Fresh Direct Case Study Example | Topics and Well Written Essays - 1750 words

Fresh Direct - Case Study Example This paper outlines that Jason Ackerman and Joseph Fedele. As a result, many retail grocery stores started offering their service online by developing their websites; online grocery shopping was considered as the best way of doing shopping for food and it affected sales of various retail giants. In order to place an order, the customers need to have an order of $30 along with delivery fees. The company was significantly impacted when competition intensified in the industry as competitors started offering local organic and grown food items but there were some aspects that these emerging competitors were unable to compete with the company. FreshDirect claimed to have revenue of about $250 million which is an increase of almost $20 million from previous year; the customer base is within the range of 20-25%. YourGrocer has been launched with strategy focusing on bulk buying as customers prefer to order in large quantities of goods and get instant deliveries which is being offered by this online grocery store According to Johnson et al., Porter’s five forces model is important for assessing the position of a company in its industry. It will help in making decisions strategically that will help in increasing profitability of FreshDirect. The threat of new entrants is low in online grocery industry as new entrants will have to invest huge capital amount and need to have experience along with understanding about advance technological system for efficient management. Any new entrant will have to learn various aspects on online grocery stores and have access to reliable suppliers and well-known distributors. Customers these days are aware of various options that are available online and have high power for bargaining their prices and needs. It is easier for customers to switch to other competitors if they are not provided high quality products at affordable price range.