Case Study 23

EXECUTIVE SUMMARY:

FreshDirect is part of this online supermarket chain that has proven to be disappointing and costly for some organizations that have entered the market. However, FreshDirect was launched in July 2001 with the view that consumers were after fresh products, at low prices, that could be delivered straight to their doors at convenient times. They have proven to the industry that their strategies and philosophy’s have led to success and consumer based growth within the industry.

The analysis of the organizations internal environment through such tools as the value chain and the resource based analysis, has demonstrated some areas where they create value and more importantly, a competitive advantage. It creates its value through certain primary activities like their operations, marketing and sales, outbound logistics and its services. Additionally, they create a competitive advantage through such resources as financial and physical resources and also some intangible resources like the knowledge and skills of the human capital.

The analysis tools that are used to examine the external environment of FreshDirect are the theories of the general environment and the five forces model identified by Michael E Porter. These tools analyse the external influences on the industry and analyse the organizations competitive environment. This is a great tool to establish where exactly FreshDirect fit in the ever changing industry.

FreshDirect’s business – level strategy shows how they intend to compete by the means of mainly the differentiation strategy. They strive to differentiate themselves through their operational facility, process and products. By functioning and succeeding this strategy, it will give FreshDirect the opportunity to grow and expand to surrounding markets.

INTRODUCTION:

The purpose of this paper is explore the strategic managerial world through the eyes of an innovative firm being FreshDirect.

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