CASE STUDY REPORT
FreshDirect www.freshdirect.com Online Grocery Store
BACKGROUND/HISTORY
FreshDirect is an online grocer that provided 100% fresh foods to locations near you and to your front door. It allows you to order your food online and delivery of your food will come the next day. The primary business of FreshDirect to is provide healthy fresh foods for you to shop online without going to the grocery store. FreshDirect key players would be the founders of the company, Joseph Fedele and Jason Ackerman (CEO).
FreshDirect started off in New York City about six years ago and is growing and profitable. So far this year, the company 's CEO Rick Braddock, says that in the first few weeks of 2010 his company has been growing at an
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* Another big threat for FreshDirect that; early 2007 NYC government proposedcongestion charges for traffic entering into Manhattan.
* Local stores or distributors also make a strategy for delivery perishable productsto the customers.
* Rising of fuel price may also a potential threat on FreshDirect; and penaltiesoccurred from parking violation has also big pressure on FreshDirect.
* FreshDirect visible cardboard boxes are also environmental threat.
* FreshDirect trucks parked in big city streets had made the traffic congestionproblems worse.
* The rival of FreshDirect may adopt the advanced food technology softwaresystem.
ANALYSIS VIA PORTER’S FIVE FORCES MODEL
It is important to analyse the competitive nature of the online grocery industry in order toassess the position of FreshDirect. The Portert’s 5 Forces tool will enable to makestrategic decisions in orders to increase profitability.
Threat of New Entrants
The new entrants requires a big capital, experience, understanding the advance technology system, learning online grocery and access to suppliers and distributors (Low).
Threats of Substitue
The local suppliers, distributors and corner stores are other options of customers to buy fresh food. But FreshDirect is familer of its brand name, and mostly customer are loyal with FreshDirect.
Power of
The following analysis of Porter’s 5 Forces Model will help in determining the threats that my be present now or in the future and help determine opportunities and decisions regarding the marketing plan.
Threats * Seasonal Fluctuations and Highly Uncertain in Demand * Razor-Thin Margin With Majority of Clients * Stagnant Growth in the Meat Market and Retail Channel Segment
Procure with usage of Hello Fresh discount codes to get relief through an online way is an option you can attain with possible buying means you require with offers you attain from this store where you trade with using an online coupon website as essentials you are acquiring when you want discounts on ingredients as well as meals you consume from this online store to have lessening in prices only on Hello Fresh.
The overall threat of new entrants in the retail market is a high level threat as it is relatively easy and inexpensive to enter
CCPC is considering how it should account for the Fresh & Bright coupon drop that took place on October 1, 2009. In doing so, CCPC asks for your help. Prepare a memo addressing the following questions. Base your analysis of the following questions on the relevant authoritative literature and discuss the support in that literature for your conclusions. Be sure to cite the relevant components of the Codification (available at: http://asc.fasb.org) in your discussion. Citations are not required for journal entries.
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CCPC introduced a new product September 1, 2009 called Fresh & Bright. Part of CCPC's marketing campaing was to "drop" appromixamatly 500,000 coupons in the Sunday newspaper where Fresh & Bright was sold. The coupon worked in the following way:
Based out of Long Island City, Queens, FreshDirect was launched in July 2001, by Joseph Fedele and Jason Ackerman. It offers online grocery shopping and delivery service to over 300 zip codes in the Manhattan, Queens, Brooklyn, and surrounding areas. At the time of launch, there had been numerous other online grocery ventures that had ultimately met their demise. What made Fresh Direct unique was that it could offer grocery shoppers: “higher quality at lower prices.” It was able to do so because it had no retail location, which meant there was no rent to pay for retail space. In order to provide its customers with
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