Fresh Direct Case Analysis
Fresh Direct http://www.freshdirect.com Online Grocery Store
BACKGROUND/HISTORY
In describing the company Fresh Direct, their primary business is an online grocery store that first began in 2001. Fresh Direct specializes in delivery services for your shopping needs in various zip codes in New York. The zip codes include: Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select areas of Staten Island, New Jersey, and Connecticut (www.freshdirect.com). The company currently holds over 600,000 customers on the direction of Jason Ackerman, the company’s Chief Executive Officer. Not only is he the CEO, but he is also the cofounder with Jim Manzi, the company’s chairman. In 2010, Fresh Direct claimed well over $250 million dollars. Fresh Direct set their goals high when they began, unfortunately their goals of reaching 5% were not obtained until 2011. The company had to gain more exposure and reach out to other states to reach their goal of 5%. However, the company had more problems in 2007 from their employees. Not only did they have to let go of employees due to immigration reasons, but employees made heavy complaints about their low wages.
SWOT ANALYSIS
Below are examples of the SWOT analysis showing internal strength, external weakness, external opportunity, and external threat?
Internal Strengths
Prices are very affordable making their competition’s customers come to them.
Internal Weaknesses
Since the company’s sales are all online, it may be a challenge to switch to retail.
External Opportunities
The population in New York is becoming over-populated, thus more online customers.
External Threats
When the interest rates increase, the consumer spending lowers in sales.
I
ANALYSIS VIA PORTER’S FIVE FORCES MODEL
Below the competitive environment is analyzed by listing the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services,
BACKGROUND/HISTORY
In describing the company Fresh Direct, their primary business is an online grocery store that first began in 2001. Fresh Direct specializes in delivery services for your shopping needs in various zip codes in New York. The zip codes include: Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select areas of Staten Island, New Jersey, and Connecticut (www.freshdirect.com). The company currently holds over 600,000 customers on the direction of Jason Ackerman, the company’s Chief Executive Officer. Not only is he the CEO, but he is also the cofounder with Jim Manzi, the company’s chairman. In 2010, Fresh Direct claimed well over $250 million dollars. Fresh Direct set their goals high when they began, unfortunately their goals of reaching 5% were not obtained until 2011. The company had to gain more exposure and reach out to other states to reach their goal of 5%. However, the company had more problems in 2007 from their employees. Not only did they have to let go of employees due to immigration reasons, but employees made heavy complaints about their low wages.
SWOT ANALYSIS
Below are examples of the SWOT analysis showing internal strength, external weakness, external opportunity, and external threat?
Internal Strengths
Prices are very affordable making their competition’s customers come to them.
Internal Weaknesses
Since the company’s sales are all online, it may be a challenge to switch to retail.
External Opportunities
The population in New York is becoming over-populated, thus more online customers.
External Threats
When the interest rates increase, the consumer spending lowers in sales.
I
ANALYSIS VIA PORTER’S FIVE FORCES MODEL
Below the competitive environment is analyzed by listing the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services,