Online Grocery’s Competitive Analysis
Peapod, Fresh Direct, Walmart, and local online grocery are the top competitors 1. Peapod
Peapods, which was founded in 1989, hold the most shares in the online grocery industry with 5.8 percent. The company has presence on 14 states, offers more than 8,000 products, and serves to more than 350,000 customers annually. The customers are various, but typically are dual-income couples or families. In 2012, Peapod introduced posters with pictures of foods and QR codes at selective rail station in Philadelphia. Curious passengers then scanned the particular foods that they wanted to order and had them delivered to their homes by the time they get back. This, and many other unorthodox approaches has made Peapod the number one competitor in this industry. 2. Fresh Direct
Fresh Direct is the second largest competitor in this industry in term of market share. Unlike Peapods, Amazon, and Walmart, this company only serves specifically to large metropolitan areas, for example: New York, and New Jersey. The company has served about 600,000 customers in those cities and currently expands to Philadelphia markets. Fresh Direct’s target markets are young professional with higher disposable income. The company strategy is to constantly come up with new products to satisfy the target market, one example is the ready-to-served meals that deliver to customer houses in a couple of hours. 3. Walmart
Walmart recently decided to make its appearance in the online grocery industry. It targets to consumers, who care not only the convenience factors but also the value of the products. What makes Walmart a threat to Amazon is the well-known logistic distribution, and the number of warehouse and stores across the U.S. that it possesses. 4. Local Online Groceries.
Even though big brand names like Peapod, Fresh Direct, Walmart and Amazon are the major players in this industry. However, together they only hold less than 20% of the market share in...
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