Preview

Fresh Direct Case Study

Powerful Essays
Open Document
Open Document
1719 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Fresh Direct Case Study
Fresh Direct Case Study
FreshDirect
23–30 Borden Avenue
Long Island City, New York 11101
U.S.A.
Telephone: (718) 928-1000
Fax: (718) 433-0648
Web Address: https://www.freshdirect.com/
Business Type: Online Grocery
Private Owned Company
Background – History
FreshDirect on-line grocery was founded in 1999, by Joe Fedele, and Jason Ackerman. Started as an on-line option to traditional grocery stores, the company specializes in delivering a wide variety of about 5,000 items. Sales of such things as fruits, vegetables, seafood, prepared entrees and sides, coffee, meat products, deli and cheese products, and bakery items, are just a small part of what the company markets. The company provides same day as well as next-day delivery to some 600,000 customers or more, making over 45,000 deliveries per week in the greater New York City metropolitan area. Typical neighborhoods it serves; Manhattan, Brooklyn, Riverdale, Queens, Staten Island, Connecticut, Long Island, New Jersey, and Westchester County.
Proud of its motto concerning the company, it states, “Our Food is fresh, our customers are spoiled….. Order on the web today and get next-day delivery of the best food at the best price, exactly the way you want it with 100% satisfaction guaranteed.” With a solid commitment to customer service, FreshDirect has solidified its presence in the online grocery business, partly through its partnership with farmers and artisans. Having this direct partnership allows the company to maintain strict quality control over the products offered to customers. As with many ventures, however, there were bumps in the road, with the company recovering much of its losses after an immigration audit, creating a crisis in 2007. The company has managed to weather those storms to remain a viable online grocery store.
In addition, FreshDirect hopes to extend its services to low-income customers. With that, the company is looking at expanding its customer base to include customers who

You May Also Find These Documents Helpful

  • Good Essays

    Traditional grocery stores have fallen by the wayside as supercenters and specialty food stores grow. They are increasingly looking for ways to differentiate themselves from the rest of the competition. Oftentimes, the supercenters are able to offer lower prices on food while offering a sizeable selection of other goods that food-only grocery stores find it hard to compete with. Some of these changes have come by mergers and the ability to purchase more for less and changing their appeal in the market. These stores have implemented new technologies such as self-checkouts and biometric technology that allows people to pay at the checkout with a scan of their finger to sway the consumer with convenience. Grocery stores are also differentiating themselves by touting their store brands, as premium goods as opposed to the well know value brands. They are changing their layouts and up scaling their stores to meet customers demands for a reason to enter their retail dwellings. Some groceries are offering even more convenience with the addition of specialty offerings such as Starbucks and fast food restaurants.…

    • 559 Words
    • 3 Pages
    Good Essays
  • Better Essays

    FreshDirect is an online grocery store that that provides shopping experiences and services to the vicinity population around the metropolitan area of New York (Dess, Lumpkin, Eisner, & McNamara, 2012, p. C125). Jason Ackerman and Joseph Fedele cofounded FreshDirect in 2001. FreshDirect serves thousands of customers around the New York area, and in 2010 it brought an approximate profit of over $250 million, demonstrating a surge of $20 million from the previous year (Dess et al., 2012, p. C126).…

    • 1287 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    SIB429 Whole Food

    • 3764 Words
    • 12 Pages

    "Whole Foods Market is a dynamic leader in the quality food business. We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Whole Foods Market."…

    • 3764 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Is Case Study

    • 394 Words
    • 2 Pages

    5. Add conditional formatting to each applicable column to highlight the high amount in green and the low amount in red.…

    • 394 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    week 3 case study

    • 1159 Words
    • 5 Pages

    Fresh Direct has had many ups and downs. It had initially set up a goal of getting a hold of 5% of the grocery market in New York, but they were not able to do this till 2011, only after having expanded to other states and the greater part of New York. In 2007, workers at company wanted to unionize due to low wages and an immigration audit later on in the year led to mass resignations from workers, and the workforce was reduced to almost half. However, in the midst of all these challenges Fresh Direct was able to develop their 4 minute meal line which greatly boosted sales (Chatterjee & Laseter, 2004).…

    • 1159 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    The threat of new entry is medium to low, because the grocery segment is characterized by low margins, as the food segment is prone to fierce competition and price cutting. The grocery retailers are able to achieve some customer loyalty by offering convenience and low prices, however, customers are free to choose stores and brands without incurring any additional costs.…

    • 290 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    marks). IN-N-OUT is always making sure that the inventory of food is fresh and meets their…

    • 379 Words
    • 2 Pages
    Good Essays
  • Good Essays

    This relates to Whole Foods mission of offering “the highest quality, least processed, most flavorful and naturally preserved foods.” By keeping a closer eye on their preexisting stores as opposed to only focusing on the addition of new stores Whole Foods can accurately and effectively maintain the high quality standards they have been…

    • 766 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    COMPANY NAME 2012 COMPANY NAME seeks to be a one stop shop for the local community, whether it be copying, faxing, shipping, or just daily shopping, we want local residents to know that we will be able provide for their diverse needs in a store with them in mind. 4.3.1 Competition and Buying Patterns The customer base of COMPANY NAME is very diverse in that there is a group of general customers that just purchase store brand and national brand products, another group high end customer who request select gourmet products, such as capers, anchovies, specialty sugars, and the like and the cost for these items is approximately 150.00 month, and finally healthy choice customers who request a selection of natural organic products, the cost for these items is approximately 2000.00 month. In order to maintain our customer loyalty base and continue to increase sales revenue, we make these products available. The community has become accustomed to these products and expects them to continue. Depending upon the size of the community, there may be several stores to choose from. Larger communities, such as CITY, have several larger chain grocery stores as well as smaller specialty gourmet stores, whereas, a small community may have a single grocery store, or possibly two stores to choose from. BUSINESS PARTICIPANTS The grocery industry is extremely competitive with the rise of hyper marts, convenience stores, and food drug stores all competing for the same customers. This presents…

    • 3512 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Whole Foods “walks the talk” when it comes to fulfilling its core values. Whole Foods has extremely high standards when it comes to choosing its suppliers and products. Whole Foods has strict standards which are adhered to when it comes to the ingredients used in the products it sells; no artificial colors, flavors, preservatives or chemicals are found in the products at Whole Foods. Whole Foods also contributes to local communities by donating a percentage of its earnings to charities and non-profit organizations. Whole Foods’ core values have definitely contributed to its success. Whole Foods boasts a very low employee turnover rate; one much lower than traditional big box grocers. Whole Foods offers competitive benefits packages for its employees and promotes from within the company. Employees seem very satisfied with working for Whole Foods, which is a major contributor to its success. The high quality of products offered and the relationship with its suppliers has also been a major success factor. Whole Foods actually works with the farmers and suppliers, often times extending loans so that its high quality standards can continue to be met.…

    • 824 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    The US retail grocery industry includes about 65,000 supermarkets and other grocery stores with combined annual revenue of about $550 billion. Key growth drivers are consumer spending habits and food trends (Blank, 2014). Over the past twenty years, the traditional supermarket has been shaped and reshaped to try and meet consumer demands. Recently, generation Y has begun to push its impression on supermarkets looking for a fresh market and whole foods market approach that bring more natural, organic, and specialty foods to the forefront. Population growth and consumer tastes drive demand. Large corporations can offer a widespread selection of foods and have the edge in purchasing, large distribution channels, marketing dollars, and financial backing. Small companies must…

    • 1247 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Secure a position at Cuyahoga Community College as an instructor in the Deaf Interpretive Services Program - specifically, however, not limited to, Field Experience Lab 1 – DIS 1740; Field Experience Lab II – DIS 2740. With this position, I will be able to maximize my knowledge of working with students on building skills that exemplify proficiency and expertise in the profession as interpreters for the deaf, hard-of-hearing and deaf…

    • 71 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Due to the fact that customers are more knowledgeable and demanding than ever before, change is constant throughout the supermarket industry. As a result, to remain competitive for the next 10 years and beyond, knowing what customers need and being able to meet those needs is be critical. For example, as the population becomes more diverse, there will be a greater demand for various ethnic food products. Similarly, as health and nutrition become more of a national focus, there will be a greater demand for high quality foods that are rich in nutrition, as well as organic products, etc. In addition, technology such as self checkout stations in supermarkets and online shopping capability will continue to change the landscape of the supermarket industry.…

    • 1003 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Whole Foods

    • 2291 Words
    • 10 Pages

    From the fairly humble beginning of being a one-store entrepreneur living on the third floor and taking baths in the dishwasher, John Mackey has seen his 1978 Safer Way grocery store grow into an $8 billion a year corporation. As of September 2008, Whole Foods had 264 stores in the United States, six in Canada, and five in the United Kingdom. Whole Food’s is now the leading chain of natural food supermarkets in the United States. The company 's stores average 28,500 square feet in size and feature foods that are free from artificial preservatives, colors, flavors, and sweeteners. They also offer many organically grown products. Many locations include in-store cafes and juice bars. Whole Foods has also developed a growing line of private label products such as organic pasta, freshly roasted nut butters, oak-aged wine vinegars, and aromatic teas. After the company was founded in 1980 with a single store, it grew dramatically into a chain of more than 130 stores in 25 states, the District of Columbia, and Canada. It is a Fortune 1000 company, ranked as the 41st largest U.S. supermarket and the 730th largest U.S. company overall. There are few companies that attract the kind of following Whole Foods and its CEO/founder has both among its customers and the national media. Their corporate website averages more than 50,000 visitors a day. Through a long series of acquisitions, John Mackey has created a niche retailer which enjoys lofty profits in a very price competitive industry that is typically characterized by accordingly low profit margins. Whole Foods had 275 stores, and 50,000 plus team members in 2008 with a goal of 1,000 stores open in the future (Whole Foods Market, 2008a).This ever-evolving, often controversial organic retailer is facing several major strategic issues in both its external and internal…

    • 2291 Words
    • 10 Pages
    Better Essays
  • Good Essays

    Operations Management

    • 1823 Words
    • 8 Pages

    A conventional “bricks and mortar” grocery does not have an online presence, only a physical one. It is built on a face-to-face customer service, and usually always has a building for their operations. A “brick and mortar” grocery has advantages and disadvantages compared to an online operation, like Theorganicgrocer.com. First of all, their major disadvantage is the overhead. The cost of property, insurance, taxes and staff is much higher for a “brick and mortar” operation than an online operation. The biggest advantage for a “brick and mortar” operation is customer security. To a customer, if a company has physical presence, it is seen as more reliable as the company is far less likely to fold overnight and disappear.…

    • 1823 Words
    • 8 Pages
    Good Essays