Case Study Report Freshdirect Essays

967 Words Aug 6th, 2012 4 Pages
COMPANY NAME/WEBSITE/INDUSTRY
FreshDirect/www.freshdirect.com / Grocery

BACKGROUND/HISTORY
FreshDirect is an online grocer that delivers to residences and offices in the New York City metropolitan area. FreshDirect also offers next-day delivery to most of Manhattan and parts of Brooklyn, Queens, The Bronx, Staten Island, Nassau County, Westchester County, Fairfield County, Hoboken, New Jersey and Jersey City, New Jersey. The company was founded in July 2001 by Joseph Fedele and Jason Ackerman; FreshDirect pronounced to the New York area that it was “the new way to shop for food.” FreshDirect has had some problems through the years begin challenged by local grocery stores offering the same type of service and parking problems among a
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Through the years other stores have come into the picture using the same idea. Companies like Safeway, Amazon, Whole Foods, Peapod, and others are the new entrants. The bargaining power FreshDirect have over other companies is that they cater to a small area. (New York area only) The threat of substitute services has cause FreshDirect to change their thinking in order to keep up with demands. Companies like Whole Foods with their organic foods have cause FreshDirect to offer more organic foods. Local grocery stores have options of in store pick-up that where people can order the non-perishable food on-line, the store will pack the non-perishables and the customers can come in the store and go directly to the fruit and vegetable section and meat sections and pick out their food without having to explore the entire store. There is not too much competition in the industry in the New York area, its FreshDirect and the other stores trying to catch up.

STRATEGY USED
The strategies used to stay on top of the composition are what I like to call the “ear to the wind method”. This is when a company listens and watches what other companies are doing and try to stay one step ahead of them. Like in the event that Whole Foods selling the organic foods FreshDirect quickly started selling organic foods so that they don’t lose their customers that wanted that same type product. FreshDirect was successful in employing this method

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