15 Fresh Direct
Teaching Notes
FRESHDIRECT, AS OF OCTOBER, 2004
Case Uses & Objectives
The FreshDirect case presents a strategy analysis and formulation problem in an entrepreneurial e-business environment. It provides students with a case that contains all the elements necessary to lead them through a course overview in a practical real-world setting. This case can be used to augment discussions of strategic analysis, specifically both internal and external environmental analysis (Chapters 2 & 3 in Dess, Lumpkin & Eisner); and strategic formulation, specifically business level strategy (Chapter 5), and e-business (Chapter 8), with an additional focus on strategic implementation, specifically entrepreneurial development (Chapters 12 & 13).
The case moves students towards two specific questions. First, there is the question of how FreshDirect has used industry analysis to examine their industry’s general environment plus the competitive impact of suppliers, buyers, threats of new entry, substitutes and rivalry. Second, based on this strategic analysis, is an assessment of FreshDirect’s choice of a competitive e-business strategy: 1) differentiation within the grocery industry based on service quality, and 2) cost leadership in their warehouse operations. Overlaying these basic questions is the nature of the entrepreneurial environment and to what degree the FreshDirect owners are capitalizing on their resources, expertise and entrepreneurial ambition.
The case is written in a style that overviews the situation but intentionally avoids guiding students through any analytical framework or specific application question. In so doing, it provides the instructor with the latitude to adjust class discussion and thereby accommodate the abilities of a wide-range of students. Specifically, the instructor can invite students to reason through a situation where uncertainty exists and speculation may be required.
In terms of environmental analysis, this case connects a discussion of
FRESHDIRECT, AS OF OCTOBER, 2004
Case Uses & Objectives
The FreshDirect case presents a strategy analysis and formulation problem in an entrepreneurial e-business environment. It provides students with a case that contains all the elements necessary to lead them through a course overview in a practical real-world setting. This case can be used to augment discussions of strategic analysis, specifically both internal and external environmental analysis (Chapters 2 & 3 in Dess, Lumpkin & Eisner); and strategic formulation, specifically business level strategy (Chapter 5), and e-business (Chapter 8), with an additional focus on strategic implementation, specifically entrepreneurial development (Chapters 12 & 13).
The case moves students towards two specific questions. First, there is the question of how FreshDirect has used industry analysis to examine their industry’s general environment plus the competitive impact of suppliers, buyers, threats of new entry, substitutes and rivalry. Second, based on this strategic analysis, is an assessment of FreshDirect’s choice of a competitive e-business strategy: 1) differentiation within the grocery industry based on service quality, and 2) cost leadership in their warehouse operations. Overlaying these basic questions is the nature of the entrepreneurial environment and to what degree the FreshDirect owners are capitalizing on their resources, expertise and entrepreneurial ambition.
The case is written in a style that overviews the situation but intentionally avoids guiding students through any analytical framework or specific application question. In so doing, it provides the instructor with the latitude to adjust class discussion and thereby accommodate the abilities of a wide-range of students. Specifically, the instructor can invite students to reason through a situation where uncertainty exists and speculation may be required.
In terms of environmental analysis, this case connects a discussion of