Essay on Week 3 Case Analysis

Submitted By reydel1137
Words: 734
Pages: 3

COMPANY NAME/WEBSITE/INDUSTRY

Fresh Direct, Freshdirect.com, Food and Grocery

BACKGROUND/HISTORY

Fresh Direct is a company that allows you to order your food online and get next day delivery, their motto is “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.” The primary business is to allow customers to order their food online and avoid going to a grocery store they can buy anything they want online and you can have it delivered to your house. Key players would be the people who launched the business in 2001 Joseph Fedele and Jason Ackerman. Many companies have fallen online with the grocery service and they boldly stated they were the “greatest way to shop for food” this again was a bold statement in many of these chains have fallen. Company launched in 2001 and by 2011 you had to have an order of 30$ with a delivery fee associated with it. The company started to fall apart when the competition start to raise in the industry that is when they started offering local grown and organic but there were some fields they just couldn’t compete with.

SWOT ANALYSIS

Strength:
* Has strong financial assets
* Powerful online grocery brand
* Advanced food technology with software system
* Strong relationship with local stores and distributors
* Approach is very innovative
* Excellent customer service
* Warehouse had 12 separate temp zones
* Extreme high standard for cleanness
* Refrigerated loaded trucks to keep foods fresh
Weaknesses:
* Sold perishables and they had not attentions customer demanding
* They are only focused on selected zip codes
* Depends on a main competitive advantage
* Senior management keeps changing on 4th CEO
Opportunities:
* Had reputed brand names and its customers are highly trusted
* May expand their business
* Start delivery of imperishable products
* To take over, merge with, or form strategic goals with other online grocery stores
Threats:
* Wholes Food has already threaten food sales
* Traders Jo’s opening stores around their area * Visible cardboard boxes are environmental threat
* Trucks parked in big city streets have made congestion issues

ANALYSIS VIA PORTER’S FIVE FORCES MODEL

Threat of New Entrants:
The e new entrants requires a big capital, experience, understanding the advance technology system, learning online grocery stores and access to suppliers and distributors
STRENGTH: LOW
Threat of Substitute:
The local suppliers, distributors and corner stores are other options of the customer to buy fresh food. Fresh Direct is familiar of its brand name and mostly customers loyal to them
STRENGTH: LOW
Power of suppliers:
Fresh Direct has known by its brand its customers are loyal with its products. If the suppliers has its own good brand in the market they can easy access with local shops or supermarket, but they already have good…