Brand and Online Grocery

Topics: Brand, Grocery store, Supermarket Pages: 6 (1399 words) Published: August 25, 2013
CASE STUDY REPORT

FreshDirect
www.freshdirect.com
Online Grocery Store

BACKGROUND/HISTORY
FreshDirect is an online grocer that provided 100% fresh foods to locations near you and to your front door. It allows you to order your food online and delivery of your food will come the next day. The primary business of FreshDirect to is provide healthy fresh foods for you to shop online without going to the grocery store. FreshDirect key players would be the founders of the company, Joseph Fedele and Jason Ackerman (CEO). FreshDirect started off in New York City about six years ago and is growing and profitable. So far this year, the company's CEO Rick Braddock, says that in the first few weeks of 2010 his company has been growing at an accelerating rate compared to 2009, when it generated more than $250 million in revenue. According to Braddock, the privately held company has been "been profitable since 2008 and was substantially profitable in 2009." Since an online grocery service can obviously not allow you to feel if an avocado is just right, or if a tomato is too soft, FreshDirect has developed others ways to help its customers buy groceries. The services offers features such as a star rating feature so that customers will know, for example, how fresh the produce is that they're ordering. The rating system is developed by a team of inspectors who rate produce daily for color, taste, firmness and ripeness. FreshDirect also offers the same five-star rating service for seafood and some 50% to 70% of its customers use that feature. http://www.dailyfinance.com/2010/03/23/growth-matters-freshdirect-nudges-its-way-to-profits/

SWOT ANALYSIS
Based on the above SWOTanalysis of FreshDirect this research of information can help make necessary improvements to the company’s growth. The analysis channels on each area to see what is needed to be improved or changed.

STRENGHTS
 
* FreshDirect had strong financial assets.

* FreshDirect is a powerful online grocery brand; it has reputation of low price withhigh quality.  
* FreshDirect used advance food technology software system.  
* FreshDirect had strong relationships with local stores and its distributors.

* FreshDirect approach is very innovative; its products have differentiation withrivals.

* FreshDirect have excellent customer services.
 
* FreshDirect¶s warehouse had 12 separate temperature zones, ensuring that eachpiece of foods kept as it optimal temperature.  
* FreshDirect had extremely high standard for cleanness, health and safety.

* FreshDirect had refrigerated loaded trucks that keep their foods fresh.

 WEAKNESSES
 
* FreshDirect sold perishable and they had not attentions customer demandingabout un-perishable products.  
* They are only focusing selected zips area of New York and have not expandedmarket strategy.  
* FreshDirect is on depended on a main competitive advantage, the retail of perishable products. This could make them slow to diversify into other sectors(un-perishable products).  
* The senior management of FreshDirect had continually changed that make slowor delay on the work progress. They are now their 4th CEO.  
OPPORUTNITIES
 
* FreshDirect had reputed brand name and its customers are highly trusted onFreshDirect products.

* FreshDirect may expand their business local, national or international level.

* FreshDirect may also start delivery of un-perishable products along with itspopular perishable products.

* FreshDirect to take over, merge with, or from strategic with other global groceryretailer, focusing on specific market, such as Europe or the UK.

THREATS
 
* Whole Foods, the Austin, Texas based supermarket chain with the organic healthfood focus, had already threatened FreshDirect¶s sale in Manhattan.

* Trader Jo¶s another specialty food retailer was also opening a store in downtownunion square, prime territory for FreshDirect.

*...
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