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Freshdirect

In: Business and Management

Submitted By nj28agos
Words 2853
Pages 12
Summary
FreshDirect is a mobile grocer based in Queens, New York that delivers fresh produce, meat, dairy, and other food straight to residences within the state and surrounding areas. To help customers who find grocery shopping a chore, its greatest appeal is that the system allows customers to order food online instead of traveling to a physical store. All of their locations receive their food from one 300,000 square-foot production center, which means FreshDirect does not carry the burden of paying for retail space. Their mission is to buy locally as much as possible, so customers know their ingredients are fresh. As an online delivery grocer, the website is main artery of the whole operation. This is where customers can customize their meat cuts, review in-season and out-of-season produce, choose their delivery time, and pay for their order. By eliminating the middleman, customers can directly order produce, meat, seafood, baked goods, and coffees that are customized to their specifications. Online grocers have become increasingly popular in metropolitan areas during the last decade. In 2010, FreshDirect’s revenues accumulated to over $250 million, while total online grocery shopping sales were estimated to be about $8.4 billion. FreshDirect still faces numerous challenges like the rising cost of fuel, pressure from environmental groups to be more eco-friendly, and a large accumulation of traffic violations when trucks double-parked during deliveries. The company continues to improve, and has even implemented a 5-star rating system in which customers can view and rate the food for others to view online. All of these elements have aided in their success, but they must continue to keep up with technology to remain market leaders.

Situation Analysis
Strengths
FreshDirect’s efficiency system is cutting edge in the online grocery industry. They use an SAP...

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