Fresh Direct Swot Analysis
BUSN412
November 18, 2012
Fresh Direct, www.freshdirect.com, Retail Industry
Background History
Fresh Direct is an online grocer. They provide high quality fresh foods and household goods at unbeatable prices to the New York area. Their specialty is to delivery good quality items at affordable prices. Fresh Direct was stated in July 2001 by John Fedele and Jason Ackerman. While both men were CEO’s of the company at one time, the current CEO is Richard Braddock. Since he has been CEO the company has generated more than $150 million in annual sales. This is his fourth year serving as CEO and eleventh year the company has been in business. They operate out of Long Island City. Fresh Direct, delivers to a limited area from a warehouse …show more content…
The strategy is substantial because the customers are happy. This has been a success for them. Fresh Direct has eliminating the middle man, allowed customer to make specific orders and given them the ability to choose the type of cut on their meat. These are options that are not available at the majority of grocery stores. The customers are even satisfied with the limitations on items and smaller portions for better pricing. This could be done with other companies that are small and have loyal customers. * Overall Cost Leadership….. Online grocery store which reduces the amount of staff needed to operate a physical grocery store, no cost for paper, smaller warehouse, and direct bargaining with the supplier with no middle man. * Differentiation…. Fresh Direct brands are very unique and their customers appreciate that. The customers have the ability to get products made to their specifics. Also their state of art facility sets them aside from the rest. * Focus…. Fresh Direct enjoys offering their customers low prices. They have to put limitations on many products to do this. Their smaller portion sizes are a contributing factor as well. They give their customers what they
November 18, 2012
Fresh Direct, www.freshdirect.com, Retail Industry
Background History
Fresh Direct is an online grocer. They provide high quality fresh foods and household goods at unbeatable prices to the New York area. Their specialty is to delivery good quality items at affordable prices. Fresh Direct was stated in July 2001 by John Fedele and Jason Ackerman. While both men were CEO’s of the company at one time, the current CEO is Richard Braddock. Since he has been CEO the company has generated more than $150 million in annual sales. This is his fourth year serving as CEO and eleventh year the company has been in business. They operate out of Long Island City. Fresh Direct, delivers to a limited area from a warehouse …show more content…
The strategy is substantial because the customers are happy. This has been a success for them. Fresh Direct has eliminating the middle man, allowed customer to make specific orders and given them the ability to choose the type of cut on their meat. These are options that are not available at the majority of grocery stores. The customers are even satisfied with the limitations on items and smaller portions for better pricing. This could be done with other companies that are small and have loyal customers. * Overall Cost Leadership….. Online grocery store which reduces the amount of staff needed to operate a physical grocery store, no cost for paper, smaller warehouse, and direct bargaining with the supplier with no middle man. * Differentiation…. Fresh Direct brands are very unique and their customers appreciate that. The customers have the ability to get products made to their specifics. Also their state of art facility sets them aside from the rest. * Focus…. Fresh Direct enjoys offering their customers low prices. They have to put limitations on many products to do this. Their smaller portion sizes are a contributing factor as well. They give their customers what they