Fresh Direct

In September of 2013 it was reported by the BBC that Tesco ‘offloaded’ the Fresh and Easy name not long after it filing for bankruptcy: (http://www.bbc.co.uk/news/business-24040346)

FreshDirect was found in 1999 by Jason Ackerman, Steve Druckman and Joe Fedele as an online alternative to traditional grocery stores. The company specializes in delivering a variety of over 3,000 items such as fruits, vegetables, seafood, prepared entrees and sides, coffee, meat products, deli and cheese products, and bakery items (Goldberg, 2010). The company provides same day and next day delivery to over 600,000 customers in New York

Global competition has a direct impact on Wal-Mart. Global companies offer competition for consumer business and companies within the United States and other countries who compete with Wal-Mart. The global competition for consumer business primarily takes place in the e-commerce domain that Wal-Mart dominates. Wal-Mart offers their consumers a convenient one-stop website with all the merchandise and products offered in the store, and some that are not. The exchange is significantly sped up by the convenience and availability of the internet. The internet allows transactions to take place at a faster pace than the standard face-to-face or telephone method. Target, a major competitor of Wal-Mart, also has a Website that is reached by consumers all over the world. This added competition, especially from a competitor in the same industry, forces Wal-Mart to keep their prices low while offering

According to the report, tax, financial, and zoning incentives have been offered to attract supermarkets to low-income areas since 2009 via a program called FRESH – Food Retail Expansion to Support Health. The FRESH program was established after a 2008 report “Going to Market: New York City’s Neighborhood Grocery Store and Supermarket Shortage” confirmed that there was a shortage of supermarkets in NYC mostly because there is no space available to build and low-income neighborhoods, where many NYCHA properties are, is where supermarkets are needed the most. Also, zoning prohibit stores larger than 10,000 feet from being built without special permits and public review. For perspective, the definition of a supermarket shortage is helpful and is when there is less than 3 square feet of supermarket floor space per capita.

In 2007, Jeff Bezos decided to ‘attack’ the online grocery delivery business by starting AmazonFresh. He started the business in the neighbourhoods of Seattle and by 2012 had spread to other Seattle communities. From June 2013, AmazonFresh is available in some Los Angeles zip codes.

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).

In technological factor and sociocultural factor, as grocery delivery should become a new trend, Whole Foods also respond to this by applying online grocery shopping even though they are a little slow responder compared to their competitors. Whole Foods appears to have the ideal customer base which can benefit from such a service as its shoppers tend to be high-income, urban, and willing to spend a few extra dollars to save time. This could benefit Whole Foods if they can figure the aggressive and effective way to develop this. The most successful new promotion may be its digital coupons, a program that was launched on January 28th. Daily downloads of the Whole Foods app jumped up to 5 times in the period after the coupons were introduced.

Buyer Power: As GCO's products aren't any different from the products sold by other online sellers and local brick-and-mortar stores, it was unable to establish a brand images and to bound buyers to give up other substitutes for their proprietary products. Also, since the majority of buyers are only purchasing to the extent that to satisfy their household demand, their demands in volume are rather small and may be easily satisfied by any normal sized food retail competitors of GCO. These two factors together have provided the buyer a strong power in negotiation with GCO as well as many other food retailers. This fact is further strengthened by the fact that there is literally no switching costs in switching retailers as all the buyers would have to do is to go to another potentially more distant store and incur little additional gas expense.

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CCPC introduced a new product September 1, 2009 called Fresh & Bright. Part of CCPC's marketing campaing was to "drop" appromixamatly 500,000 coupons in the Sunday newspaper where Fresh & Bright was sold. The coupon worked in the following way:

Fresh Direct is a New York online grocery firm aiming to offer higher quality food with the best price which is 10-15% less than the local competitors and home delivery.

HelloFresh is a subscription mail order fresh food delivery service. This company provides ingredients for entire meals in refrigerated boxes with recipes, eliminating the need for consumers to grocery shop or meal plan. Also, these meals are properly proportioned to serve a specific number of people. Therefore, fresh ingredients are being used to prepare healthy, well-portioned meals. This concept promotes good eating habits and an appreciation for well-made food.

By using the inventory based model this company stands out from competition amongst the other E grocery business as the customers know availability of product “online” unlike other hyperlocal models where company have to ask their local supplier for the availability of certain products. Company has also provided many options to pay for order such as pay online using debit or credit card or pay by cash / Sodexo on delivery.

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Fresh Direct is a company that allows you to order your food online and get next day delivery, their motto is “Our Food is fresh; our customers are spoiled….. Order on the web today and get next-day delivery of the best food at the best price, exactly the way you want it with 100% satisfaction guaranteed.” The primary business is to allow customers to order their food online and avoid going to a grocery store they can buy anything they want online and you can have it delivered to your house. Key players would be the people who launched the business in 2001 Joseph Fedele and Jason Ackerman. Many companies have fallen online with