| Abstract [eng] |
The main purpose of this master thesis is to examine the impact of innovative business models, especially the implementation of e-commerce, on the financial performance of existing traditional food retail companies in Lithuania. The inspiration for this study comes from the significant growth of e-commerce in the grocery sector, especially during the Covid-19 pandemic, and the fierce competition in the market. The research question focused on impact of the integration of e-commerce on the business performance of traditional food retail companies compared to the rest of the grocery retail market in Lithuania. The existing literature recognizes the potential benefits of innovative business models, including enhanced competitiveness, improved business performance, and innovation capabilities. However, conflicting results remain regarding the direct effects of implementing such models. Furthermore, there was lack of studies that specifically focused on the Lithuanian retail market and implemented innovative solutions. To address this issue, the study conducts a comparative analysis of financial indicators (sales growth, productivity, EBITDA, ROS, ROA) between companies with e-commerce integration and the rest of the grocery market in Lithuania. Financial data from official Lithuanian databases are used. The results indicate a positive impact on most financial metrics for companies that incorporate e-commerce, indicating better performance in sales, EBITDA, ROS and ROA compared to the rest of the food retail sector. However, productivity shows a negative trend. Notably, the financial performance of standalone e-commerce startup companies is not profitable during the analyzed period, suggesting that it may take time to realize overall benefits of e-commerce business models. Conversely, collaboration between large companies and e-commerce startups or acquisitions appears to result in better performance. The study also addresses limitations, including data discrepancies and the need for more detailed operational measures. It emphasizes the specificity of the analysis for the Lithuanian grocery retail market, the impact of external factors, and the need for continuous innovation in the volatile retail business. In conclusion, this thesis provides valuable insights into the impact of e-commerce on the financial performance of traditional food retail companies. It suggests practical considerations for companies seeking to integrate innovative business models and calls for further research to address existing limitations and improve understanding in this evolving area. |
