Fresh Direct Case Study Essay
Case Study Report
COMPANY NAME/WEBSITE/INDUSTRY
FreshDirect, https://www.freshdirect.com, FreshDirect an online grocer that delivers to residences and offices in New York City metropolitan area. Also offering next day delivery to most of Manhattan and parts of Brooklyn, Queens, The Bronx, Staten Island, Nassau County, Westchester County, Fairfield County, Hoboken, Jersey City, New Jersey, and Philadelphia.
BACKGROUND/HISTORY
FreshDirect was launched in July 2001. Cofounder and former chief executive officer Joseph Fedele, Joseph Fedele was able to bring a wealth of experience in New York City’s food industry to FreshDirect. In 1993 Joseph Fedele cofounded Fairway Uptown, a 35,000 foot supermarket located on West 133 Street in Harlem. …show more content…
However as the case listed FreshDirect went through many CEO changes. Which isn’t always a great thing but since FreshDirect was growing so much, so quickly there was in need of changes to happen. "Cofounder Joseph Fedele had remained CEO until January 2004, when cofounder Jason Ackerman succeeded him in that position. Since then, FreshDirect has experienced multiple CEO changes. Jason Ackerman stayed as CEO of FreshDirect for a little over seven months, until Dean Furbush succeeded him in that position in September 2004. Ackerman remained vice chairman and chief financial officer. The tenure of Dean Furbush lasted a little over two years. Steve Michaelson, president since 2004, replaced Furbush as the CEO of FreshDirect in early 2007.9 In 2008 Michaelson left for another firm, and FreshDirect’s chairman of the board, Richard Braddock, expanded his role in the firm and took over as CEO." (Strategic Management 2012)
FreshDirect main promise when opening was “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 percent satisfaction guaranteed.” Since FreshDirect is still in business and still improving since when they first opened they have not changed their main mission which was to prides itself on sourcing the highest quality food and freshest ingredients available for their customers …show more content…
Also another issue that was a concern for the company was the volitions for parking that the company got, and blocking traffic in the city when delivering. FreshDirect had to pay for them, along with many boxes that were wasted when boxing everything different for each customer, there was no way for customers to return the boxes to the company for proper recycling.
COURSE OF ACTION RECOMMENDED Since the company is already doing well there is only a few things I would change. I would first lower the prices for delivery since many people will find that high, and along with that give discounts on separate bulk orders so it is like a wholesaler such as Sam’s or Costco or even BJ’s. If that is done, and shipping prices are reduced then they would not have to worry about Amazon and even Walmart effecting their business that are larger markets that could hurt the business.
COMPANY NAME/WEBSITE/INDUSTRY
FreshDirect, https://www.freshdirect.com, FreshDirect an online grocer that delivers to residences and offices in New York City metropolitan area. Also offering next day delivery to most of Manhattan and parts of Brooklyn, Queens, The Bronx, Staten Island, Nassau County, Westchester County, Fairfield County, Hoboken, Jersey City, New Jersey, and Philadelphia.
BACKGROUND/HISTORY
FreshDirect was launched in July 2001. Cofounder and former chief executive officer Joseph Fedele, Joseph Fedele was able to bring a wealth of experience in New York City’s food industry to FreshDirect. In 1993 Joseph Fedele cofounded Fairway Uptown, a 35,000 foot supermarket located on West 133 Street in Harlem. …show more content…
However as the case listed FreshDirect went through many CEO changes. Which isn’t always a great thing but since FreshDirect was growing so much, so quickly there was in need of changes to happen. "Cofounder Joseph Fedele had remained CEO until January 2004, when cofounder Jason Ackerman succeeded him in that position. Since then, FreshDirect has experienced multiple CEO changes. Jason Ackerman stayed as CEO of FreshDirect for a little over seven months, until Dean Furbush succeeded him in that position in September 2004. Ackerman remained vice chairman and chief financial officer. The tenure of Dean Furbush lasted a little over two years. Steve Michaelson, president since 2004, replaced Furbush as the CEO of FreshDirect in early 2007.9 In 2008 Michaelson left for another firm, and FreshDirect’s chairman of the board, Richard Braddock, expanded his role in the firm and took over as CEO." (Strategic Management 2012)
FreshDirect main promise when opening was “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 percent satisfaction guaranteed.” Since FreshDirect is still in business and still improving since when they first opened they have not changed their main mission which was to prides itself on sourcing the highest quality food and freshest ingredients available for their customers …show more content…
Also another issue that was a concern for the company was the volitions for parking that the company got, and blocking traffic in the city when delivering. FreshDirect had to pay for them, along with many boxes that were wasted when boxing everything different for each customer, there was no way for customers to return the boxes to the company for proper recycling.
COURSE OF ACTION RECOMMENDED Since the company is already doing well there is only a few things I would change. I would first lower the prices for delivery since many people will find that high, and along with that give discounts on separate bulk orders so it is like a wholesaler such as Sam’s or Costco or even BJ’s. If that is done, and shipping prices are reduced then they would not have to worry about Amazon and even Walmart effecting their business that are larger markets that could hurt the business.