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
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use 30% less energy than typical grocery stores its size‚ and recycling is a priority. Fresh & Easy has been a savior tenant for many developers‚ eating up 14‚000 square foot chunks of old space and dark drug stores (Retail‚ 2009). Its entrance into the United States was the first time Tesco entered a country without a supercenter format. Tesco did not want to become like Wal-Mart. Tesco launched its United States Operations with a small format neighborhood grocery store under the Fresh & Easy name
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company is operating in three different locations for the last seven years at La Jolla‚ Del Mar‚ and Encinitas areas. Each store has 16‚000 square feet of retail space in shopping mall buildings. The stores are full with the best imported groceries‚ domestic groceries‚ different departments‚ and effective management in areas such as bakery‚ pastries‚ produce‚ meat‚ seafood‚ condiments‚ packaged foods‚ cheese‚ and dairy products. The company is doing well with the effective business management strategies
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Wal-mart one of the largest company in the world. Wal-mart is the world’s largest retailer and also the world’s largest private employer having over 2 million employees. In the U.S it is the biggest grocery retailer. In 2009‚ it generated 51 percent of its revenue in the United States from grocery business. It has more than 8‚500 stores in 15 different countries‚ with 55 different names. It also operates in 50 states of U.S under its own name. In 2009 Wal-mart launched "Sustainability Index"
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1. Is the U.S. grocery industry an attractive one? There are two sides of this industry. Firstly‚ U.S. grocery industry is not very attractive for following reasons. 1) Buyer’s bargaining power is strong. Customer does have negotiating leverage since the kinds of product in grocery stores are pretty standard‚ including food‚ drugs etc. So the switch cost for customer is very low. Also‚ because the grocery cost is one of the biggest spending buckets‚ the customer group is very price sensitive
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large players that dominate the market. Continued consolidation and a focus on organic and natural products are the major trends that dominated this industry. Grocery stores account for 90% of food and beverages sales and supermarkets account for 95% of the total grocery stores sales (exhibit 1).Competition is also on the rise for the grocery segment. Larger players like Walmart Stores and Target‚ supermarkets like Kroger and Roundy’s‚ as well as organic retailers such as Whole Foods Market and Sprouts
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advertisements for home-cooked foods. The grocery store chain‚ Trader Joe’s‚ is a solution to this. The Trader Joe’s corporation should expand their stores into Inglewood‚ Calif bringing healthier‚ fresh‚ organic and cheap produce to a community that needs it. Trader Joe’s was founded by Joseph “Joe” Coulombe in 1968. It started off as a chain of Pronto Market convenience stores in the Greater Los Angeles area but eventually emerged into a chain of grocery stores. The company was later bought by German
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1. Retail grocery stores ----Specialty retailer Industry 2. Commercial banking ----Commercial banks Industry 3. Pharmaceutical preparations ----Pharmaceuticals Industry 4. Commercial airline ----Aerospace and defense Industry 5. Computer software ----Network & other comm. Equip. Industry 6. IT service provider ----Internet services and retailing Industry 7. Liquor producer and distributor ----Beverages Industry
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alternative strategy might Target have followed in responding to the first signs of declining revenues and profits? Add coffee house‚ it began converting a corner of it department stores into mini-grocery stores carrying a narrow selection of 90 percent of the food categories found in full-size grocery stores including fresh produce. Secondly‚ Target suprised many analysts by unveiling a new package for its main store brand. 5. Given Target’s current situation‚ what recommendations would you make
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Attractive Characteristics Consumer demand shifting toward organic/natural grocery options‚ which creates market space for new entrants Most current grocers are very similar and treat groceries as commodities in that they attempt to differentiate themselves on price alone. This means there is space for brave entrepreneurs who believe they can differentiate themselves through other means (i.e. Amazon trying online/home delivery groceries or Trader Joes) Consumer shifting perception of valuing “one-stop-shop”
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