Fresh Direct case analysis Essay

place setting/HISTORYFreshDirect was launched in July 2001. Cofounder and former chief executive officer Joseph Fedele, Joseph Fedele was equal to bring a wealth of experience in New York urban centers food industry to FreshDirect. In 1993 Joseph Fedele cofounded Fairway Uptown, a 35,000 foot supermarket find on West 133 Street in Harlem. Only reason Fairway survived in that location was of Fairways low prices and quality selection of produce and meats which do the store a big hit with approximation residents and galore(postnominal) downtown and suburban commuters. FreshDirect primary business is for consumers who want to shop for their produce from the treasure of their own time and ask. Being fitted to shop from work, home, app, pretty some(prenominal) anywhere and direct it either delivered to you at work, meet up with them at a specific location or even just split up it up at their very own FreshDirect location is their goal, along with making sure the customer get s what they want and guarantee the freshness of their items. FreshDirect is still in business and their corrent chief operating officer is Jason Ackerman.However as the case listed FreshDirect went through many CEO changes. Which isnt always a ample thing further since FreshDirect was growing so much, so quickly there was in need of changes to happen. Cofounder Joseph Fedele had remained CEO until January 2004, when cofounder Jason Ackerman succeeded him in that fructify. Since thusly, FreshDirect has experienced six-fold CEO changes. Jason Ackerman stayed as CEO of FreshDirect for a little over seven months, until Dean Furbush succeeded him in that position in September 2004. Ackerman remained vice chairman and chief financial officer. The term of office of Dean Furbush lasted a little over two years. Steve Michaelson, president since 2004, replaced Furbush as the CEO of FreshDirect in early 2007.9 In 2008 Michaelson left for another firm, and FreshDirects chairman of the board, Richard Braddock, expanded his role in the firm and took over as CEO. (St sum upgic Management 2012) FreshDirect main promise when opening was Our food is fresh, our customers argon flub. Order on the web today and get next-day preservation of the outperform food at the best price, exactly the way you want it, with vitamin C percent satisfaction guaranteed. Since FreshDirect is still in business and still amend since when they first undefend open they have not changed their main mission which was to prides itself on sourcing the highest quality food and freshest ingredients available for their customers and being able to deliver them when they want. fancy up ANALYSISStrengths well-known brand high quality produce multiple ways to nightspot/deliver lonesome(prenominal) company that allows you to change rate the freshness more options on what kind of meat thickness, type, etc to choose fromWeaknesses live on large market for many other competitors many stores around the coign open lateOpportunities expandable since having their own trucks longer delivery multiplication advantage of owning own trucksThreats many high quality organic produces, lower-price at competitors Whole Foods or Trader Joes moving into a FreshDirect neighborhood numerous competitors lower prices for delivery with competitorsANALYSIS VIA PORTERS quintette FORCES MODELSTRATEGY USEDFreshDirect has been using the same strategy since they had opened in 2001. They have been able to fulfil what the customer wants and how they want it all time a customer is shopping. Being able to rate products and demo them the rate of how fresh the product might be helps every customer out every time. Able to deliver the same day and in addition next day right to your office or doorstep along with being able to pick up at the store is a strategy that FreshDirect has been using since the opened. Since they own their own delivery trucks they are able to deliver anytime needed for the custom er. Low prices, and also having a minimum order to just $30 with a low delivery fee is great for any shopper.THE ISSUES AND CHALLENGES FACING THIS COMPANYOnly enigmas, issues, and challenges that are faced by are the company are very small. Main one would be the fact that not a lot of bulk like to subvert their produce online, since they are not able to pick it themselves, however FreshDirect has been able to show many consumers that they can be trusted, and many consumers are minded(p) a choice on what they want and how they want their meats. Another problem faced by FreshDirect was that many people were concerned closely the pollution the trucks/vans were giving off by FreshDirect when delivering groceries. Also another issue that was a concern for the company was the volitions for parking that the company got, and blocking traffic in the city when delivering. FreshDirect had to pay for them, along with many boxes that were wasted when boxing everything variant for each cus tomer, there was no way for customers to return the boxes to the company for straight-laced recycling.COURSE OF ACTION RECOMMENDEDSince the company is already doing well there is only a few things I would change. I would first lower the prices for delivery since many people will find that high, and along with that give discounts on separate bulk orders so it is like a wholesaler much(prenominal) as Sams or Costco or even BJs. If that is done, and rapture prices are reduced then they would not have to worry about Amazon and even Walmart effecting their business that are larger markets that could hurt the business. sagaciousnessI feeling that in my opinion I really do not like shopping for groceries online, I am one of those people who like to shop in person for things like this, however Id shop online a lot but for food, I feel like it is more of a hands on process that should be done then just ordering your meats and produce online. Even though the market for online shopping is good, since some people do not have time to physically go shopping, it is not a bad idea. When I was first reading this, I thought to myself, how can they succeed, but then realized in NY there are many people who are busy with their jobs and family, where this would eliminate some time in spending at a store.REFERENCESDess, G., Lumpkin, G. & Eisner, A. (2012). Strategic Management (6e). Boston McGraw-Hill Irwin.Fresh Direct, LLC. (2002 2014). Retrieved butt 19, 2014, from https//www.freshdirect.com/index.jspPorters Five Forces Problem Solving Techniques from MindTools.com. (1996 2014). Retrieved March 19, 2014, from http//www.mindtools.com/pages/ member/newTMC_08.htm