100%(2)2 out of 2 people found this document helpful
This preview shows page 1 - 4 out of 16 pages.
Final Exam BBA7Fresh Direct Strategic AnalysisMariam AbeslamidzeRTU Riga Business School10/12/191
Final Exam BBA72
Final Exam BBA7Introduction and Company OverviewGrocery and food service industry is one of the most essential and needful industries in the world since the different types of food products satisfies the humankind basic needs. This field and business line, in general, is tied to population growth and consumer tastes, accordingly it is necessary to have good merchandising and high volume sales; furthermore, nowadays, there is quite high competition from different alternative retailers because as discount stores realized the traffic-driving power of food sales, the competition has become more intense. Grocery and food online or land-based stores operate within extremely low margins and depend on volume to generate profit and existed competition limits companies’ abilities to raise prices. FreshDirect is an online grocer established in 1999 by Joe Fedele and since that time is existing in a market offering custom-package groceries and meals with delivery services, even more competes with worlds biggest retailers and grocery stores such as Tesco, Walmart etc. During existence company has introduced to its audience various types of products, services and programs that has been keeping its uniqueness and exclusivity; company created its own brand image and customer loyalty from the very beginning by focusing on healthy and natural product offering to its customer. However, as every business once in a while struggles with the rivalry, FreshDirect also came across with this issue. The company is facing different types of business challenges as stated by grocery industry, such as trial to survive due to a combination of intense price competition and low margins in the grocery retailing industry, Large foreign companies expansion by acquiring regional chains and opening new stores, dependence on discounting and promotion, frequent discounts that conditioned consumers to look for the best deal and have diminished store loyalty, deep discounts and specials offerings often create short-term volume increases at the expense of long-term for this business etc. FreshDirect by introducing new products and service developments that is rare and valuable, applies to current market demand and retains its competitive advantage as it offers online grocery shopping and delivery easily andfast. Its pickup and corporate service to select delivery zones captivated customer, furthermore, to offer the highest-quality products to its customers, FreshDirect had designed a state-of-the-art production centre and staffed it with expert personnel.Mission - “We're on a mission to deliver quality beyond question and convenience that adds something great to your day”.Vision - “traveling near and far to bring our customers the very best value as they are collaborators who share our passion”.Slogan - Short supply chain, best value and always evolving brings us to high quality.Values - Quality, innovativeness, freshness, state-of-the-art production, high health and safety, cost-effective operational design. 3