Freshdirect Case Study Report

1859 WordsMar 27, 20138 Pages
Fresh Direct Case Study Report Fresh Direct is a web-based supermarket that delivers fresh produce and meals to customers in New York City metropolitan area. Customers can order prepared meals from the website, www.freshdirect.com. Fresh Direct is in the online grocery store industry. BACKGROUND 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…show more content…
SWOT ANALYSIS FreshDirect has been able to succeed where many of its competitors in the online grocery market have failed, turning a profit. The success of the company required leveraging current technology and strategic logistics. However, FreshDirect incurred additional expenses such as fuel and tickets. Based on the external and internal environment analysis a SWOT analysis of FreshDirect lists the main problems and challenges being faced by the company. ANALYSIS VIA PORTER’S FIVE FORCES MODEL Analyze the competitive environment by listing the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services, and the intensity of rivalry among competitors in the industry (Chapter 2). Summarize your key points in a Figure. (25 points) FreshDirect is a relatively new entrant to the online grocery market and relies on Porter’s Five Forces. FreshDirect relies on bulk purchasing to pass the savings to its customers. The ability for the company to turn a large profit and attract investors has made concept attractive to new entrants. FreshDirect uses quality, price, logistics, technology, and strong stakeholders’ relationships as barriers to entry and competitive advantage. Because FreshDirect focus on providing ready-made meals and

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