Case Study Report: Fresh Direct
Case Study Report
COMPANY INFORMATION Fresh Direct, www.freshdirect.com, Long Island City, New York, Online Grocer
BACKGROUND STORY Fresh Direct offers a 100% satisfaction guarantee to their customers. They take pride in delivering foods from the farm to the table in a quick, precise and quality manner. Fresh Direct was started in 2001 by Joseph Fedele and Jason Ackerman in the New York area. The company set very high quality standards and staffed their 300,000-square-foot production facility with the highest trained personnel. The result was very fresh perishable items (the company’s specialty) and low prices. Fresh Direct was able to keep prices low by “completely eliminating the middleman and not accepting any slotting allowances” (Dess, 2012). The quality of Fresh Direct’s food was accomplished by buying local, in-season fruits and vegetables and keeping all items at a desirable temperature. The production facility is equipped with a software system that controls everything done at the facility. If temperature ranges need to be changed, they can be done so in the control room. Staff on the facility floor will be alerted by a monitoring system if any temperatures fall out of range. The result of this diligence to quality is seen by the company’s growth and revenue over the past 12 years. The Fresh Direct mission is to help customers lead healthy lives without compromising their busy schedules.
SWOT ANALYSIS STRENGTHS | WEAKNESSES | * High quality of products * Expert and well trained staff * Local produce suppliers * Exceptional manufacturing software * Large customer base within a small radius | * No middleman- company must do all purchasing and selling within itself * High cost to run business (purchasing, staffing, warehouse, delivery) * 2 hour delivery window | OPPORTUNITIES | THREATS | * Combine with businesses in the catering industry to expand on Fresh Direct At The Office * Advertise At The Office
COMPANY INFORMATION Fresh Direct, www.freshdirect.com, Long Island City, New York, Online Grocer
BACKGROUND STORY Fresh Direct offers a 100% satisfaction guarantee to their customers. They take pride in delivering foods from the farm to the table in a quick, precise and quality manner. Fresh Direct was started in 2001 by Joseph Fedele and Jason Ackerman in the New York area. The company set very high quality standards and staffed their 300,000-square-foot production facility with the highest trained personnel. The result was very fresh perishable items (the company’s specialty) and low prices. Fresh Direct was able to keep prices low by “completely eliminating the middleman and not accepting any slotting allowances” (Dess, 2012). The quality of Fresh Direct’s food was accomplished by buying local, in-season fruits and vegetables and keeping all items at a desirable temperature. The production facility is equipped with a software system that controls everything done at the facility. If temperature ranges need to be changed, they can be done so in the control room. Staff on the facility floor will be alerted by a monitoring system if any temperatures fall out of range. The result of this diligence to quality is seen by the company’s growth and revenue over the past 12 years. The Fresh Direct mission is to help customers lead healthy lives without compromising their busy schedules.
SWOT ANALYSIS STRENGTHS | WEAKNESSES | * High quality of products * Expert and well trained staff * Local produce suppliers * Exceptional manufacturing software * Large customer base within a small radius | * No middleman- company must do all purchasing and selling within itself * High cost to run business (purchasing, staffing, warehouse, delivery) * 2 hour delivery window | OPPORTUNITIES | THREATS | * Combine with businesses in the catering industry to expand on Fresh Direct At The Office * Advertise At The Office
References: Dess, G. (2012). Strategic management text and cases. (6th ed.). New York, NY: McGraw-Hill Irwin. Retrieved from http://devry.vitalsource.com/ Santhosh. (2012, APRIL 11). Porter 's five forces powerpoint template. Retrieved from http://stunningpresentations.com/porters-five-force-powerpoint-template-free/