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Devry Busn412 Fresh Direct Case Analysis

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COMPANY NAME/WEB SITE/ADDRESS Fresh Direct/Freshdirect.com, this company is located in the New York City metropolitan area. Background History FreshDirect is an online grocery store that that provides shopping experiences and services to the vicinity population around the metropolitan area of New York (Dess, Lumpkin, Eisner, & McNamara, 2012, p. C125). Jason Ackerman and Joseph Fedele cofounded FreshDirect in 2001. FreshDirect serves thousands of customers around the New York area, and in 2010 it brought an approximate profit of over $250 million, demonstrating a surge of $20 million from the previous year (Dess et al., 2012, p. C126). The primary objective and goal of Fresh Direct was to acquire a minimum of 5% of the …show more content…

Older people|market it in my opinion. | |won’t move from the traditional way of buying produce. |Brick and mortar expansion, while this company sits in one location, | | |others are expanding and taking over the real-estate. | ANALYSIS VIA PORTERS FIVE FORCES MODEL In FreshDirect’s situation, there are only two powers that will significantly upset them. The danger of fresh’s competition that may bring more attracting products to the customers of FreshDirect and the risk of substitute goods and services. New establishments coming into the online business of produce face a great amount of challenges due to it being a relatively small source of services, people tend to go to their local markets rather than online. In addition, other factors that make it complicated is the startup fee and the ability to set a great business with a dedicated and intellectual workforce. A business entering the business-world, for pure purposes of increasing consumerism, would find it mostly difficult to produce sufficient income to shelter such life-threatening first expenses. Though, additional rivalry would arise from the already current superstores and online grocery markets. The risk of substitute goods and services

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