Brand and Online Grocery

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CASE STUDY REPORT FreshDirect Online Grocery Store BACKGROUND/HISTORY FreshDirect is an online grocer that provided 100% fresh foods to locations near you and to your front door. It allows you to order your food online and delivery of your food will come the next day. The primary business of FreshDirect to is provide healthy fresh foods for you to shop online without going to the grocery store. FreshDirect key players would be the founders of the company, Joseph Fedele and Jason Ackerman (CEO). FreshDirect started off in New York City about six years ago and is growing and profitable. So far this year, the company 's CEO Rick Braddock, says that in the first few weeks of 2010 his company has been growing at an…show more content…
* Another big threat for FreshDirect that; early 2007 NYC government proposedcongestion charges for traffic entering into Manhattan. * Local stores or distributors also make a strategy for delivery perishable productsto the customers. * Rising of fuel price may also a potential threat on FreshDirect; and penaltiesoccurred from parking violation has also big pressure on FreshDirect. * FreshDirect visible cardboard boxes are also environmental threat. * FreshDirect trucks parked in big city streets had made the traffic congestionproblems worse. * The rival of FreshDirect may adopt the advanced food technology softwaresystem. ANALYSIS VIA PORTER’S FIVE FORCES MODEL It is important to analyse the competitive nature of the online grocery industry in order toassess the position of FreshDirect. The Portert’s 5 Forces tool will enable to makestrategic decisions in orders to increase profitability. Threat of New Entrants The new entrants requires a big capital, experience, understanding the advance technology system, learning online grocery and access to suppliers and distributors (Low). Threats of Substitue The local suppliers, distributors and corner stores are other options of customers to buy fresh food. But FreshDirect is familer of its brand name, and mostly customer are loyal with FreshDirect. Power of
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