Outline And Grading Guide ( 150 Points )

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LaToya Bruns Case Study Report Outline and Grading Guide (150 points) COMPANY NAME/WEBSITE/INDUSTRY FRESH DIRECT WWW.FRESHDIRECT.COM ONLINE GROCERY STORE BACKGROUND/HISTORY Fresh Direct is an online grocery launched in 2001 that serves areas of New York. The CEO of Fresh Direct is Jason Ackerman, who happens to be the cofounder of the firm. The company’s original goal was to obtain five percent of the grocery industry in new York through ups and downs. Fresh Direct wasn’t able to do that until 2011 after they branched out to other states. There were mass letters of resignation because of the low wages and an immigration inspection in 2007 and the labor force dropped to almost half. Fresh Direct developed a four minute meal line in the…show more content…
The biggest threat to Fresh Direct is the advancement of other supermarkets like YourGrocer, NetGrocer, and Peapod to name a few. Porter 's Five Forces Model Threat of New Entrants Startup cost will be expensive. Fresh Direct puts a solid block on new companies that come into the grocery market. They have to have experience in the online arena and have a large capital as well as be highly skilled. Power of Suppliers Their brand and how loyal their customers are is what they are known for. They have a very unique operating strategy where they offer premium choices made by the customers themselves. They eliminated the middleman of Fresh Direct and suppliers. They can provide high quality at lower costs which has positively affected the revenues. Power of Customers The online buyers are very price sensitive. They don’t pay more costs for home delivery. Buyers have the ability to force down prices. It has become easy for people to purchase foods online with all the advances in technology but they have the opportunity to increase the market because you can buy products in stores too. Threat of Substitutes In comparison to Fresh Direct, the threat of substitutes rate is low. They offer high quality at lower prices which takes out the middleman. No other competitor in the market is offering perishable goods at high quality. Customers couldn’t switch or find a substitute from Fresh Direct. The threat of substitutes has affected them more

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