Joseph Fedele the cofounder and former chief executive officer brought a wealth of experience to Fresh Direct the food chain in New York City.
Fresh Direct offers an online shopping and delivery service to more than 300 people that live in the zip code areas of several counties like, Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select areas of Staten Island, New Jersey, and parts of Connecticut.
Fresh Direct moto has a unique touch which elevates the quality of their food “Our Food is fresh, our customers are spoiled, Order on the web today and get next-day delivery of the best food at the best price, exactly the way you want it with 100% satisfaction guaranteed.” This moto is very eye catching to the consumers. This unique business will allow customers to order their food online which affords them the opportunity of having to go out to the grocery allowing them the opportunity to stay in the comfort of their own home and have the food of their choice delivered to their house. The company began to fall apart when the competition started to rise in the same industry, so Fresh Direct came up with the idea to do something a little different and they started offering local grown and organic foods but there were some fields they just couldn’t compete with. Let’s analyze some of the strengths, weaknesses, opportunities and threats that face this organization.
• Products with low prices and high quality arrangements
• Revenues with low overhead having to do with no cost associated with retail locations • A state of the art warehouse to ensure that certain foods are kept in the proper temperature zones • Professional staff with great customer service
• Not having to use a middle man
• Excellent record for cleanliness and a standard for health and safety Weaknesses
• Too many sales with perishable items and not enough options for un-perishables • Limited number of packaged goods
• They only focus on certain zip codes, with no market expansion strategy • The unsafe packaging of foods in cardboard boxes that are non-environmentally safe Opportunities
• Using their reputable brand name expansion of their business to other places locally and
internationally • Additional movement into the delivery of a variety of un-perishable items • Safer packaging for the delivery of their foods
• Strategic merger with other retail grocers globally
• Competition with stores like, Whole Foods and Trader Joes • The increased costs of, gasoline and congestion charges for inner city truck deliveries. Analysis via Porter’s Five Forces Model
• New components with a threat: This could make the start up cost expensive and new competitors could enter the marketplace (Low). Their experience and skills would have to be very high when it comes to online food services and they would have to have a large amount of capital. • Buyers with power: With the advancement in technology, the consumer has the power to purchase food on line (High). • Advanced technology: With the advancement in technology, people can purchase food easier on line, and people can also buy in stores which makes the market more competitive (Medium). • Suppliers power: Fresh Directs loyalty to their customers and their brand in merchandise allowed them to establish a great relationship with the people they already serve (Medium) • Power of substitution: The people who purchase from Fresh Direct are already familiar with their brand. Strategy Used
Fresh Directs strategy would be to increase their market share in the online shopping sector by growing at a faster rate than the average industry. The Issues and Challenges Facing this Company
The issues and challenges facing Fresh Direct would be among their competitors that are advancing into the online food industry with the technology,...
References: Cohan, P. (2010, March 24). Growth Matters: Fresh Direct Nudges Its Way To Profits. Retrieved from dailyfinance.com: http://www.dailyfinance.com/2010/03/23/growth-matters-freshdirect-nudges-its-way-to-profits/
"FreshDirect." FreshDirect. N.p., n.d. Web. 26 Jan. 2014. .
Goldberg, R. (2010, July 17). Crazy Business Ideas That Actually Worked: FreshDirect. Retrieved from minyanville.com: http://www.minyanville.com/special-features/articles/freshdirect-grocery-shopping-online-grocery-shopping/7/17/2010/id/29135
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