargaining power of customers is reduced as a consequence.
The threat of new entrants is reduced because Eataly pays attention to a social approach by connecting with local suppliers and understanding local customer health needs. The reduced supply chain and the knowledge gained in this operation cannot be imitated by new entrants (Miele & Murdoch, 2002). Threats of substitute products exist if one approaches Eataly sales with focus on the product only. Eataly however sells an ideology.
Eataly uses the blue ocean strategy. Focus of this strategy is increasing the overall value to the customer.
Value: Eataly indeed creates value as it sells an ideology and not a food product. The focus is on selling more than a food product. It creates awareness, knowledge and responsible consumers. An emotional experience about food is shared with the customer.
Resource: The resource can be considered rare and very few food retailers have this capability
Imitation: Imitability is low, as the basics of the ideology of “slow food consumption” is to make the food industry follow it. However, the Eataly work culture is difficult to imitate as it now has many years of experience with customers.
Organized: The Company is so organized that it manages its system, processes, policies and people to sustain in its strategy (Youssef et al., 2016).