Case Study- Porter's Forces

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School

Loyola Marymount University *

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Course

3610

Subject

Information Systems

Date

May 17, 2024

Type

pdf

Pages

2

Uploaded by DoctorKangarooPerson3874 on coursehero.com

1) How does FreshDirect gather data ? FreshDirece gathers data through channels such as what method was used to place orders i.e on the web or through the app. Then they track customers’ ordering behavior to fine-tune personalized recommendations for customers. This data can also be used for inventory purposes as well. 2) How does FreshDirect ensure quality of items sold ? One of the main ways that FreshDirect ensures quality items are sold is by having a close relationship with suppliers to source the freshest ingredients. Furthermore, they also have quality control teams that check products before they are shipped. 3) How does FreshDirect maintain freshness of items ? FreshDirect uses special temperature-controlled trucks to transport products. They also use logistics to ensure that products are not stored for too long. 4) What is the strategy of FreshDirect to reduce labor cost ? One strategy that FreshDirect uses to reduce labor costs is automation in their warehouse and fulfillment centers. Furthermore, efficient route planning can also help with cutting down the hourly wages that need to be paid to drivers. 5) What are disadvantages of FreshDirect model ? There could be some issues of geographic availability especially for areas that arent as close to supply warehouses. Furthermore, customers must be familiar with the technology so FreshDirect might have a hard time reaching older generations. 6) What advantages do customers have ordering from FreshDirect over other competitors ? Fresh Groceries delivered to their door rather than having to take time to go to the store. Furthermore, there is a variety of products which they can select from which they might have had to go to a specific store to get. 7) What is the principal business strategy of Zara ?
Zara’s principal business strategy is fast fashion. Fast fashion consists of making cheap but trendy clothes that get swapped out regularly. 8) How does Zara deliver products several times faster than competition ? Zara has its own factories which allows it to react quickly to fashion trends. They also have a vast network of local distribution centers that enable them to quickly stock their stores with new styles. 9) What is Zara's Inventory strategy ? Zara produces clothing in small quality and restocks depending on the demand for clothing items. This makes it so there isn’t too much excess inventory. 10) How does Zara gather customer data ? One way that Zara is able to track customer data is through its loyalty program. This allows Zara to match customers with their specific purchases providing valuable marketing data.
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