Freshdirect Case Analysis

An internal analysis’ purpose is very similar to that of an external analysis. Both are essentially developed to assist an organization build a successful strategy. Where they differ is that the external analysis focuses on the influential external elements; an internal analysis focuses on the internal forces. An internal analysis can unquestionably assist an organization drive up the profits aligning with internal matters. First, it is important to recognize what an internal analysis entails. In the course of this paper we will be looking into the key components that comprise this analysis. These components are StilSim’s value-chain, resources, core competencies, stakeholders, and finally their mission and vision.

The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99)

In order to conduct internal analysis of John Lewis Partnership, value chain analysis appears to be the most useful, it was used by Michael porter (1985). It is used to analyse activities performed by the business. It helps to maximise value

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).

“Competitive Advantage introduces the concept of the value chain, a general Framework for thinking strategically about the activities involved in any business and assessing their relative cost and role in differentiation”. Michael Porter, (1985).

In order for the strategy to be successful it should realistically assess the company’s internal resources. An internal analysis is used to identify the strengths of the company and identifies the weakness to overcome in the strategy. The internal analysis will help with understanding the internal issues that exist at StilSim by evaluating a value chain analysis, a resource analysis, core competencies and a stakeholder analysis.

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

Based out of Long Island City, Queens, FreshDirect was launched in July 2001, by Joseph Fedele and Jason Ackerman. It offers online grocery shopping and delivery service to over 300 zip codes in the Manhattan, Queens, Brooklyn, and surrounding areas. At the time of launch, there had been numerous other online grocery ventures that had ultimately met their demise. What made Fresh Direct unique was that it could offer grocery shoppers: “higher quality at lower prices.” It was able to do so because it had no retail location, which meant there was no rent to pay for retail space. In order to provide its customers with

Value chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. It is a systematic approach to examining the development of competitive advantage. The most basic breakdown of primary functions includes inbound logistics, operations, outbound logistics, sales and marketing and service. People should use the other models and frameworks within this software to further differentiate between, and add to, these domains. Product Innovation is one area that is not normally included in the de jure model but is often included in the de facto model. Value Chain Analysis describes the activities that take place in

An analysis of a firm’s internal environment can be completed through various methods. These methods are value chain analysis, three circle analysis, SWOT

FreshDirect on-line grocery was founded in 1999, by Joe Fedele, and Jason Ackerman. Started as an on-line option to traditional grocery stores, the company specializes in delivering a wide variety of about 5,000 items. Sales of such things as fruits, vegetables, seafood, prepared entrees and sides, coffee, meat products, deli and cheese products, and bakery items, are just a small part of what the company markets. The company provides same day as well as next-day delivery to

FreshDirect have advances online and food technology and had good knowledge in management but they are weak to deliver coverage and daily food usage products.

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

The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes. It is imperative for the organization to conduct an internal analysis

The internal business environment includes factors within the organisation that impact the approach and success of the business operations. Formerly presented as core competencies, capabilities, leadership style and culture of an organisation. To understand its sources of competitive advantage from within a firm or an organisation will implement specific tools such as SWOT analysis (Strength, Weaknesses Opportunities and Threats), Value chain analysis, Resource based view, VRIO framework and BCG Matrix for instance.