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S5_FreshDirect_Answer - Session 5 Case 6.1 FreshDirect...

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Session 5, Case 6.1 –FreshDirect Defies the Critics 1. Look up articles on Webvan and find the various reasons for its failure. Compare and contrast Webvan and FreshDirect to determine the reasons for FreshDirect’s success. Speculate as to whether or not FreshDirect can continue to thrive. Responses could include some of the following points: Webvan found their orders declined after they changed their fees for delivery. They had difficulty raising cash for operations. They didn’t consider that customers who worked would want their deliveries at night, not during the 2 hour window that Webvan had established. None of the executives had experience in the supermarket industry. 2. Apply Porter’s competitive forces model to FreshDirect. Discuss each of the five forces as it applies to FreshDirect. [sample answers are provided. others are possible] Threat of new entry: FreshDirect has considerable expertise and custom software that help it get products delivered quickly and accurately. It took several years to build
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