Fresh Direct Case Analysis

974 words 4 pages
Fresh Direct Case Study Report
COMPANY NAME
Fresh Direct www.freshdirect.com Online Grocery Market
BACKGROUND /HISTORY
FreshDirect is an online grocery that conveniently sells and delivers fresh foods and popular household items, to certain residents of the New York City Area. This online grocery market offers organic, farm-fresh produce than most market places. It covers most of Manhattan and certain parts of The Bronx, Brooklyn, Queens, Staten Island and limited areas in New Jersey. Vice Chairman and CFO Jason Ackerman and cofounder Joseph Fedele first launched FreshDirect in the summer of 2001. This company’s goal was to capture around 5 percent of the New York City grocery market.

SWOT ANALYSIS
Strengths
• Convenience
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To capture five percent of New York City’s grocery market is no small task. However, by expanding their coverage area, this can create a high volume of traffic for their company. Also, by having stocking power of carrying a greater array of fresh food, with its bigger facility, it remains one step ahead of its competitors.

THE ISSUES AND CHALLENGES FACING THIS COMPANY
Competitors such as, Peapod, with savvy marketing strategy, may be a challenge in earning market share for FreshDirect. This competitor has found a way to reach customers in subway platforms, in Chicago busiest metro stations. PeaPod has turned subway platforms into supermarket isles. This virtual grocery, gives smartphone users quick access to their products while on the go. There is a potential for this innovating idea is quick to catch up in upcoming towns, where normally dominated by FreshDirect.com.

COURSE OF ACTION RECOMMENDED
If this company were to seek for my advice, I would recommend to keep investing in Information Technology. It is obvious that technology drives and it this is the forte of this company. However, I believe they need to come up with more innovating ideas to reach and gain capital in this competitive market. The ideas and strategies their competitors are executing such as, Peapod way to reach customers in the subway halls, is a pure ingenious way to reinvent the playing field.

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