SWOT Analysis Online growth consumers are becoming more using of online platform for ordering Pricing can price lower with the lower cost of space Unique products can customize Case file analysis freshdirect such as section of chicken wanted or cuts of meat Delivery to customers in select markets, saving driving cost, carrying distances, and time for customers Reduced labor costs.
FreshDirect faced both operational and growth challenges. This is a positive for FreshDirect. Geographic factors would limit competition. This industry analysis helps determine the competitive environment. It also has a fast industry growth rate, when this happens it means that they are less likely have competition because the total industry size is also growing.
I do wonder about the high turn-over for the upper-management in this company. Senior management is a major concern; they have a high a turnover rate. Fast industry growth positively affects FreshDirect. There is low cost to switch suppliers, and volume is critical to suppliers.
There is limited buyer choice with FreshDirect, though, so they do end up paying more the choices that are available to them. This still private company offers delivery to many New York City suburban areas saving consumers time in the form of traveling to a brick and mortar grocery storemoney in the form of a decrease in parking tickets, and ordering food at the cheaper cost in some cases than the brick and mortarand energy less gas consumption.
Bargaining Power of Suppliers There is a high competition among suppliers, when this happens this reduces prices to producers. The employees are doing their jobs well. I would also suggest that FreshDirect find and implement new environmentally safe packaging methods for their deliveries.
The substitutes have lower performance, so customers are less likely to switch. They have a low dependency on distributors, and the products are very important to the buyer. There is also a limited number of substitutes, so this is a positive for FreshDirect. Online grocer Company website: There is also the rising cost of fuel to consider.
Both these minds together in tandem allowed the formation of this company. With the barriers on entry relatively low in the online grocery industry, how much risk does FreshDirect face with new competition that can easily move into the market and snatch up what is already an overall low market share?
All of these are putting pressure on FreshDirect on their ability to achieve their profit levels. Threat of Substitute Products and Services No competitor substitute offers this degree of perishable goods.
The company also must address the parking charges that the trucks are causing.
The following is what has been determined as the forces facing FreshDirect and considerations for the business:Read this free Business Case Study and other term papers, research papers and book reports.
Freshdirect Case Analysis. FreshDirect, LLC was founded in and launched in by cofounders Joseph Fedele and Jason Ackerman. Fedele brought knowledge /5(1).
FreshDirect: Expansion Strategy case analysis, FreshDirect: Expansion Strategy case study solution, FreshDirect: Expansion Strategy xls file, FreshDirect: Expansion Strategy excel file, Subjects Covered Internet Internet marketing Process innovation Strategy Supply chain management by Timothy M.
Laseter, Debashish Chatterjee. Case Study: FreshDirect FreshDirect is the leading online fresh food and meals provider serving the metropolitan New York and New Jersey region. Splunk enables their administrators and developers to find and fix problems before. FreshDirect allows customers to place online orders (minimum of $30, with a delivery charge), and the customers order would be delivered during a prearranged two-hour window.
SWOT ANALYSIS STRENGTHS. Transcript of Fresh Direct. External Analysis Competitors Opportunities The strong Brand Name will be useful in the future They may expand local, national or even international New Products can be offered Cooperation can.
View Notes - Case Analysis: FreshDirect from BADM at Shepherd University. Ashley King BADM Case Analysis: FreshDirect The key success factors for FreshDirect are effective selling, cost%(3).Download