Fresh Direct Case

In: Business and Management

Submitted By chaseb12
Words 706
Pages 3
What actions does FreshDirect need to take in order to keep growing and increase the online grocery market share in near and distant future?
Strengths
• High quality products with low prices
• Good revenues coupled with low overhead due to not having the costs associated with retail locations.
• FreshDirect’s state of the art warehouse with 12 separate temperature zones, ensuring each piece of food it kept at its optimal temperature.
• Expert staff providing excellent customer service.
• Efficient supply chain with the elimination of the middle man.
• Unique industry business model.
• Superior website.
• 5 star food quality rating system.
• Extremely high standards for cleanliness, health & safety. Weaknesses
• The majority sale in perishable items with very few options for un-perishables.
• Constant changes in senior management.
• Limited number of brands and sizes of packaged goods.
• Expensive start-up costs.
• The focus on only certain New York zip codes, with no market expansion strategy.
• The dependence on only one main competitive advantage in the sale of perishables.
• The use of multiple non-environmentally safe cardboard boxes in the packaging of delivered foods.

Opportunities
• Using their reputable brand name expansion of their business to other places locally and nationally.
• International expansion.
• Additional movement into the delivery of a variety of un-perishable items.
• Environmentally safe packaging and delivery methods.
• Strategic merger with other global grocery retailers.

Threats
• Competitors such as Whole Foods and Joe Traders moving into the FreshDirect neighbourhood.
• Other online grocers such as YourGrocer delivering bulk to customers’ homes.
• The increased costs of parking ticket violations, gasoline and congestion charges for inner city truck deliveries.
• Truck driver’s threats of…...

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