Freshdirect Paper

Topics: Online shopping, Grocery store, Supermarket Pages: 5 (1537 words) Published: November 17, 2012

FreshDirect is an online grocery store, which is founded in 2001 by Joseph Fedele and Jason Ackerman. FreshDirect has five districts in New York City, as well as some areas in the state of New Jersey and Connecticut to conduct business, which offers online grocery shopping and delivery services to more than 300 zip codes, also offers pickup services at its Long Island City facility. FreshDirect cargo truck now has become one of the hallmarks of the Manhattan area. With its strong customer tracking service system, FreshDirect becomes one of the most successful online grocery stores in North America. As Joseph Fedele and Jason Ackerman claim that FreshDirect is the new way to shop for food, which could bring a lot of convenience to customers, and also promise that their products are at higher quality with lower prices. In all, the mission of FreshDirect is not only to give the customers the best food and service, but also committed to helping customers to save time in stores.

General Environment
Focus on the future, the general environment dimensions have this order of importance: economic segment (opportunity), technological segment (opportunity), demographic segment (opportunity), sociocultural segment (opportunity), global segment (threat), and political/legal segment (threat).The top three segments for FreshDirect are demographic, technological, and economic. FreshDirect has great opportunity to sell their products to people through the internet, and online techonogical segment attract lots of customers who prefer to be convenient. On the other hand, FreshDirect also has threat to limit their shipping service area which is note service for international and other states.

Economic segment (opportunity):
Economics always play an significant role in an company, bring shows the profits and development of this company. As early as in 2003, it has succeeded in financing the $31 million which included $15 million supported by the American International Group. Under the leadership of CEO, FreshDirect has five districts in New York City, as well as some areas in the state of New Jersey and Connecticut to conduct business. In 2010 FreshDirect claimed revenue of more than $250 million, which was number 70 in the internet retailer top 500 guide. Even though the general weakness in the world economy, and many businesses are doing not well in their industry. There is a great opportunity for the company because of the boom of economy in online shopping these years.

Demographic segment (opportunity):
The geographic distribution of FreshDirect is in New York City which has a large population. New York City a crowed place, and FreshDirect offers a full like of heat-and-serve meals prepared in the FreshDirect which is welcomed by customers. Moreover, FreshDirect also sells “restaurant-worthy” four minute meals which bring convenience to officers. In fact, the distribution areas of FreshDirect attract lots of customers. Firstly, four minute meals are a kind of fast food but more healthy, which attract lots of busy officers. Secondly, New York City is crowed, so that the delivery aspect has a lot of advantages than other markets. So the location is really important.

Technological segment (opportunity):
New technology, such as online grocery, plays an important role in recent society. As it shows that the total online grocery shopping sales were estimated to be about $8.4 billion in 2010, whichi is less than 2 percent of total grocery sales, and anaylst estimate it will become up to 10 percent in the following ten years. As time goes on, online grocery sales grow at a rapid pace, and more and more customers are accustomed to buy products online which bring them a lot of convenience. So online shopping technology of FreshDirect is an important opportunity. What is more, rating system of online products is a kind of technology which shows how popular the items are. From the rating aspect, those four stars rating...
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