Freshdirect Case Analysis

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EXECUTIVE SUMMARY: FreshDirect is part of this online supermarket chain that has proven to be disappointing and costly for some organisations that have entered the market. However, FreshDirect was launched in July 2001 with the view that consumers were after fresh products, at low prices, that could be delivered straight to there doors at convenient times. They have proven to the industry that their strategies and philosophy’s have led to success and consumer based growth within the industry. The analysis of the organisations internal environment through such tools as the value chain and the resource based analysis, has demonstrated some areas where they create value and more importantly, a competitive advantage. It creates its value…show more content…
The process that they use is a ‘make to order’ function, which means that meat, delicatessen and bakery items are produced specifically for the customer. Also, within the large facility there are a number of refrigerated rooms at specific temperatures to maintain the freshness for all types of meat, produce and other fresh groceries. They are all tested by there ‘in-house laboratory’ before distribution. Secondly, they create value through their outbound logistics, which is concerned with getting the product to the customer. They deliver to those individuals who reside in the city areas directly to their home. However, suburban customers are giving an additional service, they can be met at train stations or even their offices so that they can pick up and take home in a time-effective manner. The FreshDirect delivery trucks, that can hold up to 500 orders, handle the groceries with great care as they are installed with several refrigerators so the food is preserved for the trip. Thirdly, they create value through their marketing and sales approaches by advertising on billboards and commercials. Their commercials are very effective because they explain the problems of supermarkets and thus promote their advantages to outweigh the typical problems with supermarkets, like overpricing and overall freshness. They also promote to new customers $50 worth of free food on there first encounter with FreshDirect. Additionally their

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